2 CFR 200.326: Bonding requirements

What 2 CFR 200.326 requires

1. Procurement

What you must do

For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, unless the Federal agency or pass-through entity has accepted the entity's own bonding policy and requirements, meet these minimums: a bid guarantee from each bidder equivalent to five percent of the bid price (a firm commitment such as a bid bond, certified check, or other negotiable instrument assuring execution of required contractual documents upon bid acceptance); a performance bond on the contractor's part for 100 percent of the contract price; and a payment bond on the contractor's part for 100 percent of the contract price (assuring payment of all persons supplying labor and material).

When it applies

Construction or facility-improvement contract or subcontract above the SAT under the Federal award.

Construction planBudget justification

2. Procurement

What you must do

The entity's own bonding policy and requirements may substitute for the regulatory minimums only if the Federal agency or pass-through entity accepts them after determining that the Federal interest is adequately protected; absent that determination, the § 200.326(a)-(c) minimums govern.

When it applies

The applicant proposes to rely on its own bonding policy instead of the 5%/100%/100% minimums for construction contracts above the SAT.

Construction planCertifications and assurances

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Sections 2 CFR 200.326 refers to

2 CFR 200.1 Definitions

Regulation text of 2 CFR 200.326

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The Federal agency or pass-through entity may accept the recipient's or subrecipient's bonding policy and requirements for construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold. Before doing so, the Federal agency or pass-through entity must determine that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

(a) A bid guarantee from each bidder equivalent to five percent of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute any required contractual documents within the specified timeframe.

(b) A performance bond on the contractor's part for 100 percent of the contract price. A performance bond is a bond executed in connection with a contract to secure the fulfillment of all the contractor's requirements under a contract.

(c) A payment bond on the contractor's part for 100 percent of the contract price. A payment bond is a bond executed in connection with a contract to assure payment as required by the law of all persons supplying labor and material in the execution of the work provided for under a contract.

Source: eCFR · checked Sep 17, 2026

Questions about 2 CFR 200.326

What does 2 CFR 200.326 require?

For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold, unless the Federal agency or pass-through entity has accepted the entity's own bonding policy and requirements, meet these minimums: a bid guarantee from each bidder equivalent to five percent of the bid price (a firm commitment such as a bid bond, certified check, or other negotiable instrument assuring execution of required contractual documents upon bid acceptance); a performance bond on the contractor's part for 100 percent of the contract price; and a payment bond on the contractor's part for 100 percent of the contract price (assuring payment of all persons supplying labor and material). The entity's own bonding policy and requirements may substitute for the regulatory minimums only if the Federal agency or pass-through entity accepts them after determining that the Federal interest is adequately protected; absent that determination, the § 200.326(a)-(c) minimums govern.

When does 2 CFR 200.326 apply?

Construction or facility-improvement contract or subcontract above the SAT under the Federal award. The applicant proposes to rely on its own bonding policy instead of the 5%/100%/100% minimums for construction contracts above the SAT.

Plain-English summaries for information only, not legal advice. Always check the regulation text, your award terms and your agency’s guidance.