The United States of America, on behalf of and for the use and benefit of iENG, LLC, v. Travelers Casualty and Surety Company of America

Fort Lauderdale, Florida surety bond law lawyer represented the Plaintiff on a Miller Act claim.





The Miller Act (40 U.S.C. 311-313) is a federal law requiring payment and performance bonds on contracts exceeding $150,000 for federal government construction projects. These bonds protect subcontractors and material suppliers from nonpayment by the prime contractor. 28 U.S.C. § 1352 provides jurisdiction for suits on these bonds in federal district courts.

Here's a more detailed breakdown:



Purpose:

The Miller Act, enacted in 1935, replaced the Heard Act, aiming to strengthen protections for those supplying labor and materials to federal construction projects.



Scope:

It applies to contracts exceeding $150,000 for construction, alteration, or repair of public buildings or works.

Bonds:

Contractors must provide both a payment bond (protecting subcontractors and suppliers) and a performance bond (protecting the government).

Payment Bond:

Guarantees that subcontractors and material suppliers will be paid for their work.

Performance Bond:

Ensures the contractor completes the project according to contract terms, or covers the government's costs if the contractor defaults.

Claims:

Subcontractors and suppliers can file claims on the payment bond within 90 days of last furnishing labor or materials, but must file suit within one year.

State Versions:

Many states have similar laws known as "Little Miller Acts," which may have different thresholds and requirements.

Jurisdiction:

28 U.S.C. § 1352 grants federal district courts jurisdiction over actions on bonds executed under federal law, including the Miller Act.

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