Legal Definitions - Miller Act

The Miller Act is a federal law that requires contractors to post performance and payment bonds before being awarded a contract for construction, alteration, or repair of a public work or building. This law was enacted to protect the interests of subcontractors and suppliers who may not receive payment for their work if the contractor defaults on the project.

For example, if a construction company is awarded a contract to build a new courthouse, they must post a performance bond and a payment bond before beginning work. The performance bond ensures that the contractor will complete the project according to the contract specifications, while the payment bond guarantees that subcontractors and suppliers will be paid for their work.

Another example would be if a contractor is hired to repair a government-owned bridge. They would need to post the required bonds before starting the project to ensure that all parties involved are protected.

These examples illustrate how the Miller Act works to protect the interests of subcontractors and suppliers by requiring contractors to provide financial security before beginning work on a public project.