Archive for the ‘Miller Act Claims’ Category

Don't Know Who Bonded A State Or Federal Project? Just ask.

On January 12, 2010 Author By Scott Wolfe Jr

In nearly every circumstance, a general contractor on a federal or state project is required to maintain a bond for the work being performed.   These bonds protect the payment rights of subcontractors, sub-subcontractors and suppliers.    In the event any of these parties are not paid on the project, the unpaid party can typically file a claim against the surety who bonds the project as per the Miller Act or a state’s Little Miller Act.  (Read this great article from Construction Business Owner about bonds, generally).

Claims against sureties are beneficial because:  (1) It can reduce the prevalence of personality conflicts between the unpaid party and the general contractor; and (2) It is a guarantee that at the end of a proceeding, money will be there.

However, you can’t make a claim against a surety if you don’t know who the surety is.   And if you’re not on the best of a terms with a general contractor, you may fear that it won’t reveal the surety to you.

So, this begs the question:  how on earth do you discover the identity of a surety?

The answer is quite simple:  Just ask.  That’s right, just ask for it.

Who To Ask?

Under the Miller Act and most Little Miller Act statutes, the public agency in charge of the project is required to (and quite used to) disclose the identity of the surety to anyone who asks for it.

Using Google, you can generally always find the governing authority.   A governing authority will typically manage its contracts through:

(a) public works department;
(b) new construction department;
(c) purchasing department;
(d) capital projects department; or
(e) facilities department

Most of these governing authorities (almost all) will have a website that gives you some information about their public contracts.   Figuring out which department is in charge of the contract is generally a toss up, so you will likely need to navigate around government websites to find the best possible contact.

How to Ask

As I stated above, agencies are required to disclose the surety on the job….actually getting it, just depends on how difficult the agency will make it for you.

If a governing authority has a website, you will generally be able to find out at least a little bit of information about their projects. If the project is relatively new, they might still have bid postings, pictures, articles and reports posted.

Giving the agency a phone call will usually do the trick, but if you run into trouble, just send a certified letter making the request.

This article was originally posted on Express Lien’s topic-specific Construction Lien Blog.

Posted in:     Miller Act Claims, State Bond Claims  /  Tags: , ,   /   Leave a comment

Scott Wolfe Contributes Guest Post on Construction Law Musings

On January 8, 2010 Author By Scott Wolfe Jr

Big thank you to our friend Christopher Hill who operates the Construction Law Musings blog for allowing me to become his blog’s first three-time Guest Post Friday writer.

This morning, Musing’s published a blog post I wrote titled “A Lien By Any Other Name Can Sound Just As Sweet.”

The article provides readers with a broad overview of the lien-like remedies available to them, as they differ based upon the classes of projects. In large part, the article explains the difference between a traditional lien (filed against the property on private projects) and a “claim” type of lien (filed against a bond on a state and federal project).

Of course, this post only skims the surface, but sometimes, it’s the basic information that is needed to help folks understand the details. And why is it important to understand these details? The article on Musings concludes with that answer as follows:

Regardless of what class of project you’re working on, a lien-like remedy is probably available to you in the event of non-payment. However, it’s critical to understand the different remedies available at the onset of construction, for each remedy carries different pre-lien or pre-claim requirements.

Take a look at the article by clicking him, and be sure to subscribe to Christopher’s blog which posts great information relevant to those in the construction industry.

Posted in:     Mechanics Lien, Miller Act Claims, State Bond Claims  /  Tags: ,   /   1 Comment

5 Things To Know About The Miller Act

On December 2, 2009 Author By Scott Wolfe Jr

When unpaid on a private construction project, an unpaid contractor or supplier can typically file a mechanics lien against the project itself.    The lien attaches directly to the property, preventing transfers and sales, and protecting the unpaid contractor’s right to payment.

On jobs when the federal government owns the property itself, there is no legal right to lien it.   Instead, unpaid contractors or suppliers must turn to 40 U.S.C. § 3131; commonly referred to as The Miller Act.

Under the Miller Act, before any contract of more than $100,000 is awarded on a federal building or work, the prime contractor must post a bond to protect those supplying labor and/or materials to the project.  The bond is always there to protect qualifying subcontractors and suppliers from non-payment.

Here are five things you should know about the Miller Act:

  • Prime Contractors: If you are the prime contractor, you cannot bring a claim under the Miller Act.   Instead, you have a contract claim against the government, and must bring a lawsuit against it.   The Miller Act deadlines are not applicable, and you should consult with an attorney to discuss your claim.
  • First Tier Subcontractors and Material Suppliers: If you contracted with the prime contractor to provide labor and/or materials, you can sue the surety on the Miller Act Bond.   Suit must be brought within 1 year from the last date you provided materials or services.   A Miller Act Notice may be provided to the Owner and/or Surety.
  • Second Tier Subcontractors and Material Suppliers to First Tier Subcontractors: If you contracted with a first tier subcontractor, within 90 days from the last furnishing of labor and/or materials, you must deliver a Miller Act Notice to the prime contractor.   The law has specific requirements for what must be contained in the notice, and how it must be sent.   You need not deliver it to the surety, but it may be a good idea.   Suit on the bond must be brought within 1 year from the last date you provided materials and/or services.
  • Third Tier Subcontractors and Suppliers to Suppliers:   If you contracted with a second tier subcontractor, or if you are a supplier to a supplier, you do not have any rights under the Miller Act.  Instead, you must simply seek payment from the party they contracted with.
  • If you aren’t paid on a project, you have a right to see the bond and the contract.   Send an affidavit to to the contracting agency confirming that you both supplied labor and/or materials to the project, and have not been paid.

This article was originally posted on Express Lien’s topic-specific Construction Lien Blog.

Posted in:     Miller Act Claims  /  Tags: ,   /   1 Comment
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