In Plain English
Quick Answer
A federal law making prime contractors on federal construction jobs over $150,000 post performance and payment bonds. Since you can't lien government property, the payment bond is how subs and suppliers get paid if the prime doesn't. States have their own 'Little Miller Act' versions.
Definition
Definition
The Miller Act is a federal law (40 U.S.C. §§ 3131-3134) requiring prime contractors on most federal construction contracts over $150,000 to furnish a performance bond and a payment bond. Because federal property cannot be liened, the payment bond gives subcontractors and suppliers a remedy for nonpayment. Many states have enacted similar 'Little Miller Act' statutes for state and local public works.
Context
Why It Matters in Bidding
On federal construction, the Miller Act payment bond is a subcontractor's primary protection against nonpayment, since federal property cannot be liened, so knowing the claim deadlines is essential to preserving that right. Estimators and PMs on public work track notice and suit windows because missing them forfeits the remedy entirely.
Example
Example
Unpaid on a federal courthouse job, a drywall sub with no direct contract to the prime sends the required 90-day notice, then files a Miller Act payment-bond claim against the surety.
See Also
Related Terms
FAQ
Questions Contractors Ask
Who can make a Miller Act payment-bond claim?
First-tier subcontractors and suppliers who contracted directly with the prime can claim, as can second-tier subs and suppliers to those first-tier subcontractors. Parties more remote than the second tier generally cannot recover, so knowing your tier on a federal job matters before you rely on the bond.
What are the Miller Act deadlines?
A claimant without a direct contract with the prime must give written notice within 90 days of last furnishing labor or materials. Any Miller Act suit must be filed within one year of that last date. Missing either window typically bars the claim, so both dates are tracked from day one.
What's the difference between the Miller Act and a Little Miller Act?
The Miller Act governs federal construction contracts, requiring payment and performance bonds above a threshold. States enacted their own 'Little Miller Act' statutes to require similar bonds on state and local public works. Deadlines and thresholds vary by state, so the applicable statute depends on who owns the project.
Does the Miller Act apply to every federal project?
It applies to most federal construction, alteration, or repair contracts above the statutory threshold of $150,000, with a payment-protection alternative available for smaller contracts. Supply-only or service contracts generally fall outside it, so confirm the project type before assuming bond coverage exists.
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