FAR 31.205-4 Bonding costs
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 31.205-4
- Type
- Subsection
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
(a) Bonding costs arise when the Government requires assurance against financial loss to itself or others by reason of the act or default of the contractor. They arise also in instances where the contractor requires similar assurance. Included are such bonds as bid, performance, payment, advance payment, infringement, and fidelity bonds.
(b) Costs of bonding required pursuant to the terms of the contract are allowable.
(c) Costs of bonding required by the contractor in the general conduct of its business are allowable to the extent that such bonding is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances.
Quick answers
What is FAR 31.205-4?
FAR 31.205-4 is a subsection of the Federal Acquisition Regulation, titled "Bonding costs".
Are changes to FAR 31.205-4 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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