Do I need a surety bond on this public works project in my state, and how much? Every US state has a 'Little Miller Act' requiring performance and/or payment bonds on public construction contracts, but the dollar thresholds, bond percentages, notice requirements, and claim deadlines differ in every state. California requires bonds on all public works contracts (no minimum) with payment bonds over $25,000. Texas requires bonds over $100,000 for state entities, $25,000 for payment bonds. Washington allows retainage in lieu of bond under $150,000. One record per state, sourced from the state's own statute. Answers 'Little Miller Act thresholds by state', 'do I need a bond on a $75,000 public project in Virginia', 'state payment bond requirements for construction'. Adjacent to mechanics-lien-deadlines, construction-retainage-limits, and construction-prompt-payment-deadlines.

State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Alabama

**Payment bond threshold:** Less than $50,000

**Bond amount:** Not less than 50 percent of the contract price

**Claim deadline:** not later than one year from the date of final settlement of the contract

**Preliminary notice required:** Written notice to the surety of the amount claimed to be due and the nature of the claim shall be sent by registered or certified mail 45 days prior to filing suit

**Statutory citation:** Code of Alabama, Title 39, Chapter 1, Division 8, §§39-1-1

> ALABAMA Amount of Bond: Not less than 50 percent of the contract price. Labor and Material Covered: All labor, supplies and materials used in connection with the public works contract. Notice Required: Written notice to the surety of the amount claimed to be due and the nature of the claim shall be sent by registered or certified mail 45 days prior to filing suit. Time for Suit: Claimant may institute an action upon the additional bond any time after 45 days after the written notice to the surety but such suit must be commenced not later than one year from the date of final settlement of the contract. Contracts Excluded: Less than $50,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Code of Alabama, Title 39, Chapter 1, Division 8, §§39-1-1.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Alabama — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Alaska

**Payment bond threshold:** Under $100,000

**Bond amount:** one-half of the contract price where the total amount payable by the terms of the contract is not more than $1,000,000; 40 percent of the contract price whenever the total amount payable by the terms of the contract is more than $1,000,000 but not more than $5,000,000; whenever the total amount payable by the terms of the contract is more than $5,000,000 the payment bond is in the sum of $2,500,000

**Claim deadline:** such action must be commenced within one year after the date of final settlement of the contract

**Preliminary notice required:** Any person having a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the principal contractor must give written notice to the contractor within 90 days from the date on which such person performed the last of the labor or furnished or supplied the last of the material for which the claim is made

**Statutory citation:** Alaska Statutes, Title 36, Chapter 36.25, §§36.25.010 to 36.25.020

> ALASKA Types of Projects: Public contracts for one-half of the contract price where the total amount payable by the terms of the contract is not more than $1,000,000; 40 percent of the contract price whenever the total amount payable by the terms of the contract is more than $1,000,000 but not more than $5,000,000; whenever the total amount payable by the terms of the contract is more than $5,000,000 the payment bond is in the sum of $2,500,000. §36.25.010. Labor and Material Covered: Labor and material furnished for the construction, alteration, or repair of any public building or public work of the state. §36.25.010. Notice Required: No notice is required by a person having a contractual relationship, express or implied with the principal contractor. Any person having a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the principal contractor must give written notice to the contractor within 90 days from the date on which such person performed the last of the labor or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was performed, see sample below. Such notice shall be served by mailing it by registered mail, postage prepaid, in an envelope addressed to the contractor at any place where an office is maintained or business is conducted or the residence of the contractor. Alternatively it may be served in any manner in which a peace officer is authorized to serve a summons. §36.25.020. NOTICE TO CONTRACTOR TO: (prime contractor) You are hereby notified that the undersigned claimant has furnished (labor, materials, supplies or equipment) for use in the prosecution of the work of (public agency, contract number) at the request of (name of subcontractor). The last day of furnishing (labor, materials, supplies or equipment) was ___ . The undersigned makes claim against you and your surety for payment of $ _ which sum is due and owing to the undersigned. DATED this day of __ , 20 . Name of Claimant: Address: Phone Number: Signature: Title: Contractor Registration Number: Time for Suit: Suit may be brought any time after the expiration of 90 days after the day on which the last of the labor was performed or material was furnished for which the claim is made, but such action must be commenced within one year after the date of final settlement of the contract. §36.25.020. Contracts Excluded: Under $100,000. §36.25.010. Penalty for Failure to Take Bond: The State may not approve final payments to the contractor until the contractor files a written certification that all persons who supplied labor or material in the prosecution of the work provided for in the contract have been paid. §36.25.010. Statutory Citation: Alaska Statutes, Title 36, Chapter 36.25, §§36.25.010 to 36.25.020. ARIZONA ARIZONA LITTLE MILLER ACT (PAYMENT BOND RIGHTS) PAYMENT BONDS FOR

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Alaska — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Arizona

**Bond amount:** One hundred percent of the contract price

**Claim deadline:** suit must be actually filed within one year of the date on which the last of the claimant’s labor was performed or the claimant’s materials were furnished

**Preliminary notice required:** must actually serve the prime contractor with written notice of a bond claim, with confirmed receipt, not later than ninety (90) days following the last date that labor was performed or materials were supplied

**Statutory citation:** Arizona Revised Statutes, Title 34, Chapter 2, Article 2, §§ 34-222-223

> ARIZONA PUBLIC PROJECTS Arizona’s “Little Miller Act” is set forth in Arizona Revised Statutes § 34-221 (“Surety bond required; suit on bond; limitations”), through A.R.S. § 34-227. It applies to most Arizona public projects at the city, county or state level. Both a performance bond and a payment bond must equal the full contract amount. A.R.S. § 34-222.A.1 and 2. A performance bond is obtained by a subcontractor or general contractor for the protection of the public body awarding the contract A.R.S. § 34-222.A.1, in order to ensure the completion of the contract. By comparison, a payment bond is obtained by the prime contractor for the benefit of subcontractors and suppliers furnishing materials or labor to the project, who may then make a claim against the payment body if they are not paid, as long as they properly served a preliminary notice and bond claim letter. A.R.S. § 34-222.A.2. Required Amount of Bond: One hundred percent of the contract price solely for the protection of claimants supplying labor or material to the contractor or his subcontractors in the prosecution of the work provided for in contracts for the construction, alteration, or repair of the public work. A.R.S. § 34-222.A.1. Labor and Material Covered: Labor or material furnished in the prosecution of the work provided for in such contract, for which the contractor or supplier has not been paid in full. A.R.S. § 34-223.A. Notice Required: Preliminary Twenty (20) Day Notice or a “Ninety (90) Day Bond Claim Letter: None for a subcontractor or a materials supplier having a direct contract with the prime contractor, i.e., the highest tier contractor that is in direct contract with the public entity. A.RS. § 34-223.A. Otherwise, in order to make a claim on the payment bond, a subcontractor or materials supplier must have served a written preliminary 20-day notice in compliance with A.R.S. § 33.992.01(C), (E), (F) and (H); see A.R.S. §34-223(A)(1). Further, the subcontractor or materials supplier, in addition to serving a preliminary notice, must actually serve the prime contractor with written notice of a bond claim, with confirmed receipt, not later than ninety (90) days following the last date that labor was performed or materials were supplied. A.R.S. § 34-223.A(2). That notice must state with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was supplied. A.R.S. § 34-223.A(2). The notice can be served by any means that provides written, third-party verification of delivery to the contractor at any place the contractor maintains an office or conducts business. Id. The claimant may then file suit on the payment bond against (i) the bond surety, (ii) the prime contractor as the principal on the bond, and (iii) the party with whom the claimant directly contracted, only in the county in which the labor was performed or materials supplied, within one year of the last date of supplying contractually conforming labor or materials. A.R.S. § 34-223.B. By amending A.R.S. § 34-223, the Arizona Legislature overruled the Arizona Court of Appeals in the decision of Cemex Construction Materials South, LLC v. Falcone Brothers & Associates, Inc ., 237 Ariz. 236 (App. 2015). The Court of Appeals ruled in that decision that, under the Arizona Little Miller Act, a prime contractor must receive its preliminary notice by certified mail in order for a ninety (90) day Little Miller Act bond claim notice to be effective, and before the bond claimant may possess a right to foreclose that bond claim. Id. The Court of Appeals had also ruled that if the prime contractor actually receives the preliminary notice within twenty (20) days of the supply date of the amount a subcontractor or supplier claims on its bond claim, those bond claim rights are not rendered invalid by the claimant’s failure to send the preliminary notice by certified mail. Id. Accordingly, if a bond claimant could prove that the general contractor actually received the preliminary notice, the bond claim rights would still be valid. The recently amended version of A.R.S. § 34-223 overrules the appellate opinion and clarifies the confusion that the opinion created, permitting service of the preliminary notice on an Arizona Miller Act project by the same preliminary notice service manner required of lien claimants: first-class mail with a certificate of mailing, registered mail, or certified mail. A.R.S. § 34-223.A(1). Further, the amendment eliminates the requirement for the Miller Act bond claim letter to be served by certified mail, and allows it to be served by any verified form of service. A.R.S. § 34-223.A(2). Practice tip 1 : If up against the ninety-day service deadline, transmit the bond claim letter by all available means, including email with a receipt notice requested, by facsimile without a transmittal cover page so as to allow the fax confirmation to appear on the first page of the notice, by hand delivery, and by overnight delivery initiated not later than the second to last day of the ninety-day period where the ninetieth day falls on a business day, i.e., the eighty-ninth (89th) day, if the 90th day falls on a business-open Friday. Practice tip 2 : There is no certainty that there is forgiveness for the ninetieth day falling on a weekend or judicial holiday. Accordingly, the last business day within the ninety-day period should be considered the last day for the prime contractor to receive the bond claim letter. Practice tip 3 : While only the prime contractor must receive the copy of the bond claim letter, the strategy of also copying the owner (the government office in charge of issuing contracts on the project), any management company making payment, and the customer if the claimant is a materials supplier, is more likely to generate payment than serving only the prime contractor. Time for Suit: No Arizona Miller Act bond claim suit can be commenced within the first ninety (90) days following the date on which the last of the bond claimant’s labor was performed or materials were furnished; under the statute, such suit rights do not even commence for 90 days. A.R.S. § 34-223(A). However, suit must be actually filed within one year of the date on which the last of the claimant’s labor was performed or the claimant’s materials were furnished for which the claim is being made. A.R.S. § 34-223.B. Penalty for Contractor’s Failure to Obtain the Required Miller Act Payment Bond: No statutory provision. Statutory Citation: Arizona Revised Statutes, Title 34, Chapter 2, Article 2, §§ 34-222-223.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Arizona — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Arkansas

