The Miller Act
When contractors are not compensated for their services or materials supplied on a private construction project, the unpaid contractor typically has the right to file a construction lien against the property under improvement. Construction liens preserve the contractor’s right to payment by preventing the transfer or the sale of the property that is being improved. If you have not been compensated for work or materials provided, we strongly recommend seeking the guidance of an experienced contractor attorney in Tampa.
While unpaid contractors involved in private construction projects can rely on construction liens as a means to collect on unpaid services or materials supplied, contractors who are involved in federal or state construction projects must rely on the Miller Act for remedy. The Miller Act applies to contracts that involve the construction, improvement, or repair of any public building or public work of the Federal Government. The Miller Act is intended to protect subcontractors, material suppliers, and laborers by providing them with an alternative for remedy on public projects.
Florida’s Little Miller Act
Under Florida Statutes 255.05, any person who enters into a contract with a state, county, city, or other public authority for the construction, improvement, or repair of a public building or public work is required to execute and record in the public records of the county where the improvement or construction is taking place a payment and performance bond prior to the commencing or recommencing of the work after an abandonment or default of the project.
The bonds must be secured with a surety insurer who is authorized in the State of Florida to do business as a surety. However, the entity is not entitled to require the contractor to secure the bonds with any specific agent or bonding company. Our Tampa contractor attorneys are highly experienced with payment and performance bonds and can help to ensure the proper steps are taken when securing a bond for your next project.
Little Miller Act Bond Requirements:
The front page of the bond must include the following requirements:
1) The name, principle business address, and phone number of the contractor, the surety, and the owner of the property. If the owner of the property differs from the contracting public entity, the same information for the public entity should be included on the front page.
2) The contract number that is assigned by the contracting public entity should be also be included.
3) The bond number assigned by the surety.
4) A description of the project, such as a legal description or street address of the property being improved, and a description of the improvement.
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Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.