**State:** Michigan

**Performance bond threshold:** Any contract exceeding $50,000 for the construction, alteration, or repair of any public building or public work or improvement

**Payment bond threshold:** Any contract exceeding $50,000 for the construction, alteration, or repair of any public building or public work or improvement

**Bond amount:** Each payment and performance bond shall be in an amount fixed by the government unit to be not less than 25 percent of the contract price

**Preliminary notice required:** claimant has within 30 days after furnishing the first of such material or performing the first of such labor served on the principal contractor a written notice

**Statutory citation:** Michigan Compiled Laws, Chapter 129, §129.201

> MICHIGAN BONDS REQUIRED/TWO STATUTES DEPENDING ON TYPE OF PROJECTS State (Non-Highway) and Municipal Projects: Any contract exceeding $50,000 for the construction, alteration, or repair of any public building or public work or improvement of the state or a county, city, village, township, school district, public educational institution, other political subdivision, public authority, or public agency shall require that the principal contractor furnish at his or her own cost to the governmental unit a performance bond and a payment bond. If the principal contractor is a common carrier or the designated operator of a state subsidized railroad, the principal contractor may provide an irrevocable letter of credit from a state or national bank or a state or federally chartered savings and loan association instead of the bonds. Each payment and performance bond shall be in an amount fixed by the government unit to be not less than 25 percent of the contract price. State Highway Projects (Michigan Department of Transportation): State highway jobs under the Michigan Department of Transportation (MDOT) are covered by a separate statute, (MCL §570.101 et seq .). General contractors are required to file a payment bond for the protection of subcontractors and suppliers. Labor and Material Covered: Labor, material, or both used or reasonably required for use in the performance of the contract, including that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental of equipment directly applicable to the contract. A separate statute (MCL §570.101 et seq .) covers state highway projects. Notice Required (State (Non-Highway) and Municipal Projects): No notice is required by a claimant having a contractual relationship with the principal contractor. A claimant not having a direct contractual relationship with the principal contractor does not have a right of action upon the payment bond unless: (a) claimant has within 30 days after furnishing the first of such material or performing the first of such labor served on the principal contractor a written notice which shall inform the principal of the nature of the materials being furnished or to be furnished or labor being performed or to be performed and identifying the party contracting for such labor or material and the site for the performance of such work or the delivery of such materials; and (b) claimant has given written notice to the contractor and the governmental unit involved within 90 days from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material for which the claim was 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. Each notice shall be served by mailing the same by certified mail, postage prepaid, in an envelope addressed to the principal contractor, the governmental unit involved, at any place at which said parties maintain a business or residence. Notice Required (State Highway Projects): Notice of Lien Claim must be filed by subcontractor or material supplier to MDOT as notice of an intent to file a claim against the bond. Even though the claim is against the bond and not real property, the notice is referred to as a Notice of Lien Claim. A form is available on MDOT’s website. Subcontractors must provide the required notice within 60 days after furnishing the last material or supplies or performing the last work covered by their subcontract. However, this period has been modified by MDOT endorsement. A copy of the bond and notice requirements should be requested early in the project to ensure compliance. In the notice, the claimant must specify the work provided, that it relies upon the security of the bond given by the general contractor and directs the MDOT to notify the surety on the bond. Note: Always review the actual bond as notice requirements can be lessened or waived. Notice requirements cannot, however be increased beyond the statutory requirements. Relevant Statutes. Michigan’s Public Act 524 of 1980 (Retainage Act): Contract retainage funds must be segregated and interest must be paid on the retainage when final payment on project is released. The Retainage Act restricts the public owner’s ability to withhold retainage to 10 percent of the first 50 percent of the work in place. Michigan’s Differing Site Conditions statute applies to all public works projects over $75,000. The Act provides for a negotiating process for contractors who encounter unusual or misrepresented conditions while performing public works projects. Statutory Citation: Michigan Compiled Laws, Chapter 129, §129.201 et seq .; Chapter 570, §570.101 et seq .

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

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


**State:** Minnesota

**Payment bond threshold:** Projects under $100,000

**Bond amount:** Performance and payment bonds each to be not less than the contract price

**Claim deadline:** begun within one year after the date of the last work by the claimant on the public project as stated in its notice of claim

**Preliminary notice required:** within 120 days after completion, delivery or provision by the person of its last item of work, the person serves a written notice of claim personally or by certified mail upon the surety that issued the bond and the contractor

**Statutory citation:** Minnesota Statutes, Chapter 574, §§ 574.26 to 574.32

> MINNESOTA Amount of Bond: Performance and payment bonds each to be not less than the contract price. The penalty of each bond must not be less than the contract price, and if after the giving of the bond the contract price is increased, for any reason, the public body may require additional bonds, the penalties of which shall be not less than the amount of the increase, and if the additional bonds are not furnished within 10 days after demand, the work on the contract shall cease until the additional bonds are furnished. In contracts made by the Commissioner of Administration or the Department of Transportation of the state, the Commissioner of Administration or the Commissioner of Transportation, respectively, may fix the amount of the bond penalty, but at not less than three-quarters of the contract price. Labor and Material Covered: Claims of all persons doing work or furnishing skill, tools, machinery or materials, or insurance premiums, equipment or supplies, or sales or wage tax, under or for the purpose of such contract. Notice Required: In the event of a claim on a payment bond by a person furnishing labor and materials, no action shall be maintained unless, within 120 days after completion, delivery or provision by the person of its last item of work, the person serves a written notice of claim personally or by certified mail upon the surety that issued the bond and the contractor on whose behalf the bond was issued at their addresses as specified in the bond. The notice must specify the nature and amount of the claim and the date the claimant furnished its last item of labor or materials for the public work. Time for Suit: No action shall be maintained unless begun within one year after the date of the last work by the claimant on the public project as stated in its notice of claim. Contracts Excluded: Projects under $100,000, Natural Resource Development projects, and projects of the Department of Transportation costing less than $100,000, or involving the permanent or semi-permanent installation of heavy machinery, fixtures, or other capital equipment to be used primarily for maintenance or repair. Penalty for Failure to Take Bond: If the state or other public body fails to get and approve a valid payment bond or securities in place of a payment bond, the public body for which work is done under the contract is liable to all persons furnishing labor and materials under or to perform the contract for any loss resulting to them from the failure. Cases of Note: In Safety Signs, LLC v. Niles-Wiese Construction Co., 840 N.W.2d 34, the Minnesota Supreme Court decreed that a bond claimant must strictly comply with the statutory notice requirements listed in Section 574.31, subd. 2(a) (the claimant must provide notice to the surety and contractor at the address listed on the bond). In doing so, the court rejected arguments that substantial compliance with the notice requirement is sufficient. The Safety Signs opinion confirms that a party seeking to make a bond claim must take care to strictly comply with the mandated service requirements or risk the loss of its claim. Statutory Citation: Minnesota Statutes, Chapter 574, §§ 574.26 to 574.32.

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

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


**State:** Mississippi

**Performance bond threshold:** Whenever a contract is less than $25,000, the owners may elect to make a lump sum payment at the end of the job. In such cases, a performance bond is not required.

**Bond amount:** in an amount not less than the amount of the contract

**Claim deadline:** it shall be commenced within one year after the day on which the last of the labor was performed or material was supplied by the person bringing the action

**Preliminary notice required:** must give written notice to the contractor by hand delivery or certified mail within a 90-day period after the date on which the last of the labor was performed by him or the last of the materials was furnished by him

