The Miller Act requires individuals to obtain a specific type of bond before being awarded a contract for constructing or repairing a public building. This bond serves as a guarantee that the contractor will perform the work diligently and compensate all those who contributed to the project. Essentially, it is a commitment to execute the task correctly and prioritize the well-being of all parties involved.
The Miller Act is a federal law that mandates contractors to secure performance and payment bonds prior to being awarded a contract for the construction, alteration, or repair of a public work or building. This legislation was implemented to safeguard the rights of subcontractors and suppliers who may not receive compensation for their services if the contractor defaults on the project. For instance, if a construction company is granted a contract to construct a new courthouse, they must furnish a performance bond and a payment bond before commencing work. The performance bond ensures that the contractor will fulfil the project in accordance with the contract specifications, while the payment bond guarantees that subcontractors and suppliers will be remunerated for their contributions. Another example would be if a contractor is hired to repair a government-owned bridge. They would be required to obtain the necessary bonds prior to initiating the project to ensure the protection of all parties involved. These examples exemplify how the Miller Act functions to safeguard the interests of subcontractors and suppliers by mandating contractors to provide financial security prior to commencing work on a public project.
The Miller Act is a federal law that requires contractors to provide payment and performance bonds for construction projects valued at $100,000 or more on federal properties.
The Miller Act applies to prime contractors who are awarded contracts for federal construction projects, as well as their subcontractors and suppliers.
The Miller Act aims to protect subcontractors and suppliers by ensuring they receive payment for their work on federal construction projects, even if the prime contractor defaults or fails to pay them.
A payment bond is a type of surety bond that guarantees subcontractors and suppliers will be paid for their work on a federal construction project if the prime contractor fails to make payment.
A performance bond is a type of surety bond that guarantees the prime contractor will complete the federal construction project according to the terms of the contract.
To make a claim under the Miller Act, subcontractors and suppliers must provide written notice to the prime contractor and the surety within a specified timeframe, usually within 90 days of the last date of work or delivery of materials.
Subcontractors and suppliers must file a lawsuit to enforce their rights under the Miller Act within one year from the date of the last work or delivery of materials.
Failure to provide timely notice under the Miller Act may result in the loss of your right to make a claim. However, there may be exceptions or extenuating circumstances that could allow for a late notice.
Yes, the Miller Act allows subcontractors and suppliers who have a direct contractual relationship with the prime contractor or a subcontractor to make a claim for payment.
No, the Miller Act prohibits contractors from requiring subcontractors and suppliers to waive their rights to make a claim for payment or to waive their rights under the Act. Any such waiver is generally considered void and unenforceable.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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