How to Enforce Miller Act Claims in California
The California Little Miller Act, the state version of the federal Miller Act, protects subcontractors and suppliers working on public construction projects in California. The law requires the use of payment bonds and performance bonds.
Payment bonds are financial guarantees that all entities involved with the project will be paid even if the principal contractor defaults; their purpose is to protect subcontractors and supplies. On the other hand, performance bonds ensure contractors complete the construction contract as specified. The California Little Miller Act has strict procedural requirements for claim enforcement; here is an overview of the process.
Understand Preliminary Notice Requirements
Before a subcontractor or supplier can file a California Little Miller Act claim, it must notify the general contractor, the public entity, and the surety within 20 days of starting to work on the project or supplying materials. This notice establishes a right to payment protection and intent to file a claim if necessary.
Obtain Bond Information
The general contractor and public entity will have the payment bond on file; subcontractors and suppliers should obtain their own copy of this document. The payment bond will include the bond terms, the amount covered, and the surety company that issued it.
Serve a Stop Notice
A subcontractor or supplier can serve a stop notice on the public entity as soon as a payment issue arises. A stop notice prevents the public entity from disbursing funds to the general contractor until the issue is resolved.
File a Claim Against the Payment Bond
The California Little Miller Act requires that a subcontractor or supplier file a claim against the payment bond within 90 days after the last work was performed or materials delivered. The claim must be filed with the surety company, and detailed information must be provided regarding the amount owed, the services or materials provided, and, ideally, a copy of the contract.
File a Lawsuit to Enforce the Claim
Unfortunately, filing a claim with the surety is not always enough, and filing a lawsuit is the only available recourse. The law outlines specific timeline requirements for following a lawsuit; the lawsuit must be filed within six months after the project is finished and accepted by the public entity. Navigating the timelines and procedural requirements of filing a lawsuit can be confusing, and you do not want to lose your right to claim on technicalities. If you need help filing a Miller Act Claim or an associated lawsuit, contact the attorneys at National Lien & Bond. These seasoned attorneys are well-versed in Miller Act claims, representing clients in California and on over 25,000 projects throughout the United States. National Lien & Bond attorneys have obtained over $9 billion in claims on behalf of their clients, with the average claim value at over $360,000. Contact National Lien & Bond today to resolve your dispute regarding your payment.
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