As a subcontractor on a federal construction project, it is imperative you know what you need to do to perfect your Miller Act payment bond rights. A subcontractor must prove the following four elements in a Miller Act payment bond claim:
- The subcontractor supplied labor and/or material per its subcontract;
- The subcontractor is unpaid for the labor and/or material supplied per its subcontract;
- The subcontractor had a good faith belief that the labor and/or material supplied was for purposes of the project (and prime contractor’s scope of work); and
- The subcontractor satisfied jurisdictional requirements in bringing the Miller Act payment bond lawsuit.
The subcontractor’s performance of labor and/or materials will be determined in reference to the subcontract. This includes the subcontractor’s payment for the labor and/or materials performed.
For more information on the Miller Act, please check out my ebook that goes into all aspects of Miller Act payment bond claims.