The Miller Act, the law requiring contract surety bonds on federal construction projects, also provides some warranties to all material and labor suppliers that are performing construction work under the bonded contract. As Orlando construction lawyers, we want material suppliers and subcontractors to be aware of these rights, and in this article, we will discuss them in detail.
If a subcontractor or a material supplier has not been paid in full within 90 days after they’ve completed the labor or supplied the needed materials, they have the right to initiate civil action on the payment bond that covers the unpaid section of their contract. For work or materials that were used on another project, subcontractors and supplier still have Miller Act rights, but restrictions may apply depending on the case.
Second-tier claimants also have the right to bring civil action as stated above. This claim must precisely describe the name of the person to whom the labor or material was supplied as well as the amount claimed.
A subcontractor or supplier has the right to obtain a certified copy of a payment bondif they are able to submit an affidavit that they have not received payment for their work, or that the person on the bond is being sued. We want to remind suppliers and subcontractors that they must cover fees and costs of producing the certified copy.
When Should You File?
If a subcontractor or material supplier is filing a civil action under the Miller Act, it is required to be indicated no longer than one year after the labor or material was supplied.
What Are the Liabilities?
As Orlando construction attorneys, we know that the government is not liable for payments of any costs or expenses of any civil action brought under this subsection.
A waiver clause in a subcontract is invalid unless signed after the subcontractor or supplier begins work.
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.