**Payment bond threshold:** all public works exceeding $20,000

**Bond amount:** A sum equal to the amount of the contract

**Claim deadline:** No action shall be brought on the bond after six months from the final payment on the job

**Preliminary notice required:** No special statutory provision

**Statutory citation:** Arkansas Code Annotated, Title 18, Subtitle 4, Chapter 44, Subchapter 5, §§18-44-501 to 18-44-508; Title 22, Chapter 9, Subchapter 4, §§22-9-401 to 22-9-405

> ARKANSAS Note: In Arkansas, special bond statutes are passed because contractors cannot create a lien against a public property when working for a public entity. Arkansas has passed two statutes concerning bonds. The first act was passed in 1911, and is codified under the Mechanic’s and Materialmen’s Liens section of the Arkansas Code. The second act was passed in 1929 and is in the Public Property/Public Works section of the Arkansas Code. These two statutes do not require two separate bonds, and have been interpreted to be one whole statute by the Arkansas courts ( Berry Asphalt Co. v. W. Sur. Co., 223 Ark. 344, 266 S.W.2d 835 (1954)). Amount of Bond: A sum equal to the amount of the contract on all public works exceeding $20,000 (§18-44-503). Labor and Material Covered: All labor and material furnished in the prosecution of the contract to execute and deliver the contract, except Arkansas Department of Transportation contracts (§18-44-502). The statute covers all surety bonds required by the state and provides that these bonds shall be liable on all claims for labor and materials entering into the construction, or necessary to or used in the course of construction of the public improvements (§18-44-506). Notice Required: No special statutory provision. However, if a bond is not provided by the contractor on construction projects for churches, religious organizations and charitable institutions as required by Ark. Code Ann. §18-44-504, lien claimants must adhere to the notice and timing requirements set out in the lien statutes ( St. Matthews Church v. White, 172 Ark. 1152, 291 S.W. 977 (1927); S. Cent. Dist. of the Pentecostal Church of God of Am., Inc. v. Bruce-Rogers Co., 269 Ark. 130, 599 S.W.2d 702 (1980)), cf. Leonards v. E.A. Martin Mach. Co. , 321 Ark. 239, 245, 900 S.W.2d 546, 550 (1995). Time for Suit: No action shall be brought on the bond after six months from the final payment on the job, unless it is a project on which the Arkansas Building Authority approves final payment on the state contract, in which case the suit must be filed within 12 months from the date that Arkansas Building Authority approves final payment. Additionally, no action shall be brought outside the State of Arkansas (§18-44-503; §18-44-508). To avoid controversy, bond claimants should follow the six-month statute of limitations. No action shall be brought on a bond furnished by a public works contractor after one year from the date final payment is made on the contract (§22-9-403). Statutory Bonds Versus Common Law Bonds: The Arkansas courts distinguish statutory bonds and common law bonds in determining the applicable statute of limitations. Bonds covering claims for labor and materials contributed on a public project as required under Arkansas law are considered to be statutory bonds. ( Berry Asphalt Co. v. W. Sur. Co ., 223 Ark. 344 (1954)). Claims on statutory bonds for payment of materials or labor furnished on a public project are limited by the one-year limitations period contained in the statutes. (§22-9-403; §18-44-503). Common law bonds are not only for the purpose of securing payment for materials and labor, but rather, they also assure the owner that the contractor will perform and complete the project in a proficient workmanlike manner. ( Berry Asphalt Co. v. W. Sur. Co ., 223 Ark. 344 (1954)). Claims on performance bonds are subject to the common law limitations period. ( Berry Asphalt Co. v. W. Sur. Co ., 223 Ark. 344 (1954)). If a bond provides greater coverage than that set out in Ark. Code Ann. §22-9-401, then the bond is a common law bond not covered by statute, and a bond claimant is not bound by the one-year limitation. ( U.S. Fid. and Guar. Co. v. Little Rock Quarry Co ., 309 Ark. 269, 830 S.W.2d 362 (1992)). Contracts Excluded: Under $20,000. However, for charitable institutions, only contracts under $1,000 are excluded (§18-44-503; §18-44-504). Penalty for Failure to Take Bond: No special statutory provision. Surety Company: The bonds must be made by surety companies authorized to do business in Arkansas (§18-44-506). Bond from a Particular Source: It is a Class A misdemeanor for any person to require a bidder or contractor to purchase a surety bond from a particular insurance company or surety company, agent, or broker (§22-9-405). Statutory Citation: Arkansas Code Annotated, Title 18, Subtitle 4, Chapter 44, Subchapter 5, §§18-44-501 to 18-44-508; Title 22, Chapter 9, Subchapter 4, §§22-9-401 to 22-9-405.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Arkansas — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** California

**Payment bond threshold:** Contracts less than $25,000 are excluded from bond requirements

**Bond amount:** A sum equal to the amount of the contract on all public works

**Claim deadline:** must be commenced before the expiration of six months after the period in which stop payment notices may be filed

**Preliminary notice required:** A claimant must give the preliminary notice as required for stop payment notices for public works

**Statutory citation:** California Civil Code, Division 4, Part 6, Title 2, Chapter 6, §§8600 to 8614; Title 3, Chapter 3, §§9300 to 9306; Chapter 5, §§9550 to 9566

> CALIFORNIA PAYMENT BONDS Public Private Partnerships (P3) Projects Effective January 1, 2014, any local government who enters into an agreement with private entities for the study, planning, design, financing, construction, maintenance, rebuilding, improvement, repair, or operation by private entities of specific types of fee-producing infrastructure must include provisions to ensure the issuance of performance and payment bonds. Public Works Amount of Bond: A sum equal to the amount of the contract on all public works, and executed by an admitted surety insurer. (Civil Code, §9354). Contracts Excluded: Contracts less than $25,000 are excluded from bond requirements, as are contracts with any state entity defined in California Public Contract Code. (Civil Code, §9550). Labor and Material Covered: Any materials, provisions, provender or other supplies, power or teams, furnished to, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld and paid over to the Employment Development Board from the wages of employees of the contractor and his subcontractors. Notice Required: A claimant must give the preliminary notice as required for stop payment notices for public works. (Civil Code, §§9530, 9560). Suit against the surety or sureties on the payment bond may be brought by any claimant, or his assigns, at any time, after the claimant has furnished the last of the labor or materials, or both, but must be commenced before the expiration of six months after the period in which stop payment notices may be filed. Said preliminary notice must be served by registered or certified mail, by personal delivery, express mail, overnight delivery by an express service carrier, or in the manner for serving summons and complaint. In the event, claimant fails to serve preliminary notice as required, claimant may serve written notice to the surety and principal on the bond within 15 days of Notice of Completion or within 75 days of completion if no Notice of Completion. The notice to surety will not be effective to cause payment under the payment bond if the direct contractor has paid all progress payments to subcontractor to whom the claimant provided labor and materials; except those disputed in good faith. (Civil Code, §9560). Service shall be in the same manner as required for service of stop payment notice. Time for Suit: Claimant must file suit not later than six months after the period in which stop notice payments must be served. Private Works There is no requirement that payment be issued for projects on private works except for security for large projects. (Civil Code, §§8700-8730). By causing direct contract, and payment bond in sum not less than 50 percent of the contract price to be recorded, the owner can limit his liability for lien claims to the amount due from the owner to the contractor. Notice Required: A claimant must give the preliminary notice as required for mechanics liens and stop payment notices. (Civil Code, §8612). If preliminary notice was not given as required, claimant may serve written notice to the surety and principal on the bond within 15 days after recordation of a notice of completion or, if no notice of completion, 75 days after completion of the work of improvement. The notice to surety will not be effective to cause payment under the payment bond if the direct contractor has paid all progress payments to subcontractor to whom the claimant provided labor and materials; except those disputed in good faith. (Civil Code, §8612). Service shall be in the same manner as required for service of stop payment notice. (Civil Code, §8614). Time for Suit: If payment bond is recorded before completion of work of improvement, an action to enforce the liability on the bond may not be commenced later than six months after completion of work of improvement. If payment bond is not recorded before completion of the work or improvement, an action to enforce the liability on the bond will be determined as stated in the bond, except under no circumstances shall it limit the time to a shorter period than six months from the completion of the work of improvement. If the bond does not state the time for bringing suit, the time period is four years. Statutory Citation: California Civil Code, Division 4, Part 6, Title 2, Chapter 6, §§8600 to 8614; Title 3, Chapter 3, §§9300 to 9306; Chapter 5, §§9550 to 9566.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

California — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Colorado

**Payment bond threshold:** Any contract for more than $50,000 with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works. Any contract for more than $100,000 for the construction of any public work for the State of Colorado.

