Federal (Miller Act)
For Federal (Miller Act), performance bond threshold is requires performance and payment bonds for any construction contract exceeding $150,000; payment bond threshold is for construction contracts greater than $35,000, but not greater than $150,000, the contracting officer shall select two or more of the following payment protections; bond amount is 100 percent of the original contract price; statutory citation is 40 U.S.C. chapter 31, verified against its source on 2026-08-17.
- State
- Federal (Miller Act) our reading
- Performance bond threshold
- requires performance and payment bonds for any construction contract exceeding $150,000 verified
- Payment bond threshold
- for construction contracts greater than $35,000, but not greater than $150,000, the contracting officer shall select two or more of the following payment protections verified
- Bond amount
- 100 percent of the original contract price verified
- Statutory citation
- 40 U.S.C. chapter 31 verified
Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.
What the source says
40 U.S.C. chapter 31 , subchapter III, Bonds (formerly known as the Miller Act), requires performance and payment bonds for any construction contract exceeding $150,000, except that this requirement may be waived- (1) By the contracting officer for as much of the work as is to be performed in a foreign country upon finding that it is impracticable for the contractor to furnish such bond ; or (2) As otherwise authorized by the Bonds statute or other law. (b) (1) Pursuant to <http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section3132&num=0&edition=prelim> 40 U.S.C. 3132 , for construction contracts greater than $35,000, but not greater than $150,000, the contracting officer shall select two or more of the following payment protections, giving particular consideration to inclusion of an irrevocable letter of credit as one of the selected alternatives: (i) A payment bond . (ii) An irrevocable letter of credit (ILC). (iii) A tripartite escrow agreement . The prime contractor establishes an escrow account in a federally insured financial institution and enters into a tripartite escrow agreement with the financial institution, as escrow agent, and all of the suppliers of labor and material. The escrow agreement shall establish the terms of payment under the contract and of resolution of disputes among the parties. The Government makes payments to the contractor’s escrow account, and the escrow agent distributes the payments in accordance with the agreement, or triggers the disputes resolution procedures if required. (iv) Certificates of deposit . The contractor deposits certificates of deposit from a federally insured financial institution with the contracting officer , in an acceptable form, executable by the contracting officer . (v) A deposit of the types of security listed in <https://www.acquisition.gov/far/subpart-28.2#FAR_28_204_1> 28.204-1 and <https://www.acquisition.gov/far/subpart-28.2#FAR_28_204_2> 28.204-2 . (2) The contractor shall submit to the Government one of the payment protections selected by the contracting officer . (c) The contractor shall furnish all bonds or alternative payment protection, including any necessary reinsurance agreements, before receiving a notice to proceed with the work or being allowed to start work. 28.102-2 Amount required. (a) Definition . As used in this subsection- Original contract price means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options , except those options exercised at the time of contract award. (b) Contracts exceeding $150,000- (1) Performance bonds . Unless the contracting officer determines that a lesser amount is adequate for the protection of the Government, the penal amount of performance bonds must equal- (i) 100 percent of the original contract price ; and (ii) If the contract price increases, an additional amount equal to 100 percent of the increase. (2) Payment bonds . (i) Unless the contracting officer makes a written determination supported by specific findings that a payment bond in this amount is impractical, the amount of the payment bond must equal- (A) 100 percent of the original contract price ; and (B) If the contract price increases, an additional amount equal to 100 percent of the increase. (ii) The amount of the payment bond must be no less than the amount of the performance bond .
— acquisition.gov, retrieved 2026-08-17
Source
- acquisition.govhttps://www.acquisition.gov/far/subpart-28.1