Little Miller Act

A "Little Miller Act" is a U.S. state statute, based upon the federal Miller Act, that requires prime contractors on state construction projects to post bonds guaranteeing the performance of their contractual duties and/or the payment of their subcontractors and material suppliers.

Typical statutory provisions

Little Miller Acts typically require the posting of a performance bond, a type of surety bond that covers the cost of substitute performance if the prime contractor fails to fully perform his duties under the contract.

Little Miller Acts also typically require the posting of a payment bond, which provides an alternate source of payment to the subcontractors and material suppliers who worked on the job. If the claimant did not have a direct contractual relationship with the prime contractor, the claimant is typically required to give some form of notice to the prime contractor within a specified time after the completion of the work to preserve the right to make a claim against the payment bond. The purpose of the notice requirement is to give the prime contractor an opportunity to withhold payment to the first-tier subcontractor and otherwise encourage payment to the claimant.

Purpose and function

Little Miller Acts address two concerns that would otherwise exist in the performance of state government construction projects:

Performance Bonds: The contractor's abandonment or other non-performance of a government job may cause critical delays and added expense in the government procurement process. The bonding process helps weed out irresponsible contractors while the bond itself defrays the government's cost of substitute performance. The subrogation right of the bond surety against the contractor (i.e., the right to sue for indemnification) is a deterrent to non-performance. Bond sureties often require additional security, including personal guarantees by principals of the prime contractor, to protect themselves in the event that the prime contractor ceases doing business simultaneous with the default. This provides the prime contractor's principals with additional incentive to ensure the project is completed. Payment Bonds: Subcontractors and material suppliers would otherwise be reluctant to work on such projects (knowing that sovereign immunity prevents the establishment of a mechanic's lien) - decreasing competition and driving up construction costs.

Little Miller Acts by State

Alabama Alabama Code, Title 39, Public Works, §39-1-1

{| class="wikitable" |- | Performance Bond Required: || All public works projects, 100% of contract price (Sec. 39-1-1(a)); Not required on projects under $50,000.00 (§39-1-1(e)) |- | Payment Bond Required: || All public works projects, 50% of contract price (§39-1-1(a)); Not required on projects under $50,000.00 (§39-1-1(e)) |- | Entitlement to Copy of Bond: || (§39-1-1(c)) |- | Enforcement: || (§39-1-1(b)). |- | Limitations: || One year from date of settlement of contract (§39-1-1(b)) |- | Notice Requirements: || 45 days' notice to surety required prior to suit (§39-1-1(b)) |- | Other: || Venue allowed in county where the project was located, or where otherwise provided by law (§39-1-1(c)); Attorneys fees and interest allowed if unpaid on 45-day notice (§39-1-1(c)); Contractor must advertise notice of contract settlement (§39-1-1(f)).

Alaska Alaska Statutes, Title 36, Public Contracts, Chapter 36.25, Contractors' Bonds, Sections 36.25.010 through 36.25.025

{| class="wikitable" |- | Performance Bond Required: || All public works contracts over $100,000.00. equal to the amount of the payment bond (§36.25.010(a)(1)) |- | Payment Bond Required: || All public works contracts over $100,000.00, equal to 1/2 the amount of the contract if contract amount not more than $1,000,000.00, equal to 40% of the contract if contract amount not more than $5,000,000.00, equal to $2,500,000.00 if contract amount more than $5,000,000.00 (§36.25.010(a)(2)) |- | Entitlement to Copy of Bond: || [Information Needed] |- | Enforcement: || Suit if not paid within 90 days of last work (§36.25.020(a)) |- | Limitations: || One year from settlement of contract (§36.25.020(c)) |- | Notice Requirements: || Second tier subcontractors must give notice to contractor within ninety days of last work (§36.25.020(b)) |- | Other: || Certification of payment by contractor required on projects not requiring a payment bond (§36.25.010(c)); Suit brought in the name of the government for the use of the claimant (§36.25.020(c)); Exemptions for municipalities contracts not exceeding $400,000.00 (§36.25.025);

Arizona Arizona Revised Statutes, Title 34, Public Buildings and Improvements, Article 2, Contracts, Sections 34–222, 34-223 and 34-224

{| class="wikitable" |- | Performance Bond Required: || Full contract amount (§34-222(A)(1)); Bond language specified (§34-222(G)) |- | Payment Bond Required: || Full contract amount (§34-222(A)(2)); Bond language specified (§34-222(F)) |- | Entitlement to Copy of Bond: || Upon representation of non-payment or participation in litigation(§34-223(C)) |- | Enforcement: || Suit if unpaid 90 days after last work (§34-223(A)); Attorney's fees (§34-222(B)) |- | Limitations: || One year from last work (§34-223(C)) |- | Notice Requirements: || Second tier subs must give 20-day notice within 90 days of last work (§34-223(A)) |- | Other: || Bond surety cannot be individual and must be license by the Dept. of Insurance (§34-222(C) and bond placed on file with contracting agency (§34-222(D))

Arkansas Arkansas Statutes, Title 22, Public Property, Chapter 9, Public Works, Subchapter 4, Contractors' Bonds, Sections 22-9-401 through 22-9-405