**Bond amount:** not less than one-half of the total amount payable under the terms of the contract

**Claim deadline:** Within six months after the completion of the public work

**Preliminary notice required:** may file, with the official awarding the contract, a verified statement of the amount due and unpaid

**Statutory citation:** §§38-26-102, 38-26-105, 38-26-106, C.R.S.

> COLORADO Types of Projects: Any railroad, reservoir, or irrigating canal company contracting for the construction of its railroad, reservoir, or irrigating canal, or any part thereof. Any contract for more than $50,000 with any county, municipality, or school district for the construction of any public building or the prosecution or completion of any public works or for repairs upon any public building or public works. Any contract for more than $100,000 for the construction of any public work for the State of Colorado. (§§38-26-102, 38-26-105, 38-26-106, C.R.S.). Labor and Material Covered: Railroad, reservoir, or irrigating canal company. All laborers, mechanics, materialmen, ranchmen, farmers, merchants and other persons who supply such contractor, or any of his or her subcontractors, with labor, work, laborers, materials, ranch or farm products, provisions, goods, or supplies of any kind all just debts incurred therefor in carrying on such work. (§38-26-102, C.R.S.). Public works. All labor, laborers, materials, rental machinery, tools or equipment used or performed in the prosecution of the work. Second tier material suppliers (material suppliers to a material supplier) do not have protection under the Colorado Contractor’s Bonds and Lien on Funds Article 26. And all labor, materials, team hire, sustenance, provisions, provender or other supplies used or consumed by contractor or his subcontractor in or about the performance of the public work. (§§38-26-105, 38-26-106, C.R.S.). Verified Claim and Withholding of Payments: If a claimant has not been paid, the claimant can deliver a notice called a “verified statement of the amount due and unpaid on account of the claim” to the railroad, reservoir, or irrigation canal or their agents or to the any county, municipality, or school district or the state. The party served must then withhold payments from the contractor in a sufficient amount to assure payment of the claimant. (§38-26-103, 38-26-107, C.R.S.). Notice Required for Public Projects: Persons furnishing labor or material to a contractor or subcontractor, at any time up to and including the time of final settlement for the work contracted to be done, which final settlement shall be duly advertised at least 10 days prior thereto in the county or counties where the work was contracted for and wherein such work was performed, may file, with the official awarding the contract, a verified statement of the amount due and unpaid, whereupon such official shall withhold payments from contractor sufficient to ensure the payment of such claim, until the same has been paid or the claim has been properly withdrawn. However, such funds shall not be withheld longer than 90 days following the date fixed for final settlement, unless an action is commenced within that time to enforce such unpaid claim and notice thereof is filed with the public body that awarded the contract. (§38-26-107, C.R.S.). Contractor’s Bond: A penal bond in a sum of “not less than one-half of the total amount payable under the terms of the contract” with a “good and sufficient surety” must be provided stating that “such contractor shall at all times promptly make payments of all amounts lawfully due to all persons supplying or furnishing such person or such person’s subcontractors with labor, laborers, materials, rental machinery, tools, or equipment used or performed in the prosecution of the work.” Claimants on the bond who are unpaid have a direct right of action on the bond if they timely file suit on the bond. (§§38-26-105, 38-26-106, C.R.S.). Time for Suit on Verified Statement of Claim and Bond: Suit must be commenced on the verified statement of claim and on the bond within 90 days of the date set for final settlement. (§38-26-107, C.R.S.). Time for Suit on Bond: Within six months after the completion of the public work, or the time limitation set forth in the bond if greater than six months after completion of the project. (§38-26-106, C.R.S.). Penalty for Failure to Take Bond: Unless such bond is executed, delivered and filed, no claim in favor of the contractor arising under such contract shall be audited, allowed or paid. Contracts Excluded: Under $50,000. Special Provisions: Notwithstanding the monetary qualification, the governing body of any county, city, town or school district determining it to be in the best interest of the county, city, town or school district may require the execution of a penal bond for any contract of $50,000 or less. Trust Funds: All funds disbursed to any contractor or subcontractor shall be held in trust for payment of any person that has furnished labor, materials, sustenance, or other supplies used or consumed by the contractor in or about the performance of the work contracted to be done or that supplies laborers, rental machinery, tools, or equipment. Any person who violates the provisions of the trust fund statute commits theft. (§§38-26-109; §18-4-401, C.R.S.). Violation of the trust fund statute may result in a treble damages award against the party violating the statute under §18-4-405, C.R.S. Under Colorado case law, the principals of a company who have violated the trust fund statute may be found to be personally liable for the violation, including treble damages. ( Alexander Company v. Packard, 754 P.2d 780 (Colo. App. 1988)). Excessive Amounts Claimed: Any person who files a verified statement of claim or asserts a claim against a principal or surety that has furnished a bond for an amount greater than the amount due without a reasonable possibility that the amount claimed is due and with the knowledge that the amount claimed is greater than the amount due, and that fact is demonstrated in a proceeding under the statute, shall forfeit all rights to the amount claimed and shall be liable for all costs and attorneys’ fees reasonably incurred by the one contesting the claim. (§38-26-110, C.R.S.). Statutory Citation: Colorado Revised Statutes, Title 38, Article 26, §§38-26-101 to 38-26-110; Title 18, Article 4, Part 4, §§18-4-401, 18-4-405.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Colorado — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Connecticut

**Payment bond threshold:** Under $100,000

**Bond amount:** A bond in the amount of the contract is required

**Claim deadline:** No suit may be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the claimant

**Preliminary notice required:** may enforce the right to payment under the bond by serving a written notice of claim within 180 days

**Statutory citation:** Connecticut General Statutes, Title 49, Chapter 847, §§49-41 to 49-42

> CONNECTICUT Amount of Bond: A bond in the amount of the contract is required. Labor and Material Covered: Labor and materials in the prosecution of the work provided for in contract for the construction, alteration or repair of any public building or public work of the state or any subdivision thereof. The word “material” includes the rental of equipment used in the prosecution of such work. Notice Required: Every person who has furnished labor or material in the prosecution of the work provided for in a contract for which a statutory payment bond is required is entitled to payment within 30 days after the party with whom that person has contracted, whether the general contractor or a subcontractor, receives payment for that person’s work. Any person who performed work or supplied materials for which a requisition was submitted to the awarding authority and who does not receive full payment for such work or materials within 60 days of the applicable payment date set forth above, or any person who supplied materials or performed subcontracting work not included on a requisition who has not received payment within 60 days after the day on which the last of the labor was done or performed, may enforce the right to payment under the bond by serving a written notice of claim within 180 days from the date when such person performed the last of the labor or furnished the last of the material for which claim is made, on the surety that issued the bond and a copy of the notice on the principal contractor. The notice shall state with substantial accuracy the amount claimed, name of the party for whom labor was performed or to whom materials were furnished and a detailed description of the bonded public project involved. Within 90 days after service of the notice of claim, the surety must pay the claim or such amount which is not disputed in good faith and must notify the claimant as to any unpaid portion for which liability is denied. Notices shall be served by registered mail or certified mail, postage prepaid, in envelopes addressed to any office at which the surety, principal or claimant conducts his business, or in any manner in which civil process may be served. Time for Suit: No suit may be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the claimant. Contracts Excluded: Under $100,000. Municipal Liability for Failure to Obtain Bond: In the event that any political subdivision of the state fails to obtain delivery of the payment bond required by statute, any person who has not been paid by the contractor shall have the same right of action against such political subdivision of the state as such person would have had against a surety. Statutory Citation: Connecticut General Statutes, Title 49, Chapter 847, §§49-41 to 49-42.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Connecticut — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Delaware

**Payment bond threshold:** A special state body, the Contracting and Purchasing Advisory Council, sets the threshold amount for “large public works” where bonds are required

