The Bond

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Each state has rules governing certain aspects of public projects within the state. Since public property is shielded from being encumbered by mechanics liens, these bond requirements for public works projects provide alternative security to protect construction participants against nonpayment. If unpaid on a public project subject to the Little Miller Act bond requirements, the supplier or subcontractor can make a claim against the payment bond. If the prime contractor is unable to fully perform their contractual requirements on the project for some reason, then the state can look to the performance bond for compensation to get the project finished.

Who has requirements under Little Miller Acts? Like the federal Miller Act, the Little Miller Acts of each state set forth requirements for parties who have contracted directly with the public entity for whom the work of improvement is being undertaken.

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Who is protected by Little Miller Acts? However, broadly speaking, protection is extended to first and second tier subs and suppliers or equipment rental companies. Unlike the federal Miller Act, protection under Little Miller Acts may also extend to parties lower than the second-tier, but this is state dependent. It is unusual for suppliers to suppliers to qualify for Little Miller Act protection.

When are Little Miller Acts and their protections used?

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As mentioned above, Little Miller Acts provide an alternative to mechanics lien protection against nonpayment on public projects, since public property is shielded from liens. This means that in order for Little Miller Act bonding requirements to apply, the underlying project must be on public property and, generally, originally contracted for by a public entity.

Also as noted above, there are often monetary thresholds for the original contract, below which the requirements of a Little Miller Act do not apply. Some states require payment bonds to be furnished for the protection of sub-tier parties on every public works project, but in many states the project has to be of a significant size in order for the requirements to apply. This can be a complex issue, and is dependent on the laws of the state in which the project is located.

Do Little Miller Act requirements and protections change according to the project location? Little Miller Act requirements and protections vary from state to state. Just like mechanics lien rules and requirements, the procedures governing claims against bonds on public works are also set by the state in which the project was located.

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Do Little Miller Act requirements and protections change according to the project type? Kind of. As noted above, Little Miller Act requirements only apply to public projects, so private works of improvement are not subject to these rules.

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Also as noted above, the applicability of the rules with respect to P3 projects is a confusing gray area, with no hard and fast rules. Besides the above, however, some states have different requirements depending on the specific type of the underlying public project. For example, a public university project may be subject to different requirements than a highway project, or a municipal school project. What happens if I make a mistake with respect to Little Miller Act requirements? Modifying the language does not modify the selected country and currency. Select from the options below. The Bond bag Named for both its light silver stud buttons as well as for the contents it holds together, the Bond bag is the first tote bag designed by Clare Waight Keller and inspired by the designer's own travel-intensive lifestyle.

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