The Federal Miller Act: Payment Protection for Construction Subcontractors and Suppliers
The Federal Miller Act originated in 1935 and is vital in protecting construction subcontractors and construction material suppliers working on public projects. Each state in the U.S. aligns with the Miller Act and enforces breaches through the state-level Little Miller Act. Legislation exists to provide payment for materials or services furnished in connection with construction projects through payment and performance bonds.
Miller Act Bond Requirements
Under the Miller Act, two primary types of bonds are required:
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- Payment Bonds: These guarantee services, materials, and other project essentials a general contractor furnishes through lower-tier contractual parties, like subcontractors and suppliers.
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- Performance Bonds: General contractors provide these bonds to guarantee obedience to their contracts, indemnifying the public entity from financial loss.
Navigating the Miller Act
The Miller Act requires some specific steps for a claim to be successful. While provisions are ubiquitous, the timelines for various steps below change from state to state.
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- Preliminary Requirements: This statutory right to file a payment-protection claim under the Miller Act requires that the subcontractor or supplier provide written notice to the general contractor within 90 days of the date it provided final materials or services.
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- Acquiring Bond Information: General contractors and public entities must keep copies of the payment bond and give subcontractors or suppliers bond information in the event of a potential claim, which includes the name of the surety, bond terms, and the amount owed.
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- Filing a Claim Against the Payment Bond: Within 90 days after the date they last furnished services or materials, subcontractors and suppliers can file claims on the payment bond for the amounts owed and seek a stop notice for contractors and public entities.
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- Enforcing a Claim Through Lawsuit: If the surety company denies payment, a lawsuit can be filed within one year of the last day services or materials were provided.
Legal deadlines are critical to ensuring the enforcement of a claim in court. When construction subcontractors and suppliers need to file to guarantee payment, there is an opportunity to gain professional help.
Contact National Lien & Bond Today
You have the Federal Miller Act to protect your financial interests in public construction projects. Because of the high level of complexity that can come into play, we recommend that you consult with experienced attorneys who can help you to smooth out the process.
National Lien & Bond has secured over $9 billion on more than 30,000 construction contract liens. Contact us today or fill out our claim form to get started.
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