**Statutory citation:** Mississippi Code Annotated, Title 31, Chapter 5, §§31-5-51 to 31-5-57

> MISSISSIPPI Amount of Bond (excepting state highway projects): A performance bond payable to, in favor of, or for the protection of such public body, as owner, for the work to be done in an amount not less than the amount of the contract, conditioned for the full and faithful performance of the contract; a payment bond payable to such public body but conditioned for the prompt payment of all persons supplying labor or material used in the prosecution of the work under said contract, for the use of each such person, in an amount not less than the amount of the contract. Labor and Material Covered: All persons supplying labor or material used in the prosecution of the work. The labor and/or materials must have been approved by the public authority or its architect or engineer, where required. The Little Miller Act provides that the only persons that a payment bond must protect on a state or local public job are: (a) first tier subcontractors and material suppliers below the prime contractor; (b) second tier sub-subcontractors and material suppliers below subcontractors who give notice of their claims within 90 days of their last addition of labor or materials; and (c) laborers with wage claims who have performed work on the project site. The Little Miller Act does not require protection for materialmen of materialmen, and for subs below the sub-sub level, although the bond itself may include such protection. Notice Required: Persons having a direct contractual relationship with a subcontractor but not the contractor must give written notice to the contractor by hand delivery or certified mail within a 90-day period after the date on which the last of the labor was performed by him or the last of the materials was furnished by him. Time for Suit: When suit is instituted on a performance bond given in accordance with this chapter, it shall be commenced within one year after the obligee shall have made final payment on the contract; provided, however, if the contract is abandoned by the general contractor as bond principal or is terminated by the bond obligee, suit shall be commenced within one year after the earlier of the abandonment by the bond principal or termination by the bond obligee. When suit is instituted on a payment bond given in accordance with this chapter, it shall be commenced within one year after the day on which the last of the labor was performed or material was supplied by the person bringing the action and not later. Any suit brought on a performance or payment bond given in accordance with this chapter shall be brought in the county in which the contract or some part thereof was performed or in the county in which service of process may be obtained upon either the principal or the surety on such bond. Attorneys’ Fees: Whenever any person supplying labor or material in the prosecution of the work brings an action on such payment bond and the trial judge finds that the defense raised to such action by the contractor or surety was not reasonable, or not in good faith, or merely for the purpose of delaying payment, then the trial judge may, in his discretion, award the claimant a reasonable amount to be determined by the trial judge as claimant’s attorneys’ fees in bringing such successful action. Likewise, if the trial judge finds that such action was brought by claimant without just cause or in bad faith, the trial judge may, in his discretion, award the contractor or surety a reasonable amount to be determined by the trial judge as attorneys’ fees for defending such action; provided, however, this section shall not affect the right of any person to recover attorneys’ fees where provided by contract or bond. Contracts Excluded: Whenever a contract is less than $25,000, the owners may elect to make a lump sum payment at the end of the job. In such cases, a performance bond is not required. General Liability Insurance Coverage: Any person entering into a formal contract with the state which exceeds $5,000, or with a county, city, or other public authority which exceeds $25,000, for the construction, alteration, or repair of any public building or public work, before entering into such contract, shall furnish to the public body proof of general liability insurance coverage in an amount not less than $1,000,000 for bodily injury and property damage. Exempted from the provisions of this subsection are any persons who enter into a contract with the Mississippi Department of Rehabilitation Services for the construction, alteration or repair of the home of a disabled individual who has been determined eligible for services by the Mississippi Department of Rehabilitation Services. Payment of Interest on Delinquent Accounts: When a contractor receives any payment under a public construction contract, the contractor shall, upon receipt of that payment, pay each subcontractor and material supplier in proportion to the percentage of work completed by each subcontractor and material supplier. If for any reason the contractor receives less than the full payment due under the public construction contract, the contractor shall be obligated to disburse on a pro rata basis those funds received, with the contractor, subcontractors and material suppliers each receiving a prorated portion based on the amount due on the payment. If the contractor without reasonable cause fails to make any payment to his subcontractors and material suppliers within 15 days after the receipt of payment under the public construction contract, the contractor shall pay to his subcontractors and material suppliers, in addition to the payment due them, a penalty in the amount of ½ of 1 percent per day of the delinquency, calculated from the expiration of the 15-day period until fully paid. The total penalty shall not exceed 15 percent of the outstanding balance due. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Mississippi’s Little Miller Act appears at Mississippi Code Annotated, Title 31, Chapter 5, §§31-5-51 to 31-5-57. (Rev. 1972).

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

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


**State:** Missouri

**Payment bond threshold:** required to be posted for jobs where the general contract is in excess of $50,000.00

**Preliminary notice required:** A Notice must be served within 90 days of the last furnishing or labor or material to the jobsite

**Statutory citation:** Missouri Revised Statutes, Title 2, Chapter 8, §8.250; Title 4, Chapter 34, §§34.057, 34.058.1

> MISSOURI Public Works Payment Bonds: Like most states, Missouri does not allow mechanic’s liens on public property. The alternative to mechanic’s lien rights are public works bonds which are required to be posted for jobs where the general contract is in excess of $50,000.00. Such bonds, among other things, shall be conditioned for the payment of any and all materials, incorporated, consumed or used in connection with the construction of such work, and all insurance premiums, both for compensation, and for all other kinds of insurance, said work, and for all labor performed in such work whether by subcontractor or otherwise. The statutes affecting public works bonds are sometimes known collectively as The Little Miller Act. The term “public works contract” means a contract of the state, county, city and other political subdivisions of the state, except the Missouri transportation department, for the construction, alteration, repair, or maintenance of any building, structure, highway, bridge, viaduct, pipeline, public works, or any other works dealing with construction, which shall include, but need not be limited to, moving, demolition, or excavation performed in conjunction with such work. Some of the items protected by a payment bond differ what is lienable in a private project. Material, lubricants, oil, gasoline, grain, hay, feed, coal and coke, repairs to machinery, groceries and foodstuffs, equipment and tools, consumed or used in connection with the construction of the public improvement and all insurance premiums, both compensation and all other kinds of insurance, are covered by the bond. As with mechanic’s liens, a subcontractor or supplier is required to give Notice before filing suit. The terms of the bond control. However, typically bonds have a 90-day Notice requirement. A Notice must be served within 90 days of the last furnishing or labor or material to the jobsite. The Notice must be served upon the surety, the governmental entity and the general contractor. The Notice must identify the claimant, the amount due and from whom. the terms of the bond will typically be enforced. Oftentimes the bond will provide a one year deadline for the claimant to file suit. One year is shorter than the satute of limitations for contract claims. Some courts have rejected the one year deadline in the bond in favor of the statutory limitations period. Prompt Payment Act: Missouri has both a public and a private Prompt Payment Act. The Private Prompt Payment Act requires prompt payment for private construction contracts (except owner occupied repair or remodeling jobs). Without the PPPA, an unpaid claimant could interest at 9% simple. An attorney’s fee could only be awarded the unpaid creditor if there was a written contract which so provided. The PPPA makes it discretionary with the Judge to award the creditor its attorney’s fee and interest at 1½% per month even for verbal contracts. The Public Prompt Payment Act requires the governmental entity to pay the GC according to terms of the statute unless a contract provides to the contrary. It also addresses retainage. The Public Act requires the GC to pay its subs within 15 days of receipt of payment. Failure to do so within the time required may make the GC vulnerable to pay the claimant’s attorney’s fee and interest at 1½% per month. The statute addresses retainage and circumstances in which less than payment in full is received. The Public Prompt Payment Act also expressly protects professional engineers, architects, landscape architects and land surveyors. Statutory Citation: Varied, but includes St. Louis Revised Code, Chapter 6.04, §6.04.100. Missouri Revised Statutes, Title 2, Chapter 8, §8.250; Title 4, Chapter 34, §§34.057, 34.058.1.

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

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


**State:** Montana

**Payment bond threshold:** A school district may waive their requirements of these bonds for contracts under $7,500. Other state or governmental authorities may waive their requirements for under $50,000.

**Bond amount:** Full contract price for state contracts

**Claim deadline:** within 90 days from and after the completion of the contract and the acceptance of the work by the public officials

**Preliminary notice required:** Not later than 30 days after the date of the first delivery of the provender, material, supplies or provisions to any subcontractor

**Statutory citation:** Montana Code, Title 18, Chapter 1, §18-1-402; Chapter 2, §§18-2-201 to 18-2-208, 18-2-316, 18-2-401, 18-2-403, 18-2-409

