The Act requires bonds on federal contracts exceeding a statutory threshold. Payment bond claimants must give notice within ninety days of last labor or material if they lack a direct contract with the prime, and sue within one year.
Second-tier subcontractors are covered; third-tier generally are not.
Alternative Names:
Miller Act Bond|Federal Payment Bond Act
Why it Matters?
The tier limitation excludes suppliers to suppliers, which surprises claimants who assume any unpaid party on a federal project has bond recourse. Establishing the contractual chain determines coverage before any notice analysis. The ninety-day notice and one-year suit deadlines are jurisdictional in effect, and informal payment discussions during those periods do not toll them.
Frequently Confused with
Related terms
Frequently asked questions
Which claimants are covered?
Do payment discussions toll the deadlines?
