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Little Miller Act

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Little Miller Act

A "Little Miller Act" is a U.S. state statute, based upon the federal Miller Act, that requires prime contractors on state construction projects to post bonds guarantying the performance of their contractual duties and/or the payment of their subcontractors and material suppliers.

Contents

Typical statutory provisions

Little Miller Acts typically require the posting of a performance bond, a type of surety bond that covers the cost of substitute performance if the prime contractor fails to fully perform his duties under the contract.

Little Miller Acts also typically require the posting of a payment bond, which provides an alternate source of payment to the subcontractors and material suppliers who worked on the job. If the claimant did not have a direct contractual relationship with the prime contractor, the claimant is typically required to give some form of notice to the prime contractor within a specified time after the completion of the work to preserve the right to make a claim against the payment bond]. The purpose of the notice requirement is to give the prime contractor an opportunity to withhold payment to the first-tier subcontractor and otherwise encourage payment to the claimant.

Purpose and function

Little Miller Acts address two concerns that would otherwise exist in the performance of state government construction projects:

  1. Performance Bonds: The contractor's abandonment or other non-performance of a government job may cause critical delays and added expense in the government procurement process. The bonding process helps weed out irresponsible contractors while the bond itself defrays the government's cost of substitute performance. The subrogration right of the bond surety against the contractor (i.e., the right to sue for indemnification) is a deterrent to non-performance.
  2. Payment Bonds: Subcontractors and material suppliers would otherwise be reluctant to work on such projects (knowing that sovereign immunity prevents the establishment of a mechanic's lien) - decreasing competition and driving up construction costs.

Alabama

Alabama Code, Title 39, Public Works, §39-1-1

Alaska

Alaska Statutes, Title 36, Public Contracts, Chapter 36.25, Contractors' Bonds, Sections 36.25.010 through 36.25.025

Arizona

Arizona Revised Statutes, Title 34, Public Buildings and Improvements, Article 2, Contracts, Sections 34–222, 34-223 and 34-224

Arkansas

Arkansas Statutes, Title 22, Public Property, Chapter 9, Public Works, Subchapter 4, Contractors' Bonds, Sections 22-9-401 through 22-9-405

California

California Civil Code, Title 3, Public Work of Improvement, Chapters 4 and 5, Payment Bond for Public Works, Sections 9558, 9502, 9204, 9358, and 9356; California Public Contract Code, Part 2, Ch. 1, Art. 7, Contract Requirements, Sections 10220 through 10230

Colorado

Colorado Revised Statutes, Title 24, Government, State, Article 105, Colorado Procurement Code – Construction Contracts, Sections 24-105-201 through 24-105-203; Title 38, Property – Real and Personal, Article 26, Liens – Contractors' Bonds and Lien on Funds, Sections 38-26-101 and 38-26-105 through 38-26-110

Connecticut

Connecticut General Statutes, Title 49, Mortgages and Liens, Chapter 847, Liens, Sections 49-41 through 49-43

Delaware

Delaware Code, Title 29, State Government, Budget, Fiscal, Procurement and Contracting Regulations, Chapter 69, State Procurement, Subchapter IV, Public Works Contracting, Section 6962

District of Columbia

District of Columbia Code, Title 2, Government Administration, Chapter 2, Contracts, Subchapter 1, Bonding Requirement, Sections 2-201.01 through 2-201.03, and 2-201.11

Florida

Florida Statutes, Title XVIII, Public Lands and Property, Chapter 255, Public Property and Publicly Owned Buildings, Section 255.05

Georgia

Georgia Code, Title 13, Contracts, Chapter 10, Contracts for Public Works, Sections 13-10-1 – 13-10-2 and 13-10-40 through 13-10-65; Title 36, Local Government Provisions Appliable to Counties, Municipal Corporations, and Other Governmental Entities, Chapter 91, Public Works Bidding Sections 36-91-1 – 36-91-2, 36-91-40 and 36-91-70 through 36-91-95

Hawaii

Hawaii Revised Statutes, Chapter 103D, Hawaii Public Procurement Code, Part III, Source Selection and Contract Formation, Sections 103D-323 through 103D-325

Idaho

Idaho Code, Title 54, Professions, Vocations and Businesses, Chapter 19, Public Works Contractors, Sections 54-1925 through 54-1930

Illinois

Illinois Compiled Statutes, Government, Chapter 30, Finance – Purchases and Contracts, Sections 550/0.01 through 550/3, Public Construction Bond Act

