{"id":896603,"date":"2019-10-23T15:59:41","date_gmt":"2019-10-23T21:59:41","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=896603"},"modified":"2019-10-15T16:05:43","modified_gmt":"2019-10-15T22:05:43","slug":"federal-miller-act-payment-bond-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/federal-miller-act-payment-bond-claim\/","title":{"rendered":"Federal Miller Act Payment Bond Claim: Who Gets Paid and Who Does Not? What Are the Deadlines?"},"content":{"rendered":"\n

William L. Porter | Porter Law Group<\/a> <\/p>\n\n\n\n

When working on federal public works construction projects there are no Stop Payment Notice or Mechanics Lien remedies available to protect subcontractors\u2019 and suppliers\u2019 right to payment. Instead, unpaid subcontractors and suppliers must resort to making a claim for payment under a federal law known as the AMiller Act@ (40 USCS 3131 et seq.). Many claimants however, do not realize that the right to make a Miller Act claim is not<\/em> available to all<\/em> subcontractors and suppliers. Before committing to performing work on a federal project it is important for subcontractors and suppliers to understand whether or not a Miller Act claim will be available. For those who have no Miller Act rights, careful consideration must be given to whether it is worth the risk to take on the project. For those who have valid Miller Act claim rights, important deadlines must be considered.<\/p>\n\n\n\n

WHO GETS PAID UNDER A MILLER ACT CLAIM AND WHO DOES NOT<\/strong><\/p>\n\n\n\n

For federal projects in excess of $100,000, contractors who have a contract directly with the Federal Government must obtain Miller Act Payment Bond intended for the protection of Subcontractors, laborers and material suppliers to the project.<\/p>\n\n\n\n

As a general rule, every subcontractor, laborer, or material supplier who deals directly<\/em> with the prime contractor and is unpaid may bring a lawsuit for payment against the Miller Act Payment Bond. Further, every unpaid subcontractor, laborer, or material supplier who has a direct contractual relationship with a first-tier subcontractor<\/em> may bring such an action. The deadlines for these claims are described below.<\/p>\n\n\n\n

Among those who cannot<\/em> bring a legal action on the Miller Act Payment Bond are third-tier subcontractors (see diagram below). In addition, suppliers to suppliers are also generally not entitled to a Miller Act Claim (See<\/em> J.W. Bateson Company<\/em> v. Board of Trustees<\/em>, 434 U.S. 586 (1978)).<\/p>\n\n\n\n

The diagram below is illustrative. In the diagram, only subcontractors and material suppliers ABOVE the heavy black dashed line can make a claim against the original contractor\u2019s Miller Act Payment Bond. Those below the line are barred from making a Miller Act Claim:<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

WHAT CLAIMS DEADLINES APPY?<\/strong><\/p>\n\n\n\n

Once a subcontractor or supplier determines whether they are entitled to a Miller Act claim, the next consideration is the deadline that applies for making such a claim. On federal projects within California (owner is one of the agencies of the Federal Government, e.g., Corps of Engineers) the general rules are as follows:<\/p>\n\n\n\n