**Bond amount:** 100 percent of the contract price

**Claim deadline:** no suit on the bond shall be commenced after the expiration of one year following the date which the successful bidder ceased work on the contract

**Preliminary notice required:** No special statutory provision, review bond for timeframes

**Statutory citation:** Delaware Code Annotated, Title 29, Chapter 69, §6962

> DELAWARE BONDS ON PUBLIC WORKS PROJECTS Amount of Bond: 100 percent of the contract price. Labor and Material Covered: Every firm furnishing material or performing labor under the contract of a successful bidder on a public works project for which the successful bidder is liable may maintain an action thereon for the recovery of such sum as may be due from the contractor. “Material” is defined to mean materials, equipment, tools, supplies or any other personal property but does not include electric, gas, water, telephone or similar utilities. Notice Required: No special statutory provision, review bond for timeframes. Time for Suit: If the bond so provides, no suit on the bond shall be commenced after the expiration of one year following the date which the successful bidder ceased work on the contract. Otherwise, suits may be commenced at any time within three years following the date the last work was performed on the contract. Contracts Excluded: A special state body, the Contracting and Purchasing Advisory Council, sets the threshold amount for “large public works” where bonds are required. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Delaware Code Annotated, Title 29, Chapter 69, §6962.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Delaware — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** District of Columbia

**Payment bond threshold:** Procurement regulations may waive bonds for contracts of $100,000 or less

**Bond amount:** 100% of the prime contract amount if over $100,000

**Claim deadline:** within one year from the date final labor was performed or the material was supplied

**Preliminary notice required:** must give written notice to the prime contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the material for which the claim is made

**Statutory citation:** District of Columbia Code, Division I, Title 2, Chapter 3A, Subchapter VII, §§2-357.01 to 2-357.06

> DISTRICT OF COLUMBIA Amount of Bond: 100% of the prime contract amount if over $100,000, but can be reduced by the Contract Procurement Officer to one-half of the total amount payable by the terms of the prime contract. The Contract Procurement Officer can substitute a letter of credit for a contractor that is a non-profit corporation, licensed and doing business as a general contractor for at least five years and has a net worth of at least one million dollars. Labor and Material Covered: Labor or material furnished to the prime contractor or a subcontractor in performance of work in the prime contract, including lessors of equipment. Notice Required: No notice is required by a person having a contract with the prime contractor. Any person having a contract with a subcontractor must give written notice to the prime contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was performed. Such notice shall be served by mailing the same by certified or registered mail, postage prepaid, in an envelope addressed to the contractor at any place he maintains an office or conducts his business, or his residence. Time for Suit: Suit must be instituted more than 90 days after the last day of labor or material for which claim is made, but within one year from the date final labor was performed or the material was supplied. Contracts Excluded: Procurement regulations may waive bonds for contracts of $100,000 or less. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: District of Columbia Code, Division I, Title 2, Chapter 3A, Subchapter VII, §§2-357.01 to 2-357.06.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

District of Columbia — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Federal (Miller Act)

**Performance bond threshold:** requires performance and payment bonds for any construction contract exceeding $150,000

**Payment bond threshold:** for construction contracts greater than $35,000, but not greater than $150,000, the contracting officer shall select two or more of the following payment protections

**Bond amount:** 100 percent of the original contract price

**Statutory citation:** 40 U.S.C. chapter 31

> 40 U.S.C. chapter 31 , subchapter III, Bonds (formerly known as the Miller Act), requires performance and payment bonds for any construction contract exceeding $150,000, except that this requirement may be waived- (1) By the contracting officer for as much of the work as is to be performed in a foreign country upon finding that it is impracticable for the contractor to furnish such bond ; or (2) As otherwise authorized by the Bonds statute or other law. (b) (1) Pursuant to <http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section3132&num=0&edition=prelim> 40 U.S.C. 3132 , for construction contracts greater than $35,000, but not greater than $150,000, the contracting officer shall select two or more of the following payment protections, giving particular consideration to inclusion of an irrevocable letter of credit as one of the selected alternatives: (i) A payment bond . (ii) An irrevocable letter of credit (ILC). (iii) A tripartite escrow agreement . The prime contractor establishes an escrow account in a federally insured financial institution and enters into a tripartite escrow agreement with the financial institution, as escrow agent, and all of the suppliers of labor and material. The escrow agreement shall establish the terms of payment under the contract and of resolution of disputes among the parties. The Government makes payments to the contractor’s escrow account, and the escrow agent distributes the payments in accordance with the agreement, or triggers the disputes resolution procedures if required. (iv) Certificates of deposit . The contractor deposits certificates of deposit from a federally insured financial institution with the contracting officer , in an acceptable form, executable by the contracting officer . (v) A deposit of the types of security listed in <https://www.acquisition.gov/far/subpart-28.2#FAR_28_204_1> 28.204-1 and <https://www.acquisition.gov/far/subpart-28.2#FAR_28_204_2> 28.204-2 . (2) The contractor shall submit to the Government one of the payment protections selected by the contracting officer . (c) The contractor shall furnish all bonds or alternative payment protection, including any necessary reinsurance agreements, before receiving a notice to proceed with the work or being allowed to start work. 28.102-2 Amount required. (a) Definition . As used in this subsection- Original contract price means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options , except those options exercised at the time of contract award. (b) Contracts exceeding $150,000- (1) Performance bonds . Unless the contracting officer determines that a lesser amount is adequate for the protection of the Government, the penal amount of performance bonds must equal- (i) 100 percent of the original contract price ; and (ii) If the contract price increases, an additional amount equal to 100 percent of the increase. (2) Payment bonds . (i) Unless the contracting officer makes a written determination supported by specific findings that a payment bond in this amount is impractical, the amount of the payment bond must equal- (A) 100 percent of the original contract price ; and (B) If the contract price increases, an additional amount equal to 100 percent of the increase. (ii) The amount of the payment bond must be no less than the amount of the performance bond .

Source: <https://www.acquisition.gov/far/subpart-28.1>

Federal (Miller Act) — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Florida

**Payment bond threshold:** The threshold for exemption from the bond requirement is $100,000 on public works

**Bond amount:** In an amount equal to the original contract price

**Claim deadline:** after one year from the performance of the labor or completion of delivery of the materials or supplies

**Preliminary notice required:** shall, within 45 days after beginning to furnish labor, material or supplies for the prosecution of such work, furnish the contractor with a notice that he intends to look to the bond for protection

**Statutory citation:** Florida Statutes, Title XVIII, Chapter 255, §255.05

> FLORIDA Amount of Bond: In an amount equal to the original contract price. Labor and Material Covered: Labor, material and supplies used directly or indirectly in the prosecution of the work by contractors, subcontractors, sub-subcontractors, laborers, materialmen and professional lienors. Notice Required: A claimant, except a laborer, who is not in privity with the contractor shall, within 45 days after beginning to furnish labor, material or supplies for the prosecution of such work, furnish the contractor with a notice that he intends to look to the bond for protection; if the claim includes sums for retainage, the notice must specify the portion of the amount claimed for retainage. A claimant who is or is not in privity with the contractor and who has not received payment for his labor, material or supplies, shall within 90 days after performance of the labor or after complete delivery of all the materials and supplies, deliver to the contractor and the surety written notice of the performance of the labor or delivery of the material and supplies, of the nonpayment and amount of nonpayment and that the claimant is looking to the bond for payment. Time for Suit: No action or suit shall be instituted or prosecuted against the contractor or against the surety on the bond required by the statute after one year from the performance of the labor or completion of delivery of the materials or supplies. The time for suit may be shortened by a contractor who files a Notice of Contest of Claim Against Payment Bond; a claimant upon whom such notice is served must institute suit to enforce the claim within 60 days of service of the notice. Contracts Excluded: The threshold for exemption from the bond requirement is $100,000 on public works. Contracts under $200,000 may be exempted on public works. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Florida Statutes, Title XVIII, Chapter 255, §255.05.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Florida — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Georgia

**Payment bond threshold:** Less than $100,000

**Bond amount:** Not less than the contract price

**Claim deadline:** All suits must be brought within one year after the completion of the project and acceptance by the public authority

**Preliminary notice required:** Those not under direct contract with the general contractor must give written notice of claim within 90 days after the date on which the last of the labor was performed or the last of the materials furnished

**Statutory citation:** Official Code of Georgia, Title 13, Chapter 10, §§13-10-60 to 13-10-65

> GEORGIA Amount of Bond: Not less than the contract price. Labor and Material Covered: All persons supplying labor or material used in the prosecution of the work. Notice Required: No notice required if there is a direct contractual relationship with the general contractor. Those not under direct contract with the general contractor must give written notice of claim within 90 days after the date on which the last of the labor was performed or the last of the materials furnished. If the owner, agent of the owner, or general contractor files a Notice of Commencement within 15 days of beginning the project, a lien claimant who does not have a direct contractual relationship with the general contractor is barred unless the claimant serves a Notice to Contractor within 30 days of the claimant beginning work on the project. Time for Suit: All suits must be brought within one year after the completion of the project and acceptance by the public authority. Contracts Excluded: Less than $100,000. However, public authority may require bond when the contract price is less than $100,000. Less than $50,000 for DOT projects. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Official Code of Georgia, Title 13, Chapter 10, §§13-10-60 to 13-10-65.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Georgia — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Hawaii