Indiana

Indiana Code, Title 4, State Offices and Administration, Article 13.6, State Public Works, Chapter 7, Bonding, Escrow and Retainages, sections 4-13.6-7-5 through 4-13.6-7-12; Title 5, State and Local Administration, Article 16, Public Works, Chapter 5, Withholding and Bond to Secure Payment of Subcontractors, Labor and Materialmen; Chapter 5.5, Retainage, Bonds, and Payment of Contractors and Subcontractors, sections 5-16-5.5-1 through 5-16-5.5-8

Iowa

Iowa Code, Title XIV, Property, Subtitle 3, Liens, Chapter 573, Labor and Material on Public Improvements, sections 573.1 through 573.227; See also, Iowa Code, Title XV, Judicial Branch and Judicial Procedures,Subtitle 3, Judicial Procedure, Chapter 616, Place of Bringing Actions, section 616.15, Surety Companies

Kansas

Kansas Statutes, Chapter 16, Contracts and Promises, Article 19, Kansas Fairness in Public Construction Contract Act, sections 16-1901 through 16-1908; Chapter 60, Civil Procedure, Article 11, Liens for Labor and Material, sections 60-1110 & 60-1112; Chapter 68, Roads and Bridges, Part I, Roads, Article 5, County and Township Roads, sections 68-410, 68-521 and 68-527a

Kentucky

Kentucky Revised Statutes, Chapter 45A, Kentucky Model Procurement Code, sections 45A.185, 45A.190, 45A.195, 45A.225 through 45A.265, and 45A.430 through 45A.440; See also, Kentucky Revised Statutes, Title XXVII, Chapter 341, Unemployment Compensation, section 341.317

Louisiana

Louisiana Revised Statutes, Title 38, Public Contracts, Works and Improvements, Chapter 10, Public Contracts, sections 38:2181 – 38:2247; Title 48, Roads, Bridges and Ferries, Chapter 1, Department of Transportation and Development, sections 48:250 – 48:256.12

Maine

Maine Revised Statutes, Title 14, Court Procedure – Civil, Part 2, Proceedings Before Trial, Chapter 205, Limitation of Actions, Subchapter 3, Miscellaneous Actions, Section 871

Maryland

Maryland Code, State Finance and Procurement Law, Division II, General Procurement Law, Title 17, Special Provisions – State and Local Subdivisions, Subtitle 1, Security for Construction Contracts, Sections 101 through 111

Massachusetts

Massachusetts General Laws, Part I, Administration of the Government, Title XXI, Labor and Industries, Chapter 149, Labor and Industries, Section 29

Michigan

Michigan Compiled Laws Annotated §§ 129.201–129.212 and §§ 570.101–570.101 (2008); Chapter 129, Public Funds, Act 213 of 1963 (as amended), Contractor's Bond for Public Buildings or Works; Chapter 570, Liens, Act 187 of 1905 (as amended), Public Buildings and Public Works; Bond of Contractor

Minnesota

Minnesota Statutes, Chapter 574, Bonds, Fines, Forfeitures, Sections 26 through 32

Mississippi

Mississippi Code, Title 31, Public Business, Bonds and Obligations, Chapter 5, Public Works Contracts, Sections 31-5-51 through 31-5-57, Bonds Securing Public Works Contracts; See also, Miss. Code §§ 31-5-25 through 31-5-31 (prompt payment provisions)

Missouri

Missouri Revised Statutes, Title VIII, Chapter 107, Section 107.170; Title XIV, Chapter 227, Sections 227.100, 227.600 and 227.633; Chapter 229, Sections 229.050, 229.060 and 229.070; Title XXXVI, Chapter 522, Section 522.300

Montana

Montana Code Annotated, Title 18, Public Contracts, Chapter 2, Construction Contracts, Part 2, Performance, Labor and Materials Bond, Sections 18-2-201through 18-2-208

Nebraska

Nebraska Revised Statutes, Chapter 52, Liens, Sections 52-118 through 52-118.02

Nevada

Nevada Revised Statutes, Title 28, Public Works and Planning, Chapter 339, Contractors' Bonds on Public Works, Sections 339.015 through 339.065

New Hampshire

New Hampshire Revised Statutes, Title XLI, Liens, Chapter 447, Liens for Labor and Materials; Public Works, Sections 447:15 through 447:18

New Jersey

New Jersey Revised Statutes, Title 2A, Administration of Civil and Criminal Justice, Chapter 44, Sections 2A:44-143 through 2A:44-148

