Read the full post at Constructlaw
In September 2013 K-Con, Inc. (K-Con) entered into two contracts with the government to supply and construct pre-engineered metal buildings for a laundry facility and a communications equipment shelter. The government issued both contracts using Standard Form 1449, entitled Solicitation/Contract/Order for Commercial Items. The contracts’ terms did not contain any requirement to provide a performance or payment bond. Nor did they include FAR 52.228-15, which requires performance and payment bonds on construction contracts.
In October 2013 the government directed K-Con to supply performance and payment bonds before a notice to proceed could be issued. K-Con initially refused but ultimately provided the bonds two years later. The contracts were then adjusted to add the cost of the bonds.