Difference between revisions of "Bonding Costs"
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| + | {{Cost Allowability | ||
| + | |Allowable or Unallowable=Allowable | ||
| + | |Regulation Source=Federal Acquisition Regulation (FAR) | ||
| + | }} | ||
| + | ==Summary== | ||
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FAR 31.205-4. 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.<ref>FAR 31.205-4</ref> | FAR 31.205-4. 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.<ref>FAR 31.205-4</ref> | ||
| − | + | Bonding costs are '''Allowable''', so long as required by contract, or for general business (so long as costs are reasonble). | |
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| − | (b) Costs of bonding required pursuant to the terms of the contract are allowable. | + | (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. | + | |
| + | (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. | ||
==References and Notes== | ==References and Notes== | ||
<References/> | <References/> | ||
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Latest revision as of 11:09, 28 March 2015
Allowable or Unallowable: Allowable
Source: "Federal Acquisition Regulation (FAR)" is not in the list of possible values (Other, FAR, DFAR) for this property.
Summary
FAR 31.205-4. 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.[1]
Bonding costs are Allowable, so long as required by contract, or for general business (so long as costs are reasonble).
(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.
References and Notes
- ↑ FAR 31.205-4
