Miller Act
In the United States, the Miller Act (1935) is a federal law that requires contractors bidding on government construction projects to obtain a performance bond and a payment bond that covers all labour and materials. This acts as a surety guaranteeing their performance and payments to subcontractors and suppliers.
The Act applies to all public works contracts that exceed $100,000. The Federal Acquisition Regulation can require additional protection or bonds on contracts that are between $25,000-100,000.
Several states have adapted the Act for use at the state level and these are often referred to as ‘Little Miler Acts’.
The purpose of the Miller Act was to protect subcontractors, suppliers and second-tier claimants when working on government projects from non-payment. The United States Treasury issues certifications to qualified corporate surety companies that are able to issue the bonds.
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