**Payment bond threshold:** All public construction projects which exceed $25,000

**Bond amount:** a bond equal to 100 percent of the contract price of construction

**Claim deadline:** shall be brought within one year after the last labor was performed or material supplied for the work provided in the contract

**Preliminary notice required:** Written notice shall be served by registered or certified mail to contractor and surety within 90 days from the date on which the person did or performed the last labor or furnished or supplied the last of the material for which claim is made

**Statutory citation:** Hawaii Revised Statutes, Division 1, Title 9, Chapter 103D, §324

> HAWAII Types of Projects: All public construction projects which exceed $25,000, require a bond equal to 100 percent of the contract price of construction. §103D-324 Labor and Material Covered: All labor and materials furnished to the contractor and used in the prosecution of the work provided for in such contract. §103D-324 Notice Required: Written notice shall be served by registered or certified mail to contractor and surety within 90 days from the date on which the person did or performed the last labor or furnished or supplied the last of the material for which claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. The notice shall be served to the contractor and surety at any place they maintain an office or conduct their business or in any manner authorized by law to serve summons. §103D-324 Time for Suit: Every suit instituted on a payment bond shall be brought within one year after the last labor was performed or material supplied for the work provided in the contract. §103D-324 Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Hawaii Revised Statutes, Division 1, Title 9, Chapter 103D, §324.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Hawaii — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Idaho

**Payment bond threshold:** any contract equal to or greater than fifty thousand dollars

**Bond amount:** In an amount to be fixed by the contracting body, but in no event less than eighty-five percent of the contract amount

**Claim deadline:** No such suit shall be commenced after the expiration of one year from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material or equipment for which such suit is brought

**Preliminary notice required:** must give written notice to the contractor within 90 days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material or equipment for which such claim is made

**Statutory citation:** Idaho Statutes, Title 54, §§ 54-5203, 54-5217, 54-1902, 54-1925 to 1929

> IDAHO Who May Claim: Before any contract equal to or greater than fifty thousand dollars for the construction, alteration, or repair of any public building or public work or improvement in the State of Idaho, a person shall furnish to the State of Idaho, or to such county, city, town, municipal corporation, township, school district, public educational institution, or other political subdivision, public authority, or public instrumentality, or to such officer, board, commission, institution, or agency thereof, a payment bond which shall become binding upon the award of the contract to such person, who is hereinafter designated as “contractor.” (Idaho Code § 54-1926.) Every claimant who has furnished labor or material or rented, leased, or otherwise supplied equipment used in the prosecution of the work provided for in such contract in respect of which a payment bond is furnished, and who has not been paid in full therefor before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by him or material or equipment was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond. (Idaho Code § 54-1927.) However, it shall be unlawful for any person to engage in the business or act in the capacity of a public works contractor within this state without first obtaining and having a license issued pursuant to the provisions of this chapter by the administrator of the division of building safety, unless that person is specifically exempted. (Idaho Code § 54-1902.) Idaho Contractor Registration Act: All contractors must register with the Idaho Contractors Board. The term “contractor” is broadly defined and includes anyone engaged in construction and anyone who hires those engaged in construction, though it does not include suppliers. (Idaho Code § 54-5203.) It is unlawful for a person to engage in business as a contractor in Idaho without holding a current registration. Also, if not exempt, an unregistered contractor is precluded from bringing or maintaining any action for the collection of compensation. (Idaho Code § 54-5217(2); ParkWest Homes, LLC v. Barnson (“ParkWest I”) , 149 Idaho 603, 608 (Idaho 2010); reaffirned ParkWest Homes, LLC v. Barnson(“ParkWest II”) , 154 Idaho 678 (2013).) A contract for work subject to the Act is illegal and cannot be enforced if the contractor is unregistered when the contract is executed. ( AED, Inc. v. KDC Invs., LLC , 155 Idaho 159, 167-68 (Idaho 2013).) Amount of Bond: In an amount to be fixed by the contracting body, but in no event less than eighty-five percent of the contract amount. (Idaho Code § 54-1926.) Labor and Material Covered: Construction, alteration, or repair of any public building or public work or improvement in the State of Idaho or any political subdivision, public authority, or public instrumentality thereof, including the renting or leasing of equipment. (Idaho Code § 54-1926.) Notice Required: No notice is required by a person having a contractual relationship, express or implied, with the principal contractor. Any person having a direct contractual relationship with a subcontractor, but no contractual relationship, express or implied, with the principal contractor, must give written notice to the contractor within 90 days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material or equipment for which such claim is made, stating with substantial accuracy the amount claimed and the name of the person to whom the material was furnished or supplied or for whom the labor was done or performed. Each notice shall be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place he maintains an office or conducts his business or at his residence. (Idaho Code § 54-1927.) Limit on Contract Retainage: Public bodies requiring a performance bond or payment bond in excess of fifty percent of the total contract amount shall not be authorized to withhold from the contractor or subcontractor any amount exceeding five percent of the total amount payable as retainage. Further, the public body shall release to the contractor any retainage for those portions of the project accepted by the contracting public body and the contractors as complete within thirty days after such acceptance. Contractors who utilize subcontractors to perform a portion of the contract work with a public body, shall not be authorized to withhold from the subcontractor any amount exceeding five percent of the total amount payable to the subcontractor as retainage. The contractor shall remit the retainage to the subcontractor within thirty days after completion of the subcontract. (Idaho Code § 54-1926 (3).) Time for Suit: No such suit shall be commenced after the expiration of one year from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material or equipment for which such suit is brought, except that if the claimant is a subcontractor of the contractor, no such suit shall be commenced after the expiration of one year from the date on which final payment under the subcontract became due. Every suit instituted on the such payment bond shall be brought in an appropriate court in any county in which the contract was to be performed. (Idaho Code § 54-1927.) In any action brought upon either the payment or construction bonds, or against the public body failing to obtain the delivery of the payment bond, the prevailing party, upon each separate cause of action, shall recover a reasonable attorney’s fee to be taxed as costs. (Idaho Code § 54-1929.) Contracts Excluded: No statutory provision excluding certain contracts. Penalty for Failure to Take Bond: Any public body who fails or neglects to obtain the required payment bond shall, upon demand, itself make prompt payment to all persons who have supplied materials or performed labor in the prosecution of the work under the contract, and any such creditor has a direct right of action upon his account against such public body in any court having jurisdiction in any county in which the contract was to be performed and executed, which action must be commenced within one year after the furnishing of materials or labor. (Idaho Code § 54-1928.) Statutory Citation: Idaho Statutes, Title 54, §§ 54-5203, 54-5217, 54-1902, 54-1925 to 1929.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Idaho — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Illinois

**Bond amount:** in an amount sufficient to complete the contract including the payment for all labor and material

**Claim deadline:** No action shall be brought on the bond later than one year after the date of the furnishing of the last item of work or materials by the claimant

**Preliminary notice required:** shall have filed verified notice of claim with the officer, board, bureau or department awarding the contract within 180 days after the date of the last item of work or the furnishing of the last item of materials

**Statutory citation:** Illinois Compiled Statutes, 30 ILCS 550/0.01 to 550/3

> ILLINOIS Amount of Bond: Shall be fixed by such officials, boards, commissions, commissioners or agents awarding the contract in an amount sufficient to complete the contract including the payment for all labor and material whether by subcontractor or otherwise. Labor and Material Covered: Material used in such work and for all labor performed in such work, whether by subcontractor or otherwise. In addition the Public-Private Partnerships for Transportation Act grants the Illinois Department of Transportation (IDOT) and the Illinois State Highway Tollway Authority the necessary powers for the development, financing, and operation of transportation projects through public-private agreements with one or more private entities. Bid, performance and payment bonds or other security determined suitable by IDOT, including letters of credit, are required. Notice Required: Every person furnishing material or performing labor, either as an individual or as a subcontractor for any contractor with the state or any political subdivision thereof, has a right to sue on the bond provided, however, that any person having a claim for labor or material as aforesaid shall have no such right of action unless he shall have filed verified notice of claim with the officer, board, bureau or department awarding the contract within 180 days after the date of the last item of work or the furnishing of the last item of materials and files a copy of the notice with the contractor within 10 days after filing the notice with the agency officer or political body clerk or secretary awarding the contract. The claim shall be verified and shall contain: (1) the name and address of the claimant; the business address of the claimant within the State of Illinois, and if the claimant be a foreign corporation having no place of business within the State of Illinois, the notice shall state the principal place of business of said corporation, and in the case of a partnership the notice shall state the name and residence of each of the partners; (2) the name of the contractor for the government; (3) the name of the person, firm or corporation by whom the claimant was employed or to whom he or it furnished materials; (4) a brief description of public improvement sufficient for identification; and (5) a description of the claimant’s contract as it pertains to the public improvement, describing the work done by claimant and stating the total amount due and unpaid as of the date of the verified notice. Time for Suit: No action shall be brought on the bond later than one year after the date of the furnishing of the last item of work or materials by the claimant. Public Improvement Lien: Illinois provides a lien on unexpended funds due the contractor. To preserve the lien, written notice of the potential claim must be sent to the public authority and contractor prior to the payment of the unexpended funds. Notice must be provided to the clerk or secretary, as the case may be, of the local government unit. A prime contractor can force a subcontractor to file its claim for lien by giving notice to subcontractor and if the subcontractor fails to file its lien claim within 30 days of notice, the lien is forfeited, otherwise suit must be filed within 90 days after filing the notice of claim. The suit must make the prime contractor and any intermediate subcontractors defendants. Notice of the suit must be received by the public authority within 10 days of filing. On state jobs, the suit must be filed not less than 15 days before the date on which the appropriation will lapse. Contract Bond Excluded: Under $50,000 for work performed for the State, and for all other political subdivisions under $5,000. A political subdivision may allow an irrevocable bank letter of credit in lieu of a bond on contracts under $100,000 if motor fuel tax funds, federal-aid funds or funds from the state are not used. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Illinois Compiled Statutes, 30 ILCS 550/0.01 to 550/3.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Illinois — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Indiana