New Mexico

New Mexico Statutes, Chapter 13, Public Purchases and Property, Article 4, Public Works Contracts, Sections 13-4-18 through 13-4-20

New York

New York Consolidated Laws, State Finance Law, Article 9, Contracts, §137

North Carolina

North Carolina General Statutes, Chapter 44A, Statutory Liens and Charges, Article 3, Model Payment and Performance Bond, Sections 44A-25 through 44A-35

North Dakota

North Dakota Century Code, Title 48, Public Buildings, Chapter 48-01.2, Public Improvement Bids and Contract, Sections 48-01.2-01, 48-01.2-09 through 48-01.2-12 and 48-01.2-23

Ohio

Ohio Revised Code, Title I, State Government, Chapter 153, Public Improvements, Sections 153.54 through 153.581

Oklahoma

Oklahoma Statutes, Title 61, Public Buildings and Public Works, Sections 61-1, 61-2, 61-13 and 61-15; Title 61, Public Competitive Bidding Act of 1974 (as amended), Section 61-112

Oregon

Oregon Revised Statutes, Title 26, Public Facilities, Contracting and Insurance, Chapter 279C, Public Contracting – Public Improvements and Related Contracts, Sections 279C.380 through 279C.390, 279C.515, and 279C.600 through 279C.625

Pennsylvania

Pennsylvania Statutes, Title 8, Bonds and Recognizances, Chapter 13, Public Works Contractors' Bonds, Sections 191 through 202

Puerto Rico

Puerto Rico Laws, Title 22, Public Works, Chapter 3, Public Works Contracts, Sections 47 through 58

Rhode Island

Rhode Island General Laws, Title 37, Public Property and Works, Chapter 37-12, Contractors' Bond, Sections 37-12-1 through 37-12-11

South Carolina

S.C. Code, Title 11, Public Finance, Chapter 35, South Carolina Consolidated Procurement Code, Article 9, Construction, Architect-Engineer, Construction Management, and Land Surveying Services, Subarticle 3, Construction Services, Section 11-35-3030

South Dakota

South Dakota Codified Laws, Title 5, Public Property, Purchases and Contracts, Chapter 21, Performance Bonds for Public Improvement Contracts, Sections 5-21-1 through 5-21-8

Tennessee

Tenn. Code, Title 12, Public Property, Printing and Contracts, Chapter 4, Public Contracts, Part 2 – Surety Bonds, Sections 12-4-201 through 12-4-206

Texas

Texas Government Code, Title 10, General Government, Subtitle F, State and Local Contracts and Fund Management, Chapter 2253, Sections 2253.001 through 2253.076; Texas Property Code, Title 5, Exempt Property and Liens, Subtitle B, Liens, Chapter 53, Mechanic's, Contractor's or Materialman's Lien, Subchapter J, Lien or Money Due Public Works Contractor, Sections 53.231 through 53.237

Utah

Utah Code, Title 14, Contractors' Bonds, Chapter 1, Public Contracts, Sections 14-1-18 through 14-1-20; Title 38, Liens, Chapter 1, Mechanics' Liens, Section 38-1-32; Title 63G, General Government, Chapter 6, Utah Procurement Code, Sections 63G-6-504 through 63G-6-507

Vermont

Vermont Statutes, Title 19, Highways, Chapter 1, State Highway Law, Section 10, Duties; See also, Title 16, Education, Chapter 123, State Aid for Capital Construction Costs, § 3448

Virginia

Virginia Code, Title 2.2, Administration of Government, Chapter 43, Virginia Public Procurement Act, Sections 2.2-4336 through 2.2-4342

Washington

Washington Revised Code, Title 39, Public Contracts and Indebtedness, Chapter 39.08, Contractor's Bond, Sections 39.08.010 through 39.08.100

West Virginia

West Virginia Code, Chapter 5, General Powers and Authority of the Governor, Secretary of State and Attorney General; Board of Public Works; Miscellaneous Agencies, Commissions, Offices, Programs, Etc., Article 22, Government Construction Contracts, Sections 5-22-1 and 5-22-2; Chapter 38, Liens, Article 22, Mechanics' Liens, Section 38-2-39

Wisconsin

Wisconsin Statutes, Chapter 779, Liens, Subchapter I, Construction Liens, Sections 14 and 15

Wyoming

Wyoming Statutes, Title 16, City, County, State and Local Powers, Chapter 6, Public Property, Article 1, Public Works and Contracts, Sections 16-6-101 through 16-6-121

References

Little Miller Act Wikipedia