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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.228-13 Alternative Payment Protections.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause requires the contractor to provide one of several payment protections after award, in an amount equal to 100 percent of the contract price. The protection must cover the full performance period plus one year, and the contractor must submit it within a set number of days after award. It matters because it safeguards suppliers of labor and material against nonpayment.

Applies to: Contractors subject to this clause under FAR 28.102-3(b)

What it requires

  • Submit one of the listed payment protections
  • Provide payment protection equal to 100 percent of the contract price
  • Submit the payment protection within the number of days stated in the clause after contract award
  • Ensure the protection covers the full contract performance period plus one year

Key terms: payment protection · contract price · contract performance period · escrow agreement · payment bond

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 28.102-3(b), insert the following clause:

Alternative Payment Protections (JUL 2000)

(a) The Contractor shall submit one of the following payment protections:

(b) The amount of the payment protection shall be 100 percent of the contract price.

(c) The submission of the payment protection is required within __ days of contract award.

(d) The payment protection shall provide protection for the full contract performance period plus a one-year period.

(e) Except for escrow agreements and payment bonds, which provide their own protection procedures, the Contracting Officer is authorized to access funds under the payment protection when it has been alleged in writing by a supplier of labor or material that a nonpayment has occurred, and to withhold such funds pending resolution by administrative or judicial proceedings or mutual agreement of the parties.

(f) When a tripartite escrow agreement is used, the Contractor shall utilize only suppliers of labor and material that signed the escrow agreement.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.228-12 Prospective Subcontractor Requests for Bonds. · 52.228-14 Irrevocable Letter of Credit. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.228-13 Alternative Payment Protections · SpendQuery