> MONTANA Amount of Bond: Full contract price for state contracts. The amount may be fixed by municipal ordinance, but in no event shall the penal sum be less than 25 percent of the contract price. (Mont. Code Ann. §18-2-203). Labor and Material Covered: Provender, materials, supplies, provisions or goods supplied and performed or labor furnished in the prosecution of the public work. (Mont. Code Ann. §18-2-201). Notice Required: Not later than 30 days after the date of the first delivery of the provender, material, supplies or provisions to any subcontractor or agent of any person, firm or corporation having a subcontract with respect to the prosecution of said public work, delivered or sent by registered mail to the contractor. This notice must contain the name of the subcontractor or agent ordering or to whom the same was furnished and state that such contractor or his bond will be held for the same. No suit or action shall be maintained in any court against the contractor or his bond to recover for such provender, provisions, material or supplies or any part thereof unless such notice shall have been given. (Mont. Code Ann. §18-2-206). No right of action shall be had on the bond unless within 90 days from and after the completion of the contract and the acceptance of the work by the public officials the claimant shall present to and file with the public body a notice in writing substantially in the form as required by the statute. (Mont. Code Ann. §18-2-204). Time for Suit: No special statutory provision. In the case where a settlement procedure is provided by a contracting agency, all actions authorized thereunder must be commenced within one year after a final decision has been rendered pursuant to such settlement procedure; and in the case where no settlement procedure is provided by the contracting agency, the action must be commenced by the contractor within one year after the cause of action has arisen. (Mont. Code Ann. §18-1-402). Contracts Excluded: A school district may waive their requirements of these bonds for contracts under $7,500. Other state or governmental authorities may waive their requirements for under $50,000. (Mont. Code Ann. §18-2-201). Penalty for Failure to Take Bond: The municipal corporation is liable to the persons intended to be protected by the bond to the full extent and for the full amount of all the debts so contracted by any subcontractor as well as the contractor. (Mont. Code Ann. §18-2-202). Limit on Retainage for Public Contracts: The maximum retainage applied to construction contracts administered by the State of Montana or any department, agency, or political subdivision of the State of Montana, by any county, municipality, or political subdivision of a county or municipality, or by a school district may not exceed 5 percent if the contractor is performing by the terms of the contract. The retainage percentage withheld by a government entity from a contractor is the maximum retainage percentage that a contractor may withhold from a subcontractor. (Mont. Code Ann. §18-2-316). Public Contracts: Prevailing Wage Law. Montana’s prevailing wage law, often referred to as Montana’s Little Davis-Bacon Law, applies to public works contracts entered into for construction services (heavy, highway and building) or nonconstruction services by the state, county, municipality, school district, or political subdivision in which the total cost of the contract is $25,000 or more involving public funds. It requires that bidders on contracts pay a set rate of compensation, including employee benefits, and that at least 50 percent of the employees of each contractor working on the jobs be bona fide Montana residents. (Mont. Code Ann. §§18-2-401, 18-2-403, 18-2-409). Statutory Citation: Montana Code, Title 18, Chapter 1, §18-1-402; Chapter 2, §§18-2-201 to 18-2-208, 18-2-316, 18-2-401, 18-2-403, 18-2-409.

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

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


**State:** Nebraska

**Payment bond threshold:** any project bid or proposed by the State of Nebraska or any department or agency thereof which has a total cost of $15,000 or less, or (b) any project bid or proposed by any county board, contracting board of any city, village, or school district, public board, or officer which has a total cost of $10,000 or less

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

**Claim deadline:** No suit shall be commenced after the expiration of one year after the date of final settlement of the principal contract

**Preliminary notice required:** upon giving written notice to the contractor within four months from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material

**Statutory citation:** Nebraska Revised Statutes, Chapter 52, §§52-118 to 52-118.02

> NEBRASKA Amount of Bond: The amount of the bond for construction or improvement on a public building shall be not less than the contract price. Mechanic’s lien laws do not apply to these projects. Labor and Material Covered: Labor performed, materials furnished and rental of equipment actually used in the erecting, furnishing or repairing of public building, bridge, highway or other public structures or improvements for the State of Nebraska or any political subdivision thereof. Notice Required: Any person having direct contractual relationship with a subcontractor, but no contractual relationship, express or implied, with the contractor furnishing said bond, shall have a right of action upon the bond upon giving written notice to the contractor within four months from the date on which such person did or 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 directed to the contractor at any place where he maintains an office or conducts his business, or his residence or in any other manner in which a notice may be served. Time for Suit: No suit shall be commenced after the expiration of one year after the date of final settlement of the principal contract. Contracts Excluded: The labor and material payment bonds are not required for (a) any project bid or proposed by the State of Nebraska or any department or agency thereof which has a total cost of $15,000 or less, or (b) any project bid or proposed by any county board, contracting board of any city, village, or school district, public board, or officer which has a total cost of $10,000 or less unless the state, department, agency, board, or officer includes a bond requirement in the specifications for the project. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Nebraska Revised Statutes, Chapter 52, §§52-118 to 52-118.02.

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

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


**State:** Nevada

**Payment bond threshold:** Contracts less than $100,000 are excluded from bond requirements

**Bond amount:** The payment bond shall be not less than 50 percent of the contract price

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

**Preliminary notice required:** if he has, within 30 days after furnishing the first of such materials or performing the first of such labor, served on the contractor a written notice

**Statutory citation:** Nevada Revised Statutes, Title 28, Chapter 339, §§ 339.015 to 339.065

> NEVADA BONDS ON PUBLIC WORKS PROJECTS Amount of Bond: The payment bond shall be not less than 50 percent of the contract price and will be fixed by the contracting body. (NRS § 339.025(1)(b)). Labor and Material Covered: Labor performed or materials furnished in the prosecution of the work. (NRS § 339.025(1)(b)). Notice Required: To principal contractor. No notice is required by a claimant having a contractual relationship, expressed or implied, with the principal contractor. (NRS § 339.035(1)). Any claimant who has a direct contractual relationship with any subcontractor of the contractor who gave such payment bond, but no contractual relationship, expressed or implied, with such contractor, may bring an action on the payment bond, only: (a) if he has, within 30 days after furnishing the first of such materials or performing the first of such labor, served on the contractor a written notice which shall inform the latter of the nature of the materials being furnished or to be furnished, or the labor performed or to be performed, and identifying the person contracting for such labor or materials and the site for the performance of such labor or materials; and (b) after giving written notice to such contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment. (NRS § 339.035(2)(a)). Each written notice shall state with substantial accuracy the amount claimed and the name of the person for whom the work was performed or the material supplied, and shall be served by being sent by registered mail, postage prepaid, in an envelope addressed to such contractor at any place in which he maintains an office or conducts business, or at his residence. (NRS § 339.035(2)(b)). Time for Suit: Suit can be filed 90 days after the date on which claimant performed the last of the labor or furnished the last of the material for which he claims payment. (NRS § 339.035(1)). However, no such action may be commenced after the expiration of one year from the date on which the claimant performed the last of the labor or furnished the last of the material for the payment of which such action is brought. (NRS § 339.055(2)). Contracts Excluded: Contracts less than $100,000 are excluded from bond requirements. (NRS § 339.025(1)). Penalty for Failure to Take Bond: No statutory provision. CONTRACTORS LICENSE BONDS Type of Bond: Before issuing a contractor’s license to a contractor, the State Contractors Board (the Board) requires the that contractor file with the Board a surety bond or cash deposit. (NRS § 624.270). Amount of Bond: Amount fixed by the Board with reference to the contractor’s financial and professional responsibility and operation, but not less than $1,000 or more than $500,000. (NRS § 624.270(4)). Labor and Material Covered: The Bond is issued on form mandated by the Board and benefits the following: (a) As owner of the property to be improved, entered into a construction contract with the contractor and is damaged by failure of the contractor to perform the contract or to remove liens filed against the property; (b) As an employee of the contractor, performed labor on or about the site of the construction covered by the contract; (c) As a supplier or materialman, furnished materials or equipment for the construction covered by the contract; or (d) Is injured by any unlawful act or omission of the contractor in the performance of a contract. (NRS § 624.273). Time for Suit: A lawsuit against the bond must filed with two years after the commission of the act on which the action is based. (NRS § 624.273(2)). Statutory Citation: Nevada Revised Statutes, Title 28, Chapter 339, §§ 339.015 to 339.065.

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

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


**State:** New Hampshire

**Payment bond threshold:** an expenditure of $75,000 in behalf of the state or $125,000 in behalf of a political subdivision

**Bond amount:** a bond in an amount equal to at least 100 percent of the contract price

**Claim deadline:** shall within 90 days after the completion and acceptance of the project by the contracting party file a statement of claim

**Preliminary notice required:** shall within 90 days after the completion and acceptance of the project by the contracting party file a statement of claim

**Statutory citation:** New Hampshire Revised Statutes, Title XLI, Chapter 447, §§447:15 to 447:18

> NEW HAMPSHIRE Amount of Bond: NH public projects, shall if said contract involves an expenditure of $75,000 in behalf of the state or $125,000 in behalf of a political subdivision, and may if it involves an expenditure of less amount, be secured by a bond in an amount equal to at least 100 percent of the contract price, or of the estimated cost of the work if no aggregate price is agreed upon. See N.H. Rev. Stat. §447:16. Labor and Material Covered: All labor performed or furnished, all equipment hired including trucks, all material used, fuels, lubricants, power, tools, hardware and supplies purchased by the principal contractor and used in carrying out said contract, and for labor and parts furnished upon the order of the contractor for the repair of equipment used in carrying out said contract. Notice Required: In order to obtain the benefit of such bond any person, firm or corporation having any claim for labor performed, materials, machinery, tools or equipment furnished, shall within 90 days after the completion and acceptance of the project by the contracting party file a statement of claim. The statement of claim must be filed with the following depending on the project: (1) with the Office of the Secretary of State (if the State is a contracting party), or (2) with the Department of Public Works and Highways (if the State is a party to said contract by or through said department), or (3) with the Office of the Clerk of the Superior Court for the county within which the contract shall be principally performed (if any political subdivision of the State is a contracting party). Note: there is a filing fee for filing the Bond Claim notice with the Superior Court. A copy of the statement of claim shall also be sent by mail to the principal and surety. Certified mail, with return receipt requested is recommended. Time for Suit: Within one year of the claim filing. The Complaint must be filed in the Superior Court for the county within which the contract shall be or was principally performed. Contracts Excluded: Contracts with the state which are under $75,000, and with a political subdivision which are under $125,000, may , but are not required to obtain a bond . (N.H. Rev. Stat. §447:16). Penalty for Failure to Take Bond: No statutory provision. Statutory Citation: New Hampshire Revised Statutes, Title XLI, Chapter 447, §§447:15 to 447:18.