**Payment bond threshold:** Title 4, Title 5, Title 8 and Title 36 require bonds for state and local projects in excess of $200,000

**Bond amount:** a bond for the total price of the general contract

**Claim deadline:** all suits must be brought against the surety on the payment bond within one year after final settlement with the contractor

**Preliminary notice required:** a written Verified Claim stating the amount due and owing to the claimant must be filed with the Public Works Division of the Indiana Department of Administration within 60 days after the last labor performed, last materials furnished or last services rendered

**Statutory citation:** Indiana Code, Title 4, Article 13.6, Chapter 7, §§4-13.6-7-5 to 4-13.6-7-11; Title 5, Article 16, Chapter 5, §§5-16-5-1 to 5-16-5-2; Title 8, Article 23, Chapter 9, §§8-23-9-8 to 8-23-9-33; Title 36, Article 1, Chapter 12, §§36-1-12-12 to 36-1-12-13.1

> INDIANA Types of Projects: In Indiana, there are four different public works statutes: Title 4 for certain projects owned by the State of Indiana, such as state prisons; Title 5 for other state projects, such as state supported universities; Title 8 for state highways, bridges and rest stops; and Title 36 for local government projects, including public schools. Amount of Bond: Each of the four statutes requires a bond for the total price of the general contract if the project is required to be bonded. Labor and Material Covered: Any labor or services performed or materials furnished in the construction, erection, alteration or repair of any public improvement; work or improvement of any nature or character on the public works project. However, on Title 36 projects, lessors of equipment to a subcontractor are not covered. Also, under Title 8, a claimant who is not in privity of contract with the contractor or a subcontractor (any subcontractor or material supplier who is not a first or second tier claimant) is not entitled to the coverage of a performance bond. Notice Required: Title 4. To impound contract proceeds, a written Verified Claim stating the amount due and owing to the claimant must be filed with the Public Works Division of the Indiana Department of Administration within 60 days after the last labor performed, last materials furnished or last services rendered by that claimant. To make a claim under the bond, a Verified Claim must be given to the surety and the Public Works Division must be notified that the surety has been given the Verified Claim. A copy of the claim filed with the public body must also be provided to the general contractor on the project. Title 5. To make a claim against retainage, a Verified Statement of Claim setting forth the amount due and owing, the name of the subcontractor and when the work was performed or materials furnished must be filed in duplicate with the public agency administering the contract within 60 days after the last work or services were performed or last item of materials were furnished to the project by that claimant. To make a claim against the bond, a Duplicate Verified Statement must be filed with the appropriate governing body within 60 days after that claimant last worked on the project setting forth the same information required in the Verified Statement of Claim. A copy of the claim filed with the public body must also be provided to the general contractor on the project. However, a contractor is not required to execute a bond in the case of a contract with a state educational institution, if the contract amount is less than $500,000 and the institution waives the requirement. Title 8. To claim against the contract proceeds, a Triplicate Verified Itemized Statement must be filed with the Department of Transportation. This must be in writing, verified, contain an itemized statement of the amount due, identify the claimant by name and post office address, identify the contractor for whom the work was performed, set forth the dates, including the last date, on which the work was performed, describe the work and the costs thereof, and attach itemized statements or invoices. This should be filed in triplicate within 60 days of the last labor performed or materials furnished and, in all instances, within 30 days after final acceptance of the project. To claim against the bond, the claimant must file a statement of the amount due and owing with the surety on the bond. The statement of the amount due and owing must be furnished to the surety within one year after acceptance of the labor, materials or services by the DOT. The surety must be given 60 days to respond, after which time suit may commence on the bond. Title 36. To claim against retainage, a Verified Claim must be filed with the public agency administering the contract setting forth the project by name and address, the amount due and owing, the contractual relationship between the claimant and the subcontractor or general contractor, and the date upon which the last work was performed or materials furnished. To claim against the bond, a Signed Duplicate Statement must be filed with the governing body setting forth the same information as the Verified Claim within 60 days after the last labor or materials were furnished to the project by that claimant. A copy of the claim filed with the public body must also be provided to the general contractor on the project. Time for Suit: Title 4. A claimant may not file suit against the contractor’s surety on the payment bond until 30 days after filing the Verified Claim with the Public Works Division. Unless the bond provides a greater period of time, all suits must be brought against the surety on the payment bond within one year after final settlement with the contractor. Title 5 and Title 36. If a Verified Statement is filed, suit cannot be brought against the surety on the payment bond until the expiration of 30 days after the filing of the Verified Duplicate Statement with the governing body. Suit must be commenced within 60 days after final completion and acceptance of the public works project by the public agency, which by case law interpretation is generally the “substantial completion date.” Title 8. If the triplicate notice is filed with the DOT as against retainage, then the DOT is required upon receipt to withhold from the retainage a sum equal to the amount of the claim. The prime contractor is given 20 days within which to give written notice to the DOT that it is allowing or rejecting the claim. If the claim is rejected in whole or in part, the DOT is to give immediate notice of the contractor’s action by registered mail to the claimant. Within 90 days after receiving notice of a rejection from the DOT, the claimant must take two procedural steps to perfect its claim. First, it must commence an action against the contractor or surety in a court of competent jurisdiction. Second, once the lawsuit has been filed, the claimant must obtain a certificate from the clerk stating that the action has been filed, the date it was filed and the identity of the parties to the action. The claimant must file this certificate with the DOT within a 90-day period. If a claim is made as against the bond only, and not retainage, then after the surety is given 60 days to respond suit must be filed 18 months from the date of final acceptance of the project. Contracts Excluded: Title 4, Title 5, Title 8 and Title 36 require bonds for state and local projects in excess of $200,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Indiana Code, Title 4, Article 13.6, Chapter 7, §§4-13.6-7-5 to 4-13.6-7-11; Title 5, Article 16, Chapter 5, §§5-16-5-1 to 5-16-5-2; Title 8, Article 23, Chapter 9, §§8-23-9-8 to 8-23-9-33; Title 36, Article 1, Chapter 12, §§36-1-12-12 to 36-1-12-13.1.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Indiana — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Iowa

**Payment bond threshold:** Public improvement contracts under $25,000

**Bond amount:** Not less than 75 percent of the contract price

**Claim deadline:** Any time after the expiration of 30 days, and not later than 60 days, following the completion and final acceptance of the public improvement

**Preliminary notice required:** Such notice must be received by the principal contractor within thirty days of first performing or furnishing

