When is a Miller Act Payment Bond Required

I have numerous articles discussing the Miller Act when it comes to federal government contracting.  But, when is a Miller Act payment bond required?

The Miller Act requires that any contractor awarded a contract “of more than $100,000 for the construction, alteration, or repair of any public building or public work of the Federal Government” must furnish the Federal Government with a payment bond and performance bond. 40 U.S.C. s. 3131(b).

Typically, and more than likely, the Miller Act payment bond will be in the amount of the contractor’s prime contract with the federal government.  However, in (very) limited circumstances, the contracting officer may decide to lower the amount of the payment bond in a writing with specific factual findings.  However, the amount of the payment bond cannot be less than the amount of the Miller Act performance bond.  40 U.S.C. 3131(b).

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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