{| class="wikitable" |- | Performance Bond Required: || [Information Needed] |- | Payment Bond Required: || [Information Needed] |- | Entitlement to Copy of Bond: || [Information Needed] |- | Enforcement: || [Information Needed] |- | Limitations: || [Information Needed] |- | Notice Requirements: || [Information Needed] |- | Other: || [Information Needed]

California California Civil Code, Title 3, Public Work of Improvement, Chapters 4 and 5, Payment Bond for Public Works, Sections 9558, 9502, 9204, 9358, and 9356; California Public Contract Code, Part 2, Ch. 1, Art. 7, Contract Requirements, Sections 10220 through 10230

{| class="wikitable" |- | Performance Bond Required: || Typically full contract price (§10222) |- | Payment Bond Required: || All public works contracts more than $25,000.00 (§3247(a)); Typically 1/2 of contract amount (§3248(a)); Not required for architects/engineers (§3247(c)) |- | Entitlement to Copy of Bond: || Not specified |- | Enforcement: || (§3252) |- | Limitations: || Six months within the time stop notices must be filed (§3249) |- | Notice Requirements: || (§3252) |- | Other: || Attorney's fees (§3248(b)); See, Stop Notice provisions (§§9350-9510)

Colorado Colorado Revised Statutes, Title 24, Government, State, Article 105, Colorado Procurement Code – Construction Contracts, Sections 24-105-201 through 24-105-203; Title 38, Property – Real and Personal, Article 26, Liens – Contractors' Bonds and Lien on Funds, Sections 38-26-101 and 38-26-105 through 38-26-110

Connecticut Connecticut General Statutes, Title 49, Mortgages and Liens, Chapter 847, Liens, Sections 49-41 through 49-43

Delaware Delaware Code, Title 29, State Government, Budget, Fiscal, Procurement and Contracting Regulations, Chapter 69, State Procurement, Subchapter IV, Public Works Contracting, Section 6962

District of Columbia District of Columbia Code, Title 2, Government Administration, Chapter 2, Contracts, Subchapter 1, Bonding Requirement, Sections 2-201.01 through 2-201.03, and 2-201.11

{| class="wikitable" |- | Performance Bond Required: || [100,000] |- | Payment Bond Required: || [25,000] |- | Entitlement to Copy of Bond: || [Information Needed] |- | Enforcement: || [Information Needed] |- | Limitations: || [Information Needed] |- | Notice Requirements: || [Information Needed] |- | Other: || [Information Needed]

Florida Florida Statutes, Title XVIII, Public Lands and Property, Chapter 255, Public Property and Publicly Owned Buildings, Section 255.05

{| class="wikitable" |- | Performance Bond Required: || All public construction, works, or repair, over at least $100,000 (possible exemption up to $200,000, at the contract issuer's discretion, s. 255.05 4(d)). Full amount of contract, up to $250 million, with "largest amount reasonably available" for larger projects (s. 255.05 4(g)). |- | Payment Bond Required: || All public construction, works, or repair, over at least $100,000 (possible exemption up to $200,000, at the contract issuer's discretion, s. 255.05 4(d)). Full amount of contract, up to $250 million, with "largest amount reasonably available" for larger projects (s. 255.05 4(g)). |- | Entitlement to Copy of Bond: || Bond must be |- | Enforcement: || [Information Needed] |- | Limitations: || [Information Needed] |- | Notice Requirements: || [Information Needed] |- | Other: || [Information Needed]

Georgia Georgia Code, Title 13, Contracts, Chapter 10, Contracts for Public Works, Sections 13-10-1 – 13-10-2 and 13-10-40 through 13-10-65; Title 36, Local Government Provisions Appliable to Counties, Municipal Corporations, and Other Governmental Entities, Chapter 91, Public Works Bidding Sections 36-91-1 – 36-91-2, 36-91-40 and 36-91-70 through 36-91-95

{| class="wikitable" |- | Performance Bond Required: || All public works construction contracts greater than $100,000.00. Bond shall be in the amount of at least the total amount of the contract and shall be increased as the contract amount is increased (§ 36-91-70, § 13-10-40) |- | Payment Bond Required: || All public works construction contracts greater than $100,000.00. Bond shall be in the amount of at least the total amount of the contract and shall be increased if requested by the governmental entity as the contract amount is increased (§ 36-91-90, § 13-10-60) |- | Entitlement to Copy of Bond: || Upon submission of affidavit stating that applicant has supplied labor or materials for and payment has not been made or stating that applicant is being sued on the bond (§ 36-91-94, § 13-10-64) |- | Enforcement: || [Information Needed] |- | Limitations: || One year from the completion of the contract and the acceptance of the public work by the governmental entity (§ 36-91-72, § 36-91-95, § 13-10-65, § 13-10-42) |- | Notice Requirements: || Contractor shall provide notice within 15 days after commencing work on the project and supply a copy of the notice to any person who makes a written request within ten calendar days of receipt of the written request (§ 36-91-92(a), § 13-10-62(a)) |- | Other: || [Information Needed]

Hawaii Hawaii Revised Statutes, Chapter 103D, Hawaii Public Procurement Code, Part III, Source Selection and Contract Formation, Sections 103D-323 through 103D-325

Little Miller Act

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