**Statutory citation:** Iowa Code, Title XIV, Subtitle 3, Chapter 573

> IOWA Amount of Bond: Not less than 75 percent of the contract price, excepting that, in contracts where no part of the contract price is paid until after the completion of the public improvement, the amount of the bond may be fixed at not less than 25 percent of the contract price. Labor and Material Covered: Labor performed or material, services, or transportation furnished in the construction of a public improvement under a contract with the principal contractor or with subcontractors, except those furnishing materials to a subcontractor. Notice Required: To principal contractor. A person, firm, or corporation that has performed labor for or furnished materials, service, or transportation to a subcontractor shall not be entitled to a claim against the retainage or bond. However, an exception exists where the principal contractor is notified in writing with a one-time notice containing the name, mailing address and telephone number of the performing or furnishing party and the name of the subcontractor. Such notice must be received by the principal contractor within thirty days of first performing or furnishing. This notice covers additional labor performed or materials, service, or transportation furnished by the same party to the same subcontractor for use in the same construction project. The claim must be also supported with a certified statement that the principal contractor received the notice. Note that this exception does not apply to highway, bridge, or culvert projects. Counsel should also note: The construction bidding procedures are now incorporated into Chapter 26 in the Code of Iowa which allows for various devices based upon the amount of the project. Time of Filing Claims: Claims must be filed no later than 30 days after the completion and final acceptance of the improvement, or at any time if no action is pending and the full contract price has not been paid. Public Improvements and Highway, Bridge, or Culvert Projects: Payments made by a governmental entity or the department for the construction of public improvements and highway, bridge, or culvert projects are discussed in Section 573.28. A contractor may request the release of all or part of the retained funds owed at any time after all or any part of the work is substantially completed. The request must be accompanied by a sworn statement from the contractor that, 10 calendar days prior to filing the request, notice was given to all known relevant parties. Once the funds are released by the governmental agency or the department, the contractor must in turn release owed funds to other relevant parties. In case of highway improvements by the county, claims shall be filed with the county auditor of the county letting the contract. In case of contracts for improvements on the farm-to-market highway system paid from farm-to-market funds, claims shall be filed with the auditor of the state department of transportation. Interest: Interest is available on unpaid funds; however, the rate of interest is determined by the period of time during which interest accrues, and shall be the same as the rate of interest that is in effect under Section 12C.6, as of the day interest begins to accrue. Time for Suit: Any time after the expiration of 30 days, and not later than 60 days, following the completion and final acceptance of the public improvement. Contracts Excluded: Public improvement contracts under $25,000. Penalty for Failure to Take Bond: Bond mandatory. Statutory Citation: Iowa Code, Title XIV, Subtitle 3, Chapter 573.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Iowa — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Kansas

**Payment bond threshold:** Required if the contract exceeds $100,000

**Bond amount:** must be for at least the amount of the contract price

**Claim deadline:** no action shall be brought on the bond after six months from the completion of the public improvement

**Preliminary notice required:** No special statutory provision, so review bond to determine deadlines

**Statutory citation:** Kansas Statutes, Chapter 60, Article 11, §§60-1110 to 60-1111

> KANSAS Types of Projects: Can be on private or public projects. The bond must be filed with the Clerk of the District Court of the county where the improvement is to be made. Private. Optional, but if obtained, must be sufficient to pay all claims which might be a basis for a lien, for at least the amount of the contract price. Public. Required if the contract exceeds $100,000, and must be for at least the amount of the contract price. Labor and Material Covered: All supplies, materials or labor furnished, used or consumed in connection with or in or about the construction of said public improvements or in making such public improvements. Notice Required: No special statutory provision, so review bond to determine deadlines, except in connection with the improvement of highways. Time for Suit: On bonds other than state highway bonds, no action shall be brought on the bond after six months from the completion of the public improvement. On bonds given in connection with the construction, improvement, reconstruction and maintenance of the state highway system, no action may be brought after one year from the completion of the contract. Contracts Excluded: Any contract for less than $100,000 does not require a bond. For state highway contacts of more than $1,000 made by the state secretary of transportation, the bond must be filed with the secretary. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Kansas Statutes, Chapter 60, Article 11, §§60-1110 to 60-1111.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Kansas — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Kentucky

**Payment bond threshold:** Under $25,000

**Bond amount:** A payment bond in the amount of 100 percent of the contract price

**Claim deadline:** civil actions on bonds in the class of procedures which must be initiated within 15 years after cause of action has accrued

**Preliminary notice required:** Within 60 days of the last day of the month in which materials were provided, the claimant must file a statement in writing verified by affidavit

**Statutory citation:** Kentucky Revised Statutes, Title XXXI, Chapter 376.100

> KENTUCKY Amount of Bond: A payment bond in the amount of 100 percent of the contract price. Labor and Material Covered: All persons supplying labor and material to the contractor or his subcontractors for the performance of the work provided for in the contract. Notice Required: Within 60 days of the last day of the month in which materials were provided, the claimant must file a statement in writing verified by affidavit, setting forth the amount due, the date on which work was last performed, and the name of the public improvement upon which it is claimed. The statement shall be filed in the county clerk’s office of the county in which the seat of government of the owner is located. Time for Suit: This also is not specified in the statute. Kentucky’s general statute of limitations includes civil actions on bonds in the class of procedures which must be initiated within 15 years after cause of action has accrued. However, the Kentucky courts have allowed the surety to a shorter period in the bond. Contracts Excluded: Under $25,000. Penalty for Failure to Take Bond: No special provisions. Statutory Citation: Kentucky Revised Statutes, Title XXXI, Chapter 376.100.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Kentucky — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Louisiana

**Payment bond threshold:** a contract in excess of $25,000 for the construction, alteration or repair of any public work

**Bond amount:** a bond furnished in an amount not less than 50 percent of the contract price

**Claim deadline:** On public works, one year following the date upon which the notice of termination was filed

**Statutory citation:** Louisiana Revised Statutes, Title 9, §§9:4802C, 9:4811 to 9:4812, 9:4823A(2); Title 38, §§38:2212, 38:2241, 38:2246A, 38:2247

> LOUISIANA Amount of Bond: Private Works. The owner may relieve himself of the claims and privileges afforded by the Private Works Act if he requires the contractor to give a bond with good and sufficient surety. The amount of the bond must be the amount of the contract, if the contract does not exceed $10,000; between $10,000 and $100,000 the amount of the bond must be 50 percent of the contract, but in no event less than $10,000. For contracts over $100,000, but not in excess of $1,000,000, the bond must be 33⅓ percent of the contract, but in no event less than $50,000, and for contracts exceeding $1,000,000 the bond must be 25 percent of the amount of the contract but not less than $333,333. The bond must be attached to and recorded with the contract (or notice of contract). Public Works. Louisiana law requires that whenever the state or any state entity, agency or political subdivision enters into a contract in excess of $25,000 for the construction, alteration or repair of any public work, the contract must be in writing and a bond furnished in an amount not less than 50 percent of the contract price. The bond is given to ensure the faithful performance of the contract and for the payment of certain claims arising out of the work. Under a 1985 amendment to the Public Works Act, lessors of equipment used in the construction project are now protected by the Act. Although the statute only requires a bond in an amount equal to 50 percent of the contract price, nearly all public contract bonds are for the full amount of the contract. On public contracts of $200,000 or less, 50 percent of the performance bond required by the bid is waived for any contractor who: (1) qualifies as a small business; (2) is a “responsible bidder;” (3) has been certified by the director of the Department of Economic Development to be in compliance with the criteria set forth by the Department of Economic Development; (4) has been operating under the same name for over three years; and (5) has been denied a guaranteed bond by the Small Business Administration or an established surety firm, for any reason other than a previous performance default. Under Louisiana law, a public works bond is considered a statutory bond. This means that regardless of the contents and provisions of the bond document itself, the bond is deemed to provide coverage under such terms as are specified in the Public Works Act. This entails that any provisions of the Act which were omitted from the bond would be read into the bond, and extra-statutory language in the bond would be read out of the bond. This is known as the “read-in, read-out” rule. Labor and Material Covered: Any person to whom money is due pursuant to a contract with a contractor or subcontractor for doing work, performing labor or furnishing materials or supplies for the construction, alteration, or repair of any public works, or for transporting and delivering such materials or supplies to the site of the job by a for-hire carrier, or for furnishing oil, gas, electricity or other materials or works, including persons to whom money is due for the lease or rental of movable property used at the site and including any architect or consulting engineer engaged by the contractor or subcontractor in connection with the building of any public work. See Chapter 1. Notice Required: See Chapter 1. However, it must be noted that suits on “conventional” bonds—that is, on bonds not supplied in accordance with or pursuant to statutory requirements—are not subject to claim restrictions based on the Private and Public Works Acts and the filing and notice requirements therein contained. Instead, claims against conventional bonds are governed by the terms of the bond and the prescriptive statutes (statutes of limitation) governing conventional obligations. Time for Suit (for statutory bonds and related “lien” type claims only): On private works, one year following the date upon which the lien was filed. On public works, one year following the date upon which the notice of termination was filed. Attorneys’ Fees Recoverable by Claimant: In the public works context, after amicable demand for payment has been made on the principal and surety and 30 days have elapsed without payment being made, any claimant recovering the full amount of his timely and properly recorded or sworn claim, whether by concursus proceeding or separate suit, shall be allowed 10 percent attorneys’ fees which shall be taxed in the judgment on the amount recovered. Penalty for Failure to Take Bond: In the private context, there is no penalty in the strict sense, other than the loss of protections for the owner from personal liability and from the in rem liability related to the property that is the subject of the work. On public jobs, when an awarding authority makes final payment to the contractor without deducting the total amount of all outstanding claims properly served on it or without obtaining a bond (in this case, a release of lien bond; the existing payment bond will not suffice for the purpose) from the contractor to cover the total amount of all outstanding claims, the awarding authority shall become liable from its ordinary budget for the amount of these claims. Statutory Citation: Louisiana Revised Statutes, Title 9, §§9:4802C, 9:4811 to 9:4812, 9:4823A(2); Title 38, §§38:2212, 38:2241, 38:2246A, 38:2247.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Louisiana — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Maine

