The Miller Act applies to all contracts greater than $100,000 for “the construction, alteration, or repair of any public building or public work” where the federal government is the owner. To Which Contracts Does the Miller Act Apply? As explained below, the Miller Act provides a claim mechanism under which a qualified subcontractor or supplier can file a claim against the surety and the contractor pursuant to the payment bond in order to recover unpaid amounts. Miller Act payment bond claims are a powerful tool for assuring payment for qualified claimants on federal construction projects. This article addresses the applicability of the Miller Act to specific claimants in the chain of privity and the required procedures and timing that these claimants must adhere to for asserting payment bond claims. Performance bonds protect the government (the bond’s obligee) in case the contractor (the bond’s principal) defaults on the work, while payment bonds protect both the government and downstream subcontractors and suppliers in the event the contractor defaults on its payment obligations. Such bonds, issued by sureties, provide a source of guaranty for the performance of the work and payment of subcontractors and suppliers. The Miller Act is a federal statute that requires prime contractors on most federal construction projects to furnish payment and performance bonds, each with a value equivalent to the contract price.
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