Enforcing Little Miller Act Claims in Tennessee

Important Bond Terms in Tennessee's Litle Miller Act

The Tennessee statute known as the Little Miller Act requires that a contractor working on a state or local public project with a contract price of $100,000 or more must post a surety payment bond to secure the contractor's payment of all labor and materials used by the contractor or an immediate or remote subcontractor. The purpose of the surety bond is to protect the government owner and furnishers of labor and materials on public land. The statute does not require a performance bond, although the awarding agency can choose to require one.

The payment bond amount is often for the full contract price, but Tennessee's Little Miller Act only requires that the bond be no less than twenty-five( 25 %) of the public contract. An exception is highway projects whose bond is fixed by the Department of Transportation (DOT).

National Lien & Bond can help you file your claim in Tennessee if you are a subcontractor who has not been paid.

Distinctions Between Statutory and Common Law Bonds

A claimant's rights vary significantly if the bond is considered a statutory or common law bond. If the bond is for the minimum required under the statute, the bond is considered statutory. If the bond is for more than the minimum required, the bond is regarded as a common law bond.

• Notice Claims Under Statutory Bonds

Under a statutory bond, a claimant must strictly comply with pre-suit notice requirements and suit filing deadlines. A claimant must provide written notice to the contractor or public official within ninety (90) days after the completion of the public project, not the completion of the claimant's work. The notice must detail the nature of the claim, the material and labor used, the unpaid balance, and a description of the property improvements. Mailing of notice is by certified mail, return receipt, or hand delivery.

• Notice Claims Under a Common Law Bond

Under a common law bond, which gives the claimant greater protection than the statute, the claimant only has to comply with the terms of the bond itself rather than statutory notice provisions.