**Performance bond threshold:** any contract exceeding $125,000

**Payment bond threshold:** any contract exceeding $125,000

**Bond amount:** Both payment and performance bonds in an amount equal to the full contract amount

**Claim deadline:** no action may be commenced after the expiration of one year from the date on which the last of the labor was performed or material was supplied

**Preliminary notice required:** shall have given written notice to the contractor within 90 days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material for which such claim is made

**Statutory citation:** Maine Revised Statutes, Title 14, Chapter 205, Subchapter 3, §871

> MAINE Bonds Required: Bonds are required in Maine regarding any contract exceeding $125,000 for the construction, alteration or repair of any public building or other public improvement or public work. Both payment and performance bonds in an amount equal to the full contract amount. The performance bond shall be conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions thereof. Such bond is solely for the protection of the state or the contracting body awarding the contract. The payment bond shall be solely for the protection of claimants supplying labor or materials to the contractor or the contractor’s subcontractor in the prosecution of the work provided for in the contract. Labor and Material Covered: Labor or material supplied to the contractor or his subcontractor in the prosecution of the work provided for in the contract for the construction, alteration or repair of any public building or other public improvement or public work including highways awarded to any person by the state or by any political subdivision or quasi municipal corporation or by any public authority. The term “material” includes rental of equipment. Notice Required: No notice is required by a claimant having a contractual relationship, express or implied, with the principal contractor before bringing a claim on the bond. A claimant having a direct contractual relationship with a subcontractor of the contractor (but no contractual relationship, express or implied, with such contractor) shall not have the right of action upon such payment bond unless he shall have given written notice to the contractor within 90 days from the date on which such claimant performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place he maintains an office or conducts his business or at his residence. Time for Suit: No suit shall be commenced prior to 90 days from the date on which claimant furnished the last of the labor or material for which such claim is made and no action may be commenced after the expiration of one year from the date on which the last of the labor was performed or material was supplied for the payment of which such action is brought. Every action shall be brought in the county where the construction, alteration or repair of the public building, improvement or work is located. Prompt Payment Act: (10 M.R.S.A. §§1111-1120). Maine’s Prompt Payment Act protects subcontractors by setting forth payment deadlines for project owners and contractors on both residential and commercial construction jobs on real estate. An owner must pay the contractor strictly in accordance with the terms of the construction contract; and except as otherwise agreed, payment must be made within 20 days after the end of the interim billing period or of the final billing on the project. Except as otherwise agreed, late payments incur interest at a statutory rate. Then, a contractor must pay a subcontractor within seven days of receipt of any payments from the owner related to that subcontractor’s work and materials or within seven days of receiving the subcontractor’s invoice, whichever is later. Late payments are subject to statutory interest rates. Exceptions are made, allowing for withholding of payment, for good faith disputes arising under the contract. If arbitration or litigation is commenced and it is found that an owner, contractor or subcontractor failed to comply with the payment terms of the Act, then the arbitrator or court shall award as a penalty 1 percent per month for all sums wrongfully withheld, which penalty is in addition to what other damages are established. In addition, the substantially prevailing party to any proceeding to recover payment covered by the Act must be awarded reasonable attorney’s fees and expenses. The Act does not apply to contracts entered into by the Department of Transportation. Contracts Excluded: Under $125,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Maine Revised Statutes, Title 14, Chapter 205, Subchapter 3, §871.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Maine — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Maryland

**Performance bond threshold:** a construction contract exceeding $100,000

**Payment bond threshold:** a construction contract exceeding $100,000

**Bond amount:** 50 percent of the total amount payable under the prime contract

**Claim deadline:** no more than one year after the public body finally accepts the work performed under the contract

**Preliminary notice required:** must give written notice to the prime contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the material for which such claim is made

**Statutory citation:** Maryland Code Annotated, Finance and Procurement, Title 17, §§17-101 to 17-111

> MARYLAND Amount of Bond: 50 percent of the total amount payable under the prime contract. Labor and Material Covered: For the protection of all persons supplying labor and material to the contractor, a subcontractor or a sub-subcontractor in the prosecution of the work provided for in the contract. Notice Required: No notice is required by a person having a contract with the prime contractor. Any claimant having a contract with a subcontractor, or with any sub-subcontractor must give written notice to the prime contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished, or for whom the labor was performed. Such notice shall be served by mailing certified mail to the contractor at the contractor’s residence or a place where the contractor has an office or does business. Time for Suit: Suit must be instituted more than 90 days after the day on which the claimant last supplied labor or materials for which the claim is made, but no more than one year after the public body finally accepts the work performed under the contract. Contracts Excluded: Before a public body awards a construction contract exceeding $100,000, the contractor must provide payment security and performance security that meet the requirements of § 17-104 of this subtitle, in an amount that the public body considers adequate for its protection; and for payment security, at least 50 percent of the total amount payable under the contract. A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if the contract exceeds $50,000 but does not exceed $100,000; and the amount of the security does not exceed 50 percent of the contract amount. Penalty for Failure to Take Bond: No special statutory provision, except in the Transportation Code. The Controller shall furnish a certified copy of a payment bond to a person who submits an affidavit that the person has supplied labor or materials for which payment has not been made. Waiver: An executory contract may not waive payment bond rights. A “pay when paid” provision in an executory contract does not waive payment bond rights. Statutory Citation: Maryland Code Annotated, Finance and Procurement, Title 17, §§17-101 to 17-111.

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Maryland — State public works payment and performance bond thresholds (Little Miller Acts)


**State:** Massachusetts

**Payment bond threshold:** more than $5,000 in the case of the Commonwealth and more than $2,000 in the case of a contract with a county, city, town, district or other political subdivision

**Bond amount:** not less than one-half of the total contact price

**Claim deadline:** Within one year after the day such claimant last performed the labor or furnished the labor, materials, equipment, appliances or transportation included in his claim

**Preliminary notice required:** must give notice of a claim in writing to the general contractor within 65 days after the day on which the claimant last performed labor or furnished labor, materials, equipment, appliances or transportation

**Statutory citation:** Massachusetts General Laws, Part I, Title XXI, Chapter 149, §§26, 27D, 28, 29, 44A

> MASSACHUSETTS Amount of Bond: A bond in the amount of not less than one-half of the total contact price shall be obtained. Labor and Material Covered: All subcontractors and materialmen. Notice Required: A claimant having a contractual relationship with a subcontractor, but not with the general contractor, must give notice of a claim in writing to the general contractor within 65 days after the day on which the claimant last performed labor or furnished labor, materials, equipment, appliances or transportation, stating with substantial accuracy the amount claimed, the name of the party for whom such labor was performed or such labor, materials, equipment, appliances or transportation was furnished. To make a claim covering specially fabricated material the claimant must give the contractor principal written notice of the placement of the order and the amount thereof not later than 20 days after receiving the final approval in writing for the use of the material. The notices shall be served by mailing a sworn statement by registered or certified mail postage prepaid in an envelope addressed to the contractor principal at any place at which the contractor principal maintains an office or conducts his business, or at the contractor principal’s residence, or in any manner in which civil process may be served. Time for Suit: Within one year after the day such claimant last performed the labor or furnished the labor, materials, equipment, appliances or transportation included in his claim, and by prosecuting the claim thereunder by trial in the superior court to final adjudication. Demand for Direct Payment: A written demand for direct payment directly to the awarding authority is a way for a “subcontractor” to be paid by the awarding authority for both progress payments and for final payments on certain kinds of public work. For the purposes of this remedy, a “subcontractor” is defined as being three things: (1) a filed sub-bidder with a written subcontract on public building contracts; (2) for either public buildings or public works, an entity approved by the awarding authority in writing as a person performing labor or both performing labor and furnishing materials pursuant to a contract with the general contractor; and (3) for contracts with the Commonwealth (only) and not awarded under the competitive bid statute for buildings, a person contracting with the general contractor to supply materials used in a public works project for a price in excess of $5,000. Contracts Excluded: Statute requires that bond must be furnished where the amount of the contract is more than $5,000 in the case of the Commonwealth and more than $2,000 in the case of a contract with a county, city, town, district or other political subdivision. New Reform Legislation: Highlights of Chapter 193 of the Acts of 2004 (An Act Further Regulating Public Construction in the Commonwealth) include: filed sub-bid subcontractors must furnish payment and performance bonds on projects where prequalification is required or utilized by the awarding authority; requires an owner’s project manager for projects valued at $1.5 million or more; requires DCAM certification of subcontractors submitting filed sub-bids after January 1, 2005; subcontractors must furnish payment and performance bonds on CM at Risk projects. Public Construction/Prevailing Wage: The Massachusetts prevailing wage laws require that employees on public works projects, except those who perform strictly supervisory functions, be paid a minimum hourly rate set by the Department of Labor and Workforce Development, Division of Occupational Safety (DOS) (Mass. General Laws c. 149, s. 26). Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Massachusetts General Laws, Part I, Title XXI, Chapter 149, §§26, 27D, 28, 29, 44A et al .

Source: <https://fullertonlaw.com/50-state-summary-payment-bond-law>

Massachusetts — State public works payment and performance bond thresholds (Little Miller Acts)