228.102-1  General.

The requirement for performance and payment bonds is waived for cost-reimbursement contracts. However, for cost-type contracts with fixed-price construction subcontracts over $30,000, require the prime contractor to obtain from each of its construction subcontractors performance and payment protections in favor of the prime contractor as follows:

(1)  For fixed-price construction subcontracts over $30,000, but not exceeding $150,000, payment protection sufficient to pay labor and material costs, using any of the alternatives listed at FAR 28.102-1(b)(1).

(2)  For fixed-price construction subcontracts over $100,000--

(i)  A payment bond sufficient to pay labor and material costs; and

(ii)  A performance bond in an equal amount if available at no additional cost.