Tag: Payment Bond
-
Does the Miller Act Apply to Bonds on Tribal Construction Projects?
Subcontractors on public projects are afforded protection in the form of payment bonds. Because subs and suppliers do not have access to mechanics liens (public land cannot be encumbered by a private party), surety bond claims provide much needed protection for unpaid parties down the chain. For federal projects, these bonds are required by the Miller Act.…
-
Obtaining Louisiana Surety Bonds Gets Easier For Small Businesses
Mechanics liens and surety bond claims are among the best tools available to contractors, subs, and suppliers. By leveraging lien rights, an unpaid party is able to enforce their right to payment by putting an owner’s property at risk of eventual foreclosure. Public property cannot be encumbered by a mechanics lien, but a general contractor must provide surety bonds on projects.…
-
Conditional Payment Bonds on Florida Private Projects
Payment bonds typically come into play when dealing with a public project. Because mechanics liens are not available on public projects, a party to a sub or supplier can file a surety bond claim against the contractor’s payment bond. Payment bonds are less common when dealing with private projects because the payment rights of contractors, subs, and suppliers…
-
Florida Man Convicted of Surety Bond Fraud on Federal Projects
On public projects, payment and performance bonds are required by either the Miller Act (for federal projects) or a Little Miller Act (for state and local projects). These bonds both insure that a contractor will complete the project as promised and that all parties who subcontract under the general contractor will be paid. Public projects…
-
Michigan Bond Claims Do Not Require Actual Notice
Bond claims, like mechanics liens, are invaluable when settling payment disputes in construction. By establishing a payment bond, as required by the Miller Act and Little Miller Acts, a general contractor has provided recourse for subcontractors and suppliers down the chain who are not paid in full. With the flawed design of the construction payment chain,…
-
How Long Does a Payment Bond Last on a Florida Public Project?
The biggest difference between public and private projects is the requirement of performance and payment bonds on public jobs. We have more material on performance and payment bonds, but in short, general contractors must provide insurance that they will complete the project and that they will pay their subcontractors and suppliers. Payment bonds are especially helpful, because…
-
New Jersey Bill Helps Small Businesses Obtain Surety Bonds
In order to work on a public project, be it local, state, or federal, a general contractor must obtain surety bonds. These bonds protect the awarding authority by ensuring the full performance under the contract and assure subcontractors, suppliers, and any other down the chain laborers that they won’t be stiffed when it comes time…
-
Miller Act Claims Trump Pay If Paid, Dispute Resolution Clauses
The Miller Act is legislation passed in order to protect the subcontractors, suppliers, and other down the chain laborers on federal construction projects. Under the Miller Act, general contractors on federal projects exceeding $100,000 in value must provide performance and payment bonds on which subcontractors and suppliers may file a claim after going unpaid. On private…
-
Surety Bonds on Public Projects May Get Cheaper Going Forward
The construction industry has rebounded over the last few years and more growth is forecasted in 2017. That is, so long as the construction workforce can supply enough labor to meet growing demands. Employment issues aside, the construction industry can confidently expect a boom to at least one sector: infrastructure. By electing Donald Trump, the country…
-
District of Columbia Court Reiterates Importance of Little Miller Acts
We talk about the Miller Act and Little Miller Acts regularly on the blog. These laws are integral in protecting subcontractors and suppliers on public projects. Unlike their counterparts on private projects, subs and suppliers involved in public works projects do not have the protection of a mechanics lien. Because public property may not be encumbered…