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

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


**State:** New Jersey

**Payment bond threshold:** The state may waive the bond requirements on contracts for its public works not in excess of $200,000

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

**Claim deadline:** within one year of the date of last furnishing of materials and labor

**Preliminary notice required:** shall provide the contractor with written notice via certified mail, prior to furnishing work, that such person is a beneficiary under the bond

**Statutory citation:** New Jersey Statutes Annotated, Title 2A, §§2A:44-143 to 44-147

> NEW JERSEY Amount of Bond: At least 100 percent of the contract price. Labor and Material Covered: All labor performed or materials, provisions, provender or other supplies, or teams, fuels, oils, implements or machinery used or consumed in, upon, for, or about the construction, alteration or repair of any public building or other public work or improvement. Notice Required: Any person who does not have a direct contract with the contractor furnishing the bond shall provide the contractor with written notice via certified mail, prior to furnishing work, that such person is a beneficiary under the bond. Failure to give notice limits the claimant to “the benefits available” from the date on which notice is given and applies to work or materials furnished after the date of receipt of such notice. Time for Suit: No suit shall be brought against the sureties on said bond until after the expiration of 90 days from the date of receipt of notice of the bond claim, but within one year of the date of last furnishing of materials and labor. Contracts Excluded: The state may waive the bond requirements on contracts for its public works not in excess of $200,000. In addition, a public body may waive the bond requirements on contracts for public works at the expense of a county, municipality, or school district, not in excess of $100,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: New Jersey Statutes Annotated, Title 2A, §§2A:44-143 to 44-147.

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

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


**State:** New Mexico

**Payment bond threshold:** For contracts greater than $25,000

**Bond amount:** not less than one hundred percent (100%) of the contract price

**Claim deadline:** No suit on the construction payment bond may be commenced after the expiration of one year from the date of final “settlement” of the contract as defined by statute

**Preliminary notice required:** must serve written notice to the principal contractor within ninety (90) days from the date on which such person performed the last of the labor or furnished or supplied the last of the material

**Statutory citation:** New Mexico Statutes Annotated, Chapter 13, Section 4, §§ 13-4-1 to 13-4-24; Chapter 48, Section 2A, §§ 48-2A-1 to 48-2A-12

> NEW MEXICO Amount of Bond: For contracts greater than $25,000 (NMSA § 13-4-18.A), the prime contractor shall deliver to the state agency or local public body administering the contract for the public works, and with the prime contractor as bond principal, a payment bond for the protection of all persons supplying labor and/or material to the contractor or its subcontractors for performance of the work provided for in the prime contract (NMSA § 13-4-18.A(2)). For contracts of $25,000 or less, the public body, in its sole discretion, may nevertheless require the prime contractor to supply a payment bond in compliance with NMSA § 13-4-18.E. The size of the construction payment bond must be not less than one hundred percent (100%) of the contract price. NMSA § 13-4-18.A(2). The state purchasing agent or central purchasing office, in their discretion, may reduce this amount to not less than fifty percent (50%) of the contract price, as long as the state agency or local public body self-insures the percentage that is reduced from the contractually required payment amount. NMSA § 13-4-18.B-C. Labor and Material Covered By the Bond: All just claims for labor performed, for materials and supplies furnished, for the work of construction, alteration, improvement or repair of any public buildings, structure or highway or for any public work for which full payment has not been made within ninety (90) days following the last supply of labor, materials or equipment for which the claim is made (NMSA § 13-4-19.B; see generally , NMSA § 13-4-1), that is furnished under the original contract or under any subcontract executed pursuant to the original contract (NMSA § 13-4-18.A(2)). Notice Required: Any person having a direct contractual relationship with a subcontractor but no contractual relationship, either express or implied, with the principal contractor, must serve written notice to the principal contractor within ninety (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. NMSA § 13-4-19.B. That person must state 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. Id. Such “notice shall be served by mailing the same by 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, or in any manner in which the service of summons in civil process is authorized by law.” NMSA § 13-4-19.B. Time and Contents of Suit: No suit on the construction payment bond may be commenced after the expiration of one year from the date of final “settlement” of the contract as defined by statute. NMSA § 13-4-19.D. Claimant in such suit shall notify the obligee named in the payment bond at the beginning of the action and shall state the amount claimed and that no judgment shall be entered in such action within 30 days after giving such notice. NMSA § 13-4-19.C. “If the amount realized on the bond is insufficient to discharge all claims in full, the amount shall be distributed among the parties entitled thereto pro rata .” Id . The suit shall be filed in the name of the state of New Mexico for the use of the person asserting the bond claim in court. NMSA § 13-4-19.D. Penalty for Failure to Take Bond: “If a contractor fails to deliver the required performance and payment bonds, the contractor’s bid shall be rejected, [and] its bid security shall be enforced to the extent of actual damages.” NMSA § 13-4-18.A. STOP NOTICES For What Projects: Residential properties of four or less units only. NMSA § 48-2A-2 (“Stop Notice Act”). The statute explains the purpose of the Act: The legislature finds there are practices within the industry of constructing residential properties containing not more than four dwelling units resulting in certain financial inequities and, therefore, declares that the purpose of the Stop Notice Act is to: provide for timely payment by an original contractor to persons contracted with to furnish labor or materials incorporated or to be incorporated in residential construction; define stop notices and their legal usage; encourage construction lenders to assert reasonable supervision, monitoring and control of funds disbursed to the original contractor for the timely payment of labor or materials; restrain and bar diversion of funds for purposes not directly involved with construction of the residential site improvement; and provide for criminal penalties. Whom Do You Serve: To exercise stop notice rights, a stop notice claimant must serve a preliminary notice of right to lien upon the owner and construction lender within twenty (20) days after first furnishing materials or labor to the project. NMSA § 48-2A-5(B). Service can be accomplished by personal service (“hand delivery”) or by mail, with a return receipt requested. NMSA § 48-2A-5(B), incorporating § 48-2A-6(1) and (2). Late notice may be served, but the stop-notice claimant will lose rights for materials and labor furnished more than 20 days prior to the service of notice. NMSA § 48-2A-5(C). The Stop Notice must be delivered and thereby served no earlier than twenty (20) days or later than thirty (30) days from the date the subcontractor or materialman presented to the original (prime) contractor his “request for payment.” NMSA § 48-2A-5(D). The “request for payment” is not defined by NMSA § 48-2A-3 (“Definitions”), but it is distinct from the preliminary notice by virtue of the fact that “request for payment” appears at NMSA § 48-2A-5.A(3), while “preliminary notice” appears at NMSA § 48-2A-5.A(2). Additionally, it is important to note that, even where a materials supply is not in direct contract with the prime contractor, even the materials supplier must serve a “request for payment” upon the prime. Important practice tip : It is important to note that NMSA § 48-2A-5(D) uses the language “original contractor” ( Note well : In Subsection D, “contractor” is singular ) for service of a request for payment. If the project has had a succession of prime contractors, then the best practice is to serve the request for payment upon both the original and the successor prime contractors. Indeed, NMSA § 48-2A-5.A(3) uses the plural “original contractors” to suggest exactly that both the original and successor contractors must be served with a request for payment. Indeed, NMSA § defines “original contractor” as “any contractor who has an express contractual relationship with the owner or in the case when the owner is the contractor, the owner.” Consult with a New Mexico-licensed attorney to determine the exact contents, time for filing, parties to be served and form of service requirements for the “request for payment.” Practice tip : Despite the supportive language on the legislative prologue, the New Mexico Stop Notice Act presents more compliance challenges for a claimant than either Arizona or California and is clearly intended by its onerous requirements and penalties to discourage the use of a Stop Notice. A stop notice claimant must be careful to obtain and serve a copy of a surety bond with the notice, infra , and thread the needle on the ten-day window for service following the undefined service upon the prime contractor of a “Request for Payment.” Finally, the misdemeanor criminal penalty that attaches to any failure to “deliver” a “claim satisfied” notice to all parties who received the bonded stop notice following satisfaction of the debt, suggests that the legislature is disingenuous in its encouraging prologue for the Stop Notice Act, and that the use of a Stop Notice is not even worth the effort and risks involved. The costs and nuisance of obtaining a 125% surety bond, or the cash collateral alternative provided by NMSA § 48-2A-7.B (“Stop notices; bonds”), and the potential criminal penalties have likely served an obviously intended legislative purpose of discouraging many otherwise viable stop notice claimants from pursuing their statutory rights. Contents: A stop notice will not be effective unless it is signed under oath by the claimant or the claimant’s agent, accompanied by a bond equal to one hundred and twenty-five (125%) percent of the claim stated in the stop notice (pursuant to NMSA § 48-2A-7.A-B), states the name of the claimant, the date of filing the preliminary notice, the date the claimant served his request for payment on the original contractors, a description of the labor or materials furnished or agreed to be furnished, the name of the party who ordered the labor or accepted the materials, the total costs of the labor or materials furnished to the project to date, the balance of the money due, and a demand on the construction lender, if any, or the owner if there is no construction lender, to withhold a sufficient amount of money from the loan funds to satisfy the stop notice demand amount. NMSA § 48-2A-5.A(1)-(10). When Must You File Suit on a Stop Notice: A stop notice claimant cannot file suit prior to thirty (30) days, or later than sixty (60) days, from the date of service of the stop notice, and must mail written notice of suit to the recipient within five (5) days of the date of filing suit. NMSA §48-2A-9(A). IMPORTANT NOTICE OF MISDEMEANOR LIABILITY: The stop notice claimant must also deliver a “claim satisfied” notice to all persons who received a bonded stop notice within ten (10) days from date of satisfaction of the debt forming the basis of the stop notice, or else be guilty of a criminal misdemeanor under New Mexico Statutes Annotated § 31-19-1. (Authority: NMSA § 48-2A-10.D). Importantly, note that “[a] claim satisfied notice shall not be effective unless it contains at least the same information as required in the stop notice including a statement signed by the claimant stating that the claim has been satisfied and the claimant agrees to discharge the stop notice.” NMSA §48-2A-10(C). Practice tip : The assessment of criminal penalties under NMSA § 48-2A-10(C) and (D) should arguably be found constitutionally void for vagueness, but in the interim, a petitioner might have to have been found guilty in order to have standing to challenge the statute. The author strongly recommends that a stop notice be attempted only with the most experienced and skilled New Mexico construction law attorney. Claimant shall not file a lien for payment while the stop notice is being litigated pursuant to a stop notice foreclosure lawsuit in court. NMSA § 48-2A-9.B. Practice tip : The prohibition against filing a mechanic’s or materialmen’s lien demonstrates the disarray and confusion of New Mexico’s lien and stop notice statutory regime. Stop notices are available only upon residential properties of four or fewer units (NMSA § 48-2A-2), while mechanic’s and materialmen’s liens are available only on properties of more than four units (NMSA §§ 48-2-2.1.A). Statutory Citation: New Mexico Statutes Annotated, Chapter 13, Section 4, §§ 13-4-1 to 13-4-24; Chapter 48, Section 2A, §§ 48-2A-1 to 48-2A-12.

