Payment bond rights under your state’s Little Miller Act statute are not easily avoided. Little Miller Act statutes allow subcontractors and lower-tiered parties to make claims against the payment bond that every general contractor must post for public projects. This process guarantees a certain level of protection for subs while…Read More
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The U.S. Miller Act gives subcontractors, suppliers, and laborers a bond claim on federal projects. The Act requires that a payment bond be posted by the prime contractor for every federal project. Think of the bond as a pile of money. When a contractor or subcontractor goes unpaid, they have…Read More
Payment bonds are meant to be for the benefit of subcontractors and suppliers, generally speaking. Bonds are piles of money put up by the general contractor or owner of a property. Subcontractors and suppliers may submit claims against the pile of money for lack of payment. This process avoids hold…Read More
Under the Miller Act, a party is limited to a one year period to file suit against a payment bond to recover payment. This one year period may be extended for very limited circumstances. The reason for these limited circumstances is because to allow an extension of the one year period alters…Read More
We talk a lot about mechanics liens and their benefits, but what happens if you are working on a public project and are unable to file a mechanics lien against the property?
That is where bond claims come in. Many people become confused about whether to file a mechanics lien or bond…Read More
In Arizona, every party without a direct contract with the general contractor is required to give a preliminary notice within 20 days of the party’s first furnishing of labor and/or materials in order to preserve the right to make any necessary future bond claim. While the failure to provide the notice within the…Read More
The construction payment process has a fairness problem. All too often, construction payment fairness is marginalized by parties leveraging their respective positions on the contracting chain, in an attempt to gain some sort of real or perceived advantage. Slow payments, over-reaching lien waivers, the risk of non-payment or default, and…Read More
It’s unambiguous that Texas law requires a payment bond be posted for all construction projects exceeding $25,000 in value. It’s unambiguous that the new Kilgore Baseball Complex project in Kilgore, Texas exceeds this value. Nevertheless, the Kilgore city council has voted to purposefully not follow the law.
Let’s repeat that: The Kilgore…Read More
Generally speaking, when a party performs work on a public works project, the necessary remedy for non-payment is to make a claim against the payment bond. Similarly to the mechanics lien right available on private projects, a bond provides security to ensure payment of parties working on the project. Unlike…Read More
In the world of surety bonds, payment bonds are often the overlooked siblings of performance bonds.
As explored in a previous frequently asked questions post — The Difference Between Payment and Performance Bonds — performance bonds are placed to protect those up the contracting chain against non-performance by those below the…Read More