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

FAR 52.228-2 Additional Bond Security.

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 promptly provide additional security if certain events occur, such as a surety becoming unacceptable, failing to provide financial reports, the contract price increasing so a bond becomes inadequate, or an irrevocable letter of credit (ILC) nearing expiration. It matters because it protects the Government and those supplying labor or materials, and failure to act on an expiring ILC can lead to the Government drawing on it.

Applies to: Contractors with bonds or other security under this contract

What it requires

  • Promptly furnish additional security if any surety or issuing financial institution becomes unacceptable to the Government.
  • Promptly furnish additional security if any surety fails to furnish required financial condition reports.
  • Promptly furnish additional security if the contract price increases and the penal sum of any bond becomes inadequate in the Contracting Officer's opinion.
  • If an ILC will expire before the end of the required security period, furnish an acceptable extension, replacement ILC, or other acceptable substitute at least 30 days before the ILC's scheduled expiration.

Key terms: additional security · surety · bond · penal sum · irrevocable letter of credit (ILC)

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

The text

As prescribed in 28.106-4(a), insert the following clause:

Additional Bond Security (OCT 1997)

The Contractor shall promptly furnish additional security required to protect the Government and persons supplying labor or materials under this contract if—

(a) Any surety upon any bond, or issuing financial institution for other security, furnished with this contract becomes unacceptable to the Government;

(b) Any surety fails to furnish reports on its financial condition as required by the Government;

(c) The contract price is increased so that the penal sum of any bond becomes inadequate in the opinion of the Contracting Officer; or

(d) An irrevocable letter of credit (ILC) used as security will expire before the end of the period of required security. If the Contractor does not furnish an acceptable extension or replacement ILC, or other acceptable substitute, at least 30 days before an ILC's scheduled expiration, the Contracting officer has the right to immediately draw on the ILC.

(End of clause)

Sections it refers to

Sections that refer to it

← 52.228-1 Bid Guarantee. · 52.228-3 Workers' Compensation Insurance (Defense Base Act). →

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 52.228-2 Additional Bond Security · SpendQuery