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

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


**State:** New York

**Payment bond threshold:** Payment bond may be waived for public works contracts for less than $50,000

**Bond amount:** No special statutory provision

**Claim deadline:** No action on a payment bond shall be commenced after the expiration of one year from the date that the public entity accepted the completion of the project

**Preliminary notice required:** must give written notice to the contractor within 120 days from the date on which the last of the labor was performed or the last of the material was furnished

**Statutory citation:** New York Finance Law, Article 9, §137

> NEW YORK Amount of Bond: No special statutory provision. Labor and Material Covered: Labor or material furnished to the contractor or his subcontractors in the prosecution of the work provided for in a contract for the prosecution of a public improvement for the State of New York. Notice Required: No notice is required by a person having a direct contractual relationship with the principal contractor. Any person having a direct contractual relationship with a subcontractor of the contractor furnishing the payment bond but no contractual relationship, express or implied, with the principal contractor, must give written notice to the contractor within 120 days from the date on which the last of the labor was performed or the last of the material was furnished for which his claim was 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. The notice shall be served by delivering the same personally to the contractor or by mailing the same by registered mail, postage prepaid, in an envelope addressed to the contractor at any place where he maintains an office or conducts his business or at his residence, provided, however, that where such notice is actually received by the contractor by other means, such notice shall be deemed sufficient. Time for Suit: No action on a payment bond shall be commenced after the expiration of one year from the date that the public entity accepted the completion of the project. This limitation does not override the timing provisions/limitations contained in the bond itself and is only acceptable if the bond is otherwise silent. Contracts Excluded: Payment bond may be waived for public works contracts for less than $50,000 or where the contract is not subject to the multiple contract award requirements of Section 135 of the State Finance Law, waiving the bonds is in the public interest and the aggregate amount of the contract is less than $200,000. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: New York Finance Law, Article 9, §137.

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

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


**State:** North Carolina

**Payment bond threshold:** Under $300,000 ($500,000 for state contracts)

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

**Claim deadline:** one year from the day on which the last of the labor was performed or material was furnished by the claimant

**Preliminary notice required:** must give written notice to the contractor within 120 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment

**Statutory citation:** North Carolina General Statutes, Chapter 44A, Article 2, Part 1, §§44A-25 to 44A-35

> NORTH CAROLINA Amount of Bond: 100 percent of the contract price. Labor and Material Covered: All materials furnished or labor performed in the prosecution of the public work, whether or not the labor or materials enter into or become a component part of the public improvement, including gas, power, light, heat, oil, gasoline, telephone services and rental of equipment or the reasonable value of the use of equipment directly utilized in the performance of the public work. Notice Required: Any claimant who has a direct contractual relationship with any subcontractor but has no contractual relationship, express or implied, with the contractor must give written notice to the contractor within 120 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment stating (1) the name and address of the subcontractor giving notice, (2) general description of the real property on which the labor was performed or material was furnished, (3) general description of the subcontractor’s contract, including names and addresses of the parties thereto, and (4) general description of the labor performed and material provided thereunder. This notice is required to be served by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where his office is regularly maintained for the transaction of business or served in any manner provided by law for the service of summons. All contractors must also provide copies of the contractor’s project statement (containing (1) the name of the project, (2) the physical address of the project, (3) the name of the contracting body, (4) the name of the contractor, (5) the name, phone number and mailing address of the agent authorized to accept service of requests for a copy of the bond, notice of public subcontract and notice of claim on payment bond, and (6) name and address of the principal place of business of the surety) to all subcontractors engaged, and subcontractors must provide copes of the contractor’s project statement to all subcontractors they engage. Subcontractors who do not provide the required notice risk losing the right to recover the full amount of their claim from the payment bond. The law requires: Contractors. Contractors must provide a copy of the payment bond within seven days of receiving a written request from a subcontractor or supplier on a public project. Contractors must also prepare a contractor’s project statement (including details about the project, owner, contractor, bond surety and the contractor’s agent designated to receive notices required by the statute) and furnish it to all of their subcontractors at the time they enter into the subcontract. First Tier Subcontractors. At the time of contracting, first tier subcontractors must provide their subcontractors/suppliers with a copy of the contractor’s project statement. Lower Tier Subcontractors/Suppliers. In order to secure the right to assert a bond claim for the full amount being claimed, subcontractors and suppliers who are second tier and lower must provide to the general contractor’s designated agent a notice of public subcontract. This notice must include details about the project, the labor or materials provided, and the parties in the contract chain. The statute does not specify when the notice must be provided, however, bond claims are limited to labor or materials provided by the subcontractor or supplier within the 75-day period before service of the notice of public subcontract. Therefore, the notice should be provided as close as possible to when labor or materials are first provided to the project. An exception exists allowing subcontractors and suppliers to assert bond claims of $20,000 or less even if they have not served notices of public subcontract. Time for Suit: At any time after the expiration of 90 days after claimant performed the last of the labor or furnished the last of the material for which he claims payment, but no such suit may be commenced after the expiration of the “longer period of one year from the day on which the last of the labor was performed or material was furnished by the claimant, or one year from the day on which final settlement was made with the contractor.” Contracts Excluded: Under $300,000 ($500,000 for state contracts), from any contractor with a contract less than $50,000. Penalty for Failure to Take Bond: Designated official who fails to require the bonds guilty of a Class 1 misdemeanor. Statutory Citation: North Carolina General Statutes, Chapter 44A, Article 2, Part 1, §§44A-25 to 44A-35.

