40 U.S.C. § 3131 — Bonds of contractors of public buildings or works
submitted 24 years ago by Pub. L. 107-217 to r/title-40-PUBLIC-BUILDINGS-PROPERTY-AND-WORKS · 477 words · no verdicts yet
Before a federal public-building or public-works contract over $100,000 is awarded, the contractor must provide performance and payment bonds, subject to stated rules. The contracting officer may waive both bonds for impracticable foreign work and may require additional security.
(a) "Contractor" means a person awarded a contract described in subsection (b).
(b) Before awarding a federal contract over $100,000 to construct, alter, or repair a public building or public work, the person must provide bonds that become binding when the contract is awarded. (1) A performance bond must have a surety satisfactory to the awarding officer and an amount the officer considers adequate to protect the Government. (2) A payment bond must have a satisfactory surety to protect everyone supplying labor or material for the contract. It is for each supplier's use. Its amount must equal the total amount payable under the contract unless the officer makes specific written findings that this is impracticable; then the contracting officer sets the amount. It may not be less than the performance-bond amount.
(c) (1) Every required performance bond must cover Government taxes collected, deducted, or withheld from wages the contractor pays while carrying out the contract. (2) For unpaid taxes for a period, the Government must give the surety written notice within 90 days after the contractor files the return for that period, and no later than 180 days after the return was due under the Internal Revenue Code. (3) The Government may sue on the bond for those taxes only if it gave that notice, and only within one year after notice.
(d) A contracting officer may waive the performance and payment bonds for foreign work if the officer finds providing them impracticable.
(e) This section does not limit the officer's authority to require additional performance bonds or other security, or to require them in other cases.
In this subchapter, the term “contractor” means a person awarded a contract described in subsection (b).
Before any contract of more than $100,000 is awarded for the construction, alteration, or repair of any public building or public work of the Federal Government, a person must furnish to the Government the following bonds, which become binding when the contract is awarded:
A performance bond with a surety satisfactory to the officer awarding the contract, and in an amount the officer considers adequate, for the protection of the Government.
A payment bond with a surety satisfactory to the officer for the protection of all persons supplying labor and material in carrying out the work provided for in the contract for the use of each person. The amount of the payment bond shall equal the total amount payable by the terms of the contract unless the officer awarding the contract determines, in a writing supported by specific findings, that a payment bond in that amount is impractical, in which case the contracting officer shall set the amount of the payment bond. The amount of the payment bond shall not be less than the amount of the performance bond.
Every performance bond required under this section specifically shall provide coverage for taxes the Government imposes which are collected, deducted, or withheld from wages the contractor pays in carrying out the contract with respect to which the bond is furnished.
The Government shall give the surety on the bond written notice, with respect to any unpaid taxes attributable to any period, within 90 days after the date when the contractor files a return for the period, except that notice must be given no later than 180 days from the date when a return for the period was required to be filed under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).
The Government may not bring a civil action on the bond for the taxes—
unless notice is given as provided in this subsection; and
more than one year after the day on which notice is given.
A contracting officer may waive the requirement of a performance bond and payment bond for work under a contract that is to be performed in a foreign country if the officer finds that it is impracticable for the contractor to furnish the bonds.
This section does not limit the authority of a contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases, specified in subsection (b).
Source credit: (Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1147; Pub. L. 109–284, § 6(8), Sept. 27, 2006, 120 Stat. 1213.)
- 2002Enacted · Pub. L. 107-217 · 116 Stat. 1147
- 2006Amended · Pub. L. 109-284 · 120 Stat. 1213
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-217 on 2002-08-21.
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