If you are in the construction industry, it’s important to familiarize yourself with the Miller Act. Chances are, you’ve already dealt with the Miller Act if you’re a contractor, subcontractor, or supplier who has worked on federal projects. Miller Act bonds, as they’re typically referred to, are one of the most commonly used surety bonds out there. In this post, we’ll take a look at some of the key features of the Miller Act, so you can be comfortable taking on federal construction improvement projects.
What is the Miller Act?
The Miller Act is a law requiring general contractors who are working on federal construction projects to post both a performance bond and a payment bond. This applies to any construction, repairs, or alterations of federal projects on contracts of more than $100,000. These bonds must be secured before the contract is awarded. In addition, the surety that supplies you with the performance and payment bonds must be listed as a qualified surety on the U.S. Department of the Treasury’s Listing of Approved Sureties.
Why is the Miller Act Used?
The Miller Act has been used since 1935 to protect the federal government from contractors who fail to deliver what they promise to do. The performance bond protects the government’s interest in the project at hand, while the payment bond protects the suppliers of materials and labor in the event of a payment issue. In conjunction, these two bonds ensure that the parties who have invested in the project are protected from project failures. The Miller Act, however, does not provide protections for the general contractor.
Who Do I Turn to for Miller Act Bonds?
Viking Bond Service is qualified and experienced at supplying construction contractors with Miller Act compliant surety bonds. We’re committed to providing general contractors with the surety they need to win federal project bids so that the federal government can have confidence in your ability to deliver. If you’re in the construction industry and are looking to acquire Miller Act compliant performance and payment bonds, contact Viking Bond Service at 888-278-7389 or start an application online. We’re happy to help you take care of all your surety bond needs.