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

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


**State:** North Dakota

**Bond amount:** at least equal to the price stated in the contract

**Claim deadline:** upon which a suit is not commenced within one year after completion and acceptance of the project, is barred

**Preliminary notice required:** has given written notice to the contractor, within 90 days from the date on which the person completed the contribution

**Statutory citation:** North Dakota Century Code, Title 48, Chapter 48-01.2, §§48-01.2-01 to 48-01.2-25

> NORTH DAKOTA Amount of Bond: The amount of a bond obtained from a contractor on a public project shall be at least equal to the price stated in the contract. (§48-01.2-10). Labor and Material Covered: The bond is security for all bills, claims and demands paid with preference to labor and material suppliers as to payment. (§48-01.2-10). Notice Required: A person that has furnished labor or material for any public improvement for which a bond is furnished and has not been paid in full within 90 days after completion of the contribution of labor or materials may sue on the bond for the amount unpaid at the time of institution of suit. However, a person having a direct contractual relationship with a subcontractor, but no contractual relationship with the contractor furnishing the bond, does not have a claim for relief upon the bond unless that person has given written notice to the contractor, within 90 days from the date on which the person completed the contribution, stating with substantial accuracy the amount claimed and the name of the person for which the contribution was performed. The notice must be served by registered mail in an envelope addressed to the contractor at any place the contractor maintains an office, conducts business, or has a residence. (§48-01.2-11). Time for Suit: Any claim for any labor, material, or supply furnished for an improvement, upon which a suit is not commenced within one year after completion and acceptance of the project, is barred as a lien or claim against the contractor and the contractor’s surety and any right of setoff or counterclaim may be enforced in any court in this state against the governing body, the contractor, or the contractor’s surety. This chapter does not bar the right of any person who has furnished any labor, supply, or material to any subcontractor to enforce the claim against the subcontractor. (§48-01.2-12). Penalty for Failure to Take Bond: No penalty is codified. Statutory Citation: North Dakota Century Code, Title 48, Chapter 48-01.2, §§48-01.2-01 to 48-01.2-25.

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

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


**State:** Ohio

**Payment bond threshold:** No specific statutory provision

**Claim deadline:** suit must be commenced not later than one year from date of acceptance of the public improvement by the Public Authority

**Preliminary notice required:** is required to serve a Notice of Furnishing on the principal contractor to preserve bond rights within 21 days of first performing labor or furnishing materials

**Statutory citation:** Ohio Statutes, Title 1, Chapter 153, §§153.56, 153.57, 153.571

> OHIO Types of Projects: The bond for Public Projects is a combination bid bond, performance bond and payment bond. Upon a public authority entering into a contract with a successful bidder, the bid bond is automatically “converted” into a combined performance and payment bond. Labor and Material Covered: All labor performed or all materials furnished in carrying forward, performing, or completing a contract for the construction, demolition, alteration, repair or reconstruction of any public improvement. Notice Required: In order to preserve a bond claim on a public project in Ohio, any subcontractor, laborer or materialman who is not in direct contract with the principal (original) contractor, and who are supplying labor or materials that cost more than $30,000, is required to serve a Notice of Furnishing on the principal contractor to preserve bond rights within 21 days of first performing labor or furnishing materials. Failure to serve the Notice of Furnishing within the first 21 days does not defeat all bond rights, merely only allows the bond claim to cover the previous 21 days of work, labor, or material from when the Notice of Furnishing is actually served. The bond claimant is required to serve a statement of the amount due to the surety(ies) within 90 days after acceptance of the project by the Public Authority. The notice should be given to the surety by a method that evidences proof of receipt. The notice should set forth in detail the name of the claimant, the amount of the claim, a description of services or materials which were provided and other information to support and substantiate the claim. Information on who the surety(ies) is/are can be found in the Notice of Commencement prepared by the Public Authority. Frequently, a bond claim on a public project will be served contemporaneously with the filing of a lien on the project funds. Providing to the surety a copy of the lien claim gives the surety helpful information. Time for Suit: No suit shall be brought against the surety until after 60 days after the furnishing of the statement, but suit must be commenced not later than one year from date of acceptance of the public improvement by the Public Authority. Contracts Excluded: No specific statutory provision. Penalty for Failure to Take Bond: No specific statutory provision. Statutory Citation: Ohio Statutes, Title 1, Chapter 153, §§153.56, 153.57, 153.571,

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

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


**State:** Oklahoma

**Payment bond threshold:** Under $50,000

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

**Claim deadline:** No action shall be brought on said payment bond after one year from the date on which the last of the labor was performed or materials or parts furnished

**Preliminary notice required:** must give written notice to the contractor and surety on said payment bond within 90 days from the date on which said person did or performed the last of the labor or furnished or supplied the last of the material or parts

**Statutory citation:** Oklahoma Statutes, Title 61, §61.2

> OKLAHOMA Amount of Bond: 100 percent of the contract amount. Labor and Material Covered: All indebtedness by contractor or his subcontractors for labor and materials and repairs to and parts for equipment used and consumed in the performance of said contract. Notice Required: Any person having direct contractual relationship with a subcontractor performing work on said contract but no contractual relationship expressed or implied with contractor furnishing said payment bond must give written notice to the contractor and surety on said payment bond within 90 days from the date on which said person did or performed the last of the labor or furnished or supplied the last of the material or parts for which such claim is made stating with substantial accuracy the amount claimed and the names of the parties to whom the material or parts were supplied or for whom the labor was done or performed. Such notice is required to 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 together with a copy thereof to the surety or sureties on said payment bond. Time for Suit: No action shall be brought on said payment bond after one year from the date on which the last of the labor was performed or materials or parts furnished for which such claim is made. Contracts Excluded: Under $50,000. Penalty for Failure to Take Bond: No special statutory provisions. Statutory Citation: Oklahoma Statutes, Title 61, §61.2.

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

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


**State:** Oregon

**Payment bond threshold:** Contracts less than $100,000 are excluded from payment bond requirements; or in the case of contracts for highways, bridges and other transportation projects, less than $50,000

**Bond amount:** a payment bond in an amount equal to the full contract price

**Claim deadline:** A claimant may institute an action on the contractor’s bond not later than two years after the person last provided labor or materials

**Preliminary notice required:** must be sent by registered or certified mail or hand delivered no later than 180 days after the day the person last provided labor or furnished materials

**Statutory citation:** Oregon Revised Statutes, Volume 7, Title 26, Chapter 279C, §§279C.380, 279C.390, 279C.600 to 279C.625

