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 guaranteeing the performance of their contractual duties and/or the payment of their subcontractors and material suppliers.
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:- 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 subrogation right of the bond surety against the contractor is a deterrent to non-performance. Bond sureties often require additional security, including personal guarantees by principals of the prime contractor, to protect themselves in the event that the prime contractor ceases doing business simultaneous with the default. This provides the prime contractor's principals with additional incentive to ensure the project is completed.
- Payment Bonds: Subcontractors and material suppliers would otherwise be reluctant to work on such projects - decreasing competition and driving up construction costs.
Little Miller Acts by State
Alabama
Alabama Code, Title 39, Public Works, §39-1-1Alaska
Alaska Statutes, Title 36, Public Contracts, Chapter 36.25, Contractors' Bonds, Sections 36.25.010 through 36.25.025Arizona
, Title 34, Public Buildings and Improvements, Article 2, Contracts, Sections 34–222, 34-223 and 34-224Arkansas
Arkansas Statutes, Title 22, Public Property, Chapter 9, Public Works, Subchapter 4, Contractors' Bonds,Sections 22-9-401 through 22-9-405
California
, 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 10230Colorado
, 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 38-26-110Connecticut
, Title 49, Mortgages and Liens, Chapter 847, Liens, Sections 49-41 through 49-43Delaware
Delaware Code, Title 29, State Government, Budget, Fiscal, Procurement and Contracting Regulations, Chapter 69, State Procurement, Subchapter IV, Public Works Contracting, Section 6962District 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 2-201.11Florida
, Title XVIII, Public Lands and Property, Chapter 255, Public Property and Publicly Owned Buildings, Section 255.05Georgia
, 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 36-91-95Hawaii
Hawaii Revised Statutes, Chapter 103D, Hawaii Public Procurement Code, Part III, Source Selection and Contract Formation, Sections 103D-323 through 103D-325Idaho
Idaho Code, Title 54, Professions, Vocations and Businesses, Chapter 19, Public Works Contractors, Sections 54-1925 through 54-1930Illinois
, Government, Chapter 30, Finance – Purchases and Contracts, Sections 550/0.01 through 550/3, Public Construction Bond ActIndiana
, 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 5-16-5.5-8Iowa
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 CompaniesKansas
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