Public WorksQuestion 1583 of 1605

The federal 'Miller Act' and its state counterpart 'Little Miller Acts' require, on public construction projects above threshold amounts, that the prime contractor furnish:

a.A homeowner's insurance policy
b.A builder's risk policy naming the taxpayers
c.Payment and performance bonds
d.A mechanics lien waiver from the public agency

Explanation

The federal Miller Act (and state 'Little Miller Acts') require prime contractors on public works over threshold amounts to furnish payment and performance bonds. The payment bond protects subs/suppliers (who cannot lien public property), and the performance bond protects the public agency.

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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