> OREGON Amount of Payment Bond: Unless an exemption applies, a successful bidder for a public improvement contract shall promptly execute and deliver to the contracting agency a payment bond in an amount equal to the full contract price, solely for the protection of claimants under ORS §279C.600. (ORS §279C.380(1)(b)). Proper Claimants under a Payment Bond: A person claiming to have supplied labor or materials for the performance of the work provided for in a public contract, including any person having a direct contractual relationship with the contractor furnishing the payment bond or a direct contractual relationship with any subcontractor, or an assignee of such person, or a person claiming moneys due the State Accident Insurance Fund Corporation, the Unemployment Compensation Trust Fund, or the Department of Revenue in connection with the performance of the contract, has a right of action on the contractor’s payment bond, if the person or the assignee of the person has not been paid in full and the person gives written notice of the claim, as required in ORS §279C.605, to the contractor and the contracting agency. (ORS §279C.600(1)). Notice Required: The notice of claim against a payment bond must be sent by registered or certified mail or hand delivered no later than 180 days after the day the person last provided labor or furnished materials or 180 days after the worker listed in the notice of claim by the Commissioner of the Bureau of Labor and Industries last provided labor. (ORS §279C.605(1)). If the claim is for a required contribution to a fund of an employee benefit plan, the notice must be sent or delivered within 200 days after the employee last provided labor or materials. (ORS §279C.605(2)). The notice may be sent or delivered to the contractor at any place the contractor maintains an office or conducts business or at the residence of the contractor. (ORS §279C.605(1)). The notice shall be in substantially the following form: To: [name of the contractor or subcontractor and the name of the state agency or public body] Notice hereby is given that the undersigned [name of the claimant] has a claim for [insert a brief description of the labor or materials performed or furnished and the person by whom performed or furnished; if the claim is for other than labor or materials, insert a brief description of the claim] in the sum of [amount] dollars against the [insert public works bond or payment bond] taken from [name of the principal and, if known, the surety or sureties upon the bond] for the work of [insert a brief description of the work concerning which the bond was taken]. Such material or labor was supplied to [name of the contractor or subcontractor]. (ORS §279C.605(3)). The person making the claim or giving the notice shall sign the notice. (ORS §279C.605(5)). Action on Payment Bond: A person, or his assignee, who has provided proper and timely notice, may institute an action on the payment bond. (ORS §279C.610(1)). Such a lawsuit shall be on the relation of the commissioner, the claimant, or that person’s assignee, as the case may be, and shall be in the name of the contracting agency that let the contract or, when applicable, the public agency or agencies for whose benefit the contract was let. (ORS §279C.610(2)). Time for Filing Suit: A claimant may institute an action on the contractor’s bond not later than two years after the person last provided labor or materials or two years after the worker listed in the commissioners’ notice of claim last provided labor. (ORS §279C.610(3)). Preference for Labor and Materials Claims: All labor and material claims against the payment bond have preference and are superior to all other claims against the payment bond. (ORS §279C.615). Contracts Excluded: Contracts less than $100,000 are excluded from payment bond requirements; or in the case of contracts for highways, bridges and other transportation projects, less than $50,000. (ORS §279C.380(5)). Under ORS §279C.390, certain governmental agencies hold the power to exempt certain contracts from all or a portion of the requirements for a payment bond. If you intend to rely on a payment bond, obtain a copy of it before you execute a contract or agree to perform work. Penalty for Failure to Take Bond: The State of Oregon and the officers authorizing the contract are jointly liable for the labor and material used in the performance of any work under the contract, and for claims due the State Industrial Accident Fund, the Unemployment Compensation Trust Fund and the Department of Revenue, if the contract was entered into with the State of Oregon and the officers of the public body neglected to require the execution of a payment bond. (ORS §279C.625(1)). If the contract was entered into on behalf of a public body other than the State of Oregon and no payment bond was obtained when required, the public body and the officers authorizing the contract are jointly liable for the labor and materials used in the performance of any work under the contract. (ORS §279C.625(2)). Statutory Citation: Oregon Revised Statutes, Volume 7, Title 26, Chapter 279C, §§279C.380, 279C.390, 279C.600 to 279C.625.

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

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


**State:** Pennsylvania

**Payment bond threshold:** Under $5,000

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

**Claim deadline:** An action upon any payment or performance bond must be commenced after the expiration of 90 days, but within one year, after performance

**Preliminary notice required:** may bring an action on the payment bond only if he has given written notice to such contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the materials

**Statutory citation:** Pennsylvania Consolidated Statutes, Title 8, §§191-202

> PENNSYLVANIA Amount of Bond: 100 percent of the contract price. Labor and Material Covered: All labor or materials supplied to the prime contractor to whom the public works contract was awarded or to any of his subcontractors in the prosecution of the work provided for in such contract whether or not the material furnished or labor performed enters into and becomes a component part of the public building or other public work or public improvement including highway work. “Labor or materials” includes public utility services and reasonable rental of equipment, but only for the periods when equipment rented is actually used at the site. Materials supplied by a material supplier to another material supplier are not covered by the bond. Note: Under the Commonwealth Procurement Code, once a contractor has made payment to the subcontractor according to the provisions of the Code, future claims for payment against the contractor or its surety by parties owed payment from the subcontractor which has been paid, are barred. (62 Pa.C.S.A. § 3939(b)). Notice Required: A claimant who has a direct contractual relationship with any subcontractor of the prime contractor who gave a payment bond but has no contractual relationship with such prime contractor may bring an action on the payment bond only if he has given written notice to such contractor within 90 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment, stating with substantial accuracy the amount claimed and the name of the person for whom the work was performed or to whom the material was furnished. Notice shall be served by registered or certified mail, postage prepaid, in an envelope addressed to the contractor at any place where his office is regularly maintained for the transaction of business or served in any manner in which legal process may be served. To municipality. Duplicate copy of financial security to be filed with contracting agency. Time for Suit: An action upon any payment or performance bond must be commenced after the expiration of 90 days, but within one year, after performance. Contracts Excluded: Under $5,000. Penalty for Failure to Take Bond: No statutory provisions. Statutory Citation: Pennsylvania Consolidated Statutes, Title 8, §§191-202.

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

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


**State:** Puerto Rico

**Payment bond threshold:** No special statutory provision

**Bond amount:** a payment bond for not less than one-half the contract amount plus any additions, enlargement or increase thereto

**Claim deadline:** Suit must instituted by all claimants within six months after final acceptance of the work by the Commonwealth of Puerto Rico

**Preliminary notice required:** shall have the right to file suit on the bond without necessity for previous notice

**Statutory citation:** Puerto Rico Laws Annotated, Title 22, Chapter 3

> PUERTO RICO Amount of Bond: Public Bonds. The Commonwealth of Puerto Rico requires a payment bond for not less than one-half the contract amount plus any additions, enlargement or increase thereto. The penal sum of the payment bond required by various authorities in Puerto Rico varies in amount. P.R. Laws Ann., Title 22, Chapter 3, §48. Labor and Material Covered: Public Bonds. The payment bond required by the Commonwealth of Puerto Rico from every contractor who is awarded a contract for the construction, reconstruction, enlargement, alteration or preparation of any public work covers: (a) the payment to the workers and employees for the contractor, of the salaries and wages earned by them in their work; and (b) the payment, to the persons selling, supplying or delivering equipment, tools and material for the work of the price or value of the materials, equipment and tools supplied, sold or delivered. P.R. Laws Ann., Title 22, Chapter 3, §49. Notice Required: Public Bonds. The law of Puerto Rico applicable to bonds taken by the Commonwealth of Puerto Rico first reads that every person who has worked as a worker or employee on or who has supplied, sold or delivered materials, equipment and tools for work and who has not been paid, in whole or in part, his salaries or wages or the price of the materials, equipment and tools sold, delivered or supplied for the work shall have the right to file suit on the bond without necessity for previous notice for recovery of any amount, which may for such reason be owing him. It further reads: “Any person or persons who have a direct contractual relationship with a subcontractor on the work and who have or do not have an expressed or implied contractual relationship with the contractor on the work, who has posted the bond, may institute action against the contractor, the bond of the contractor, the bondsmen of the contractor, or against any of said bondsmen, for the recovery of any part of: (a) any amount which may be owed them by the subcontractor for salaries or wages they have earned as employees or workers of the subcontractor on the work; and (b) any amount which may be owed them by reason of their having supplied, sold or delivered materials, equipment and tools for the subcontractor on the work. Suppliers or sellers of materials, equipment and tools to the subcontractor shall be obligated, before instituting action against the contractor, his bond or his bondsmen, to notify the contractor by registered mail of their claim. At the expiration of 30 days from the mailing of said notice they may institute the action herein authorized. Workers and employees of the subcontractor may institute action at any time without previous notice to the contractor of their claim.” P.R. Laws Ann., Title 22, Chapter 3, §§51, 55. Time for Suit: Public Bonds. Cannot be filed until after 30 days from the date of mailing of notice to the contractor before instituting suit on the contractor’s public work bonds. Suit must instituted by all claimants within six months after final acceptance of the work by the Commonwealth of Puerto Rico. P.R. Laws Ann., Title 22, Chapter 3, §§51, 55. Contracts Excluded: No special statutory provision. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: Puerto Rico Laws Annotated, Title 22, Chapter 3.

