The Miller Act
Federal construction projects come with strict bonding rules that can affect eligibility to win work, cash flow during the job, and how payment disputes get resolved. Understanding the Miller Act helps contractors anticipate when bonds will be required, how bond amounts are set, and what obligations flow down to subcontractors and suppliers on bonded jobs.
As you prepare to bid on federal construction projects, review our guide to the Miller Act.
What Is the Miller Act?
The Miller Act is the federal law that requires payment and performance bonds on many federal construction contracts exceeding $100,000, which protects the government and the businesses that supply labor and materials.
The Miller Act is codified at 40 U.S.C. §§ 3131–3134 and was enacted in 1935, following the Heard Act of 1894. In general, it requires a prime contractor on qualifying federal public work to furnish two bonds, a performance bond and a payment bond, before award.
In federal contracting, the Federal Acquisition Regulation (FAR) implements these requirements and sets related bonding and payment-protection rules.
What Projects Does the Miller Act Apply To?
The Miller Act applies to federal contracts for the construction, alteration, or repair of public buildings or public works when the contract amount is over the statutory threshold.
What Is the Miller Act’s Statutory Threshold?
Under 40 U.S.C. § 3131(b), the bonding requirement applies before any federal public building or public work contract of more than $100,000 is awarded. However, federal solicitations and contracts commonly apply the FAR’s construction-bond threshold, which generally requires performance and payment bonds when the contract is expected to exceed $150,000.
What Bonds Does the Miller Act Require?
The Miller Act generally requires two bonds on covered federal construction contracts: a performance bond and a payment bond.
- Performance bond: A performance bond secures the contractor’s performance and fulfillment of the contractor’s obligations under the contract, which primarily protects the federal government.
- Payment bond: A payment bond assures payments, as required by law, to people supplying labor or materials for the work under the contract.
How Does the FAR Implement the Miller Act?
The FAR sets the practical bond threshold. Under FAR 28.102-1, performance and payment bonds are required for construction contracts exceeding $150,000 (with limited exceptions such as certain foreign-country performance).
Why Does the Miller Act Exist?
Since federal property generally cannot be liened like a private job, the Miller Act uses payment bonds to protect subcontractors and suppliers on federal construction projects.
On many private construction projects, parties may rely on state lien laws to help secure payment. On federal public work, the Miller Act’s payment bond framework is intended to provide a practical substitute, so qualifying subs and suppliers have a statutory remedy if they are not paid.
What Are the Little Miller Acts?
Little Miller Acts are state and local public works bond statutes that mirror the Miller Act concept, requiring payment and performance bonds on many public projects.
Most states and some local jurisdictions have their own bonding statutes for public work, including the District of Columbia and Puerto Rico. While these laws often share the same basic goal, protecting public owners and providing payment remedies for subs and suppliers, the details vary by jurisdiction.
How Do Little Miller Acts Differ From the Federal Miller Act?
Little Miller Acts often look similar, but the thresholds, notice requirements, deadlines, claim procedures, and who is protected can vary by state.
Some jurisdictions require bonds at lower contract values than the federal standard. Others change how notices must be served, how long a claimant has to take action, and what bond forms can or cannot require.
For example, in Florida, when work is done for the state and the contract amount is less than $100,000, a performance and payment bond is not required. Additionally, Florida Statutes Section 255.05 states that contracts for $200,000 or less may be exempted from executing a payment and performance bond at the discretion of the official or board awarding such contract.
Receive a Payment or Performance Bond From ProSure Group
If you’re bidding on federal public work or a state and local project that requires bonds, ProSure Group can help you review the requirements and secure the right payment and performance bond quickly. Once you contact one of our bond specialists, we’ll help you determine whether you’ll need a bond. When you do, we’ll match you with a bond that meets the owner’s requirements and complete the underwriting process as quickly as possible to help you stay on schedule.
Learn more about our payment and performance bonds today.
Miller Act Statutes and Regulations
Below are links to the Miller Act Statute as well as a link to the FAR Subpart.
Miller Act Statute
Title 40 - Public Buildings, Property, and Works
Subtitle II - Public Building and Works
Part A - General
Chapter 31 - General
Subchapter III - Bonds
U.S. Code Section 3131: Bonds of contractors of public buildings or works
U.S. Code Section 3132: Alternatives to payment bonds provided by Federal Acquisition Regulation
U.S. Code Section 3133: Rights of persons furnishing labor or material
U.S. Code Section 3134: Waivers for certain contracts
Federal Acquisition Regulation (FAR)
Code of Federal Regulations
Title 48 - Federal Acquisition Regulations System
Chapter 1 - Federal Acquisition Regulation
Subchapter E - General Contracting Requirements
Part 28 - Bonds and Insurance
Florida Statutes
Title XVIII - Public Lands and Property
Chapter 255 - Public Property and Publicly Owned Buildings
Section 05 - Bond of contractor constructing public buildings; form; action by claimants.