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

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


**State:** Rhode Island

**Payment bond threshold:** Any public road or portion thereof or any bridge in which the contract price shall be in excess of $50,000 shall be required to furnish a bond; no exclusion provided for other projects

**Bond amount:** Not less than 50 percent and not more than 100 percent of the contract price

**Claim deadline:** Any time after the expiration of 90 days after the day which the last of the labor was furnished or performed or material or equipment was furnished or supplied by any person claiming, but within two years

**Preliminary notice required:** upon giving written notice to the contractor within 90 days of the date on which the person furnished or performed the last labor, materials or supplies

**Statutory citation:** Rhode Island General Laws, Chapter 37-12, §§37-12-1 to 37-12-11

> RHODE ISLAND Amount of Bond: Not less than 50 percent and not more than 100 percent of the contract price. Labor and Material Covered: All labor performed or materials and equipment furnished. Notice Required: Any person having a direct contract with a subcontractor but no express or implied contract with the contractor furnishing the bond shall only have a right of action upon giving written notice to the contractor within 90 days of the date on which the person furnished or performed the last labor, materials or supplies. The notice must state with substantial accuracy the amount claimed and the name of the party to whom the labor or materials was furnished. The notice shall be served by mailing via certified mail, postage prepaid, in an envelope addressed to the contractor at any place he or she maintains an office or conducts his or her business or his or her residence. Time for Suit: Any time after the expiration of 90 days after the day which the last of the labor was furnished or performed or material or equipment was furnished or supplied by any person claiming, but within two years, or under the maximum time limit as contained within any labor or material payment bond required under §37-12-1, whichever period is longer. In any suit brought under this chapter, such personal notice of the pendency of the suit as the court may order shall be given to all known creditors or persons claiming to be such under the bond as shall not have entered their appearances in the suit. In addition, the notice of pendency must be published in some newspaper in the state of general circulation in the city or town where the work in the contract was carried out. Such publication shall be once a week for three consecutive weeks in such form as is ordered by the court. These notice requirements may, however, be waived by the court. Contracts Excluded: Any public road or portion thereof or any bridge in which the contract price shall be in excess of $50,000 shall be required to furnish a bond; no exclusion provided for other projects. Penalty for Failure to Take Bond: No express statutory provision. Statutory Citation: Rhode Island General Laws, Chapter 37-12, §§37-12-1 to 37-12-11.

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

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


**State:** South Carolina

**Payment bond threshold:** Under $10,000 (highway work)

**Bond amount:** For other public improvement contracts, a performance and payment bond, both equal to 100 percent of the contract price

**Claim deadline:** suit must be brought within one year after plaintiff last supplied materials or labor

**Preliminary notice required:** must give written notice to contractor within 90 days from the date on which claimant did or performed the last of the labor or furnished or supplied the last of the material

**Statutory citation:** South Carolina Code of Laws, Title 29, Chapter 5, §29-5-440

> SOUTH CAROLINA Amount of Bond: For public highway construction contracts, a performance bond for 100 percent of the contract and in no case less than $10,000; payment bond not less than 50 percent of the contract. For other public improvement contracts, a performance and payment bond, both equal to 100 percent of the contract price. Labor and Material Covered: Labor and material supplied in the prosecution of the work. Notice Required: No notice is required by a claimant having a contractual relationship, expressed or implied, with the principal contractor. However, any claimant having a direct contractual relationship with a subcontractor but no contractual relationship, expressed or implied, with the contractor must give written notice to contractor within 90 days from the date on which claimant did or 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 material was furnished or supplied or for whom labor was done or performed. Time for Suit: In no event, may suit be commenced more than one year after the final settlement of the contract with respect to highway work. As to all other state construction, suit must be brought within one year after plaintiff last supplied materials or labor. Contracts Excluded: Under $10,000 (highway work). In the case of other public improvement contracts valued at $100,000 or less, the using agency may waive the bond requirements providing the using agency has protected the state. Penalty for Failure to Take Bond: No special statutory provision. Statutory Citation: South Carolina Code of Laws, Title 29, Chapter 5, §29-5-440.

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

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


**State:** South Dakota

**Payment bond threshold:** The state may waive the bond requirement on contracts of less than $50,000 for any public improvement

**Bond amount:** may be issued for the total cost of the improvements

**Claim deadline:** A party may not sue for payment until six months after complete performance of the obligations of the contract for improvement

**Preliminary notice required:** Notice of a suit must be given to all known creditors informing each of their right to intervene

**Statutory citation:** South Dakota Codified Laws, Title 5, Chapter 18A, §5-18A-14. Title 5, Chapter 21, §§5-21-1 to 5-21-8. Title 9, Chapter 44, §9-44-3

> SOUTH DAKOTA Amount of Bond: Municipal improvement bonds may be issued for the total cost of the improvements. (S.D. Codified Laws §9-44-3). Labor and Material Covered: Labor and material used in the prosecution of the work provided for in the public contract. (S.D. Codified Laws §5-21-1). Notice Required: Notice of a suit must be given to all known creditors informing each of their right to intervene. Notice must also occur by publication in a generally circulated publication for the county where the work is performed once a week for two successive weeks. The first publication must be made at least three months before the time for suit commences. (S.D. Codified Laws §5-21-8). Time for Suit: A party may not sue for payment until six months after complete performance of the obligations of the contract for improvement. (S.D. Codified Laws §5-21-6). Contracts Excluded: The state may waive the bond requirement on contracts of less than $50,000 for any public improvement and $25,000 for any contract for the purchase of supplies or services, other than professional services. (S.D. Codified Laws §§5-18a-14, 5-21-1.1). Penalty for Failure to Take Bond: No penalty is codified. Statutory Citation: South Dakota Codified Laws, Title 5, Chapter 18A, §5-18A-14. Title 5, Chapter 21, §§5-21-1 to 5-21-8. Title 9, Chapter 44, §9-44-3.

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

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


**State:** Tennessee

**Payment bond threshold:** all public contracts (except highways) in excess of $100,000

**Bond amount:** Bond shall be 25 percent of the contract price on all public contracts (except highways) in excess of $100,000

**Claim deadline:** an action shall be brought or claims so filed within six months following the completion of such public work

**Preliminary notice required:** shall, after such labor or material is furnished and within 90 days after the completion of such public work, give written notice to either the contractor who executed the bond or the public official

**Statutory citation:** Tennessee Code, Title 12, Chapter 4, Part 2, §§12-4-201 to 12-4-206; Title 54, Chapter 5, Part 1, 54-5-119 to 54-5-127

> TENNESSEE PUBLIC CONTRACTS AND HIGHWAY PROJECTS Amount of Bond: Bond shall be 25 percent of the contract price on all public contracts (except highways) in excess of $100,000. On highway projects the amount of the bond is fixed by the Department of Transportation (DOT). Labor and Material Covered: All labor or materials used by the contractor or any remote subcontractor. Notice Required: The person furnishing labor and/or material shall, after such labor or material is furnished and within 90 days after the completion of such public work, give written notice to either the contractor who executed the bond or the public official who had charge of the letting of the contract, by return-receipt certified mail or by personal delivery. Such written notice is to set forth: (1) the nature and itemized account of the material furnished or labor done; (2) the balance due; and (3) a description of the property improved. In the case of public work undertaken by a municipality, the required notice or statement, so mailed or delivered to the mayor thereof, shall be deemed sufficient. In the case of public work by any county, the required notice or statement, so mailed or delivered to the county mayor of such county, shall be deemed sufficient. In the case of public work by the state, the required notice or statement, so mailed or delivered to the governor, shall be deemed sufficient. The statute pertaining to highway projects provides that the performance of a highway contract shall not be finally accepted until the general contractor has satisfied the DOT that all materials used by him, his subcontractors, or his agents have been paid for and until laborers and other employees working for him, his subcontractors, or his agents have been fully paid. The DOT is required to take the initiative and publish an advertisement in a newspaper in the county where the work was done 30 days prior to final settlement. Such advertisement must state the date of the proposed final settlement and notify claimants to file notice of claim with the DOT and the contractor’s surety within 30 days after publication of the last advertisement. The notice of claim must be verified by oath and filed after publication of the first advertisement. The DOT is required to withhold, for a period of 60 days after the date of the last advertisement, sufficient funds to pay all claims so filed. If a claimant brings suit against the contractor within such 60-day period, the DOT pays such retained funds into court, otherwise to the contractor. Time for Suit: On public contracts an action shall be brought or claims so filed within six months following the completion of such public work or the furnishing of such labor or materials. All actions on bonds furnished on highway projects shall be commenced within one year following publication of the first newspaper advertisement. Penalty for Failure to Take Bond: A public officer who fails to obtain the bond for a public work commits a misdemeanor and is liable in a civil action to any furnisher of labor or materials who is damaged. There is no similar provision on highway projects. Statutory Citation: Tennessee Code, Title 12, Chapter 4, Part 2, §§12-4-201 to 12-4-206; Title 54, Chapter 5, Part 1, 54-5-119 to 54-5-127.

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

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