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A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. In a Miller Act or Little Miller Act Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the property owner/public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for redering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.
For state or federal public work projects, contractors do not have the right to lien/foreclose against public property because a private citizen cannot own a public property and the government also has sovereign immunity. Therefore, there are state/federal laws that require the general contractor of a public works project to post a special payment bond to ensure that all lower tier contractors are paid. If they are not paid, they can file a claim against the payment bond for payment. Payment bonds may also be found on private projects; however, it is rarely used for private projects because of the unnecessary additional costs.
In order to have the right to make a claim, you may be required to serve a “Bond Claim Notice” a.k.a. Miller’s Act Notice and Little Miller’s Act Notice to the general/prime contractor and/or surety company. The payment bond notice requirements will vary depending on if it is a federal public works (“Miller’s Act”), a state public work (“Little Miller’s Act”), or a private works..
My Legal Depot will take the confusion out of preparing and serving your bond claim notices. Our experienced staff will research, prepare, and serve your notices promptly and accurately at affordable rates.
My Legal Depot makes it simple to prepare and file your Bond Claim. Complete our simple online questionnaire and we will take care of the rest. If you need customer support, we are just a phone call away (Customer Support: 800-820-2144).
Complete our simple online questionnaire. If you are unable to finish the questionnaire, we will save your answers and you can complete the questionnaire at a later time (save feature only available to registered users). If you need customer support, we are just a phone call away (Customer Support: 800-820-2144).
Our experienced staff will review your order for errors and discrepancies. We will prepare and email you a copy of the document to review within 2 business days.*
After reviewing the document for errors, please reply via email with an approval. Once approved, we will email you a DocuSign link to eSign the Bond Claim documents.
Once the notice is delivered, we will email you the endorsed mail receipts. Once the signature confirmations are received, we will scan and email you a copy. If the notice is returned by the addressee, we will notify you.
*Documents will be prepared and emailed to you within 2 business days. Delays are uncommon, but may occur due to uncontrollable circumstances.
The cost to prepare and serve a Bond Claim Notice is $225.00 total. The flat rate price includes all postage fees.
**Documents will be prepared and emailed to you within 2 business days. Delays are uncommon, but may occur due to uncontrollable circumstances.
A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. Under an Arizona Little Miller Act Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the property owner/public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for rendering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.
The Arizona payment bond laws are often referred to as the “Little Miller Act” because it resembles the federal payment bond laws which are referred to as the “Miller Act.” On most Arizona public work projects, the general/prime contractor must post a payment bond to ensure that certain lower tier contractors and material suppliers are paid. Under Arizona’s Little Miller Act, not all contractors and material suppliers are covered. The parties that are covered by Arizona’s Little Miller Act payment bond are limited to the following:
Other lower tier contractors such as “sub-sub-subcontractors” and a “material supplier to another material supplier” are generally not covered under Arizona’s Little Miller Act payment bond and cannot file a claim. If you do not fall under the protected parties, contact your attorney as there may be special exceptions available.
OPTIONAL PAYMENT BOND FOR PRIVATE WORK PROJECTS: Although not required, a payment bond may be posted and recorded by a general/prime contractor on a private works project. Payment bonds are rarely used for private projects because of the unnecessary additional costs.
Arizona’s Little Miller Act requires that any contractor or material supplier who does not have a direct contract with the general/prime contractor serve a “Preliminary 20-day Notice” and “90-day notice of claim on bond.”[1] The Preliminary 20-day Notice must be served within 20 days after the claimant has first furnished labor, professional services, materials, machinery, fixtures, or tools to the job site.[2] The 90-day notice of claim on bond must be served within 90 days from the last date that the claimant furnishes labor or material for which the claim is made.[3]
Basically, all sub-subcontractors and material suppliers to a subcontractor must serve both of these notices. Failure to properly serve the above-described notices will prevent the claimant from making a claim against the payment bond. A contractor or material supplier who has a direct contract with the general/prime contractor is generally exempt from the above-described notices, but should also serve these notices anyways to be on the safe side.
The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.[4]
List of Cited Statutes and Case Laws for further research
A claim against an Arizona Little Miller Act Payment Bond may be enforced with a lawsuit. The lawsuit is often very complex and should be processed by an attorney specializing in construction law. If you need a referral to a construction law attorney in your area, please contact our office.
The lawsuit to enforce an Arizona Little Miller Act Payment Bond must be commenced no sooner than 90 days nor later than 1 year after the last day the claimant performed labor or supplied materials on the project.[1] Failure to file suit within the time frame will prevent the claimant form enforcing his/her claim against the payment bond.
Due to expensive court costs and long waiting periods, it is best to use the payment bond claim to negotiate for payment and avoid the court system. However, if full repayment is not made within the 1-year timeframe, the claimant should consider moving forward with the lawsuit to enforce the Arizona Little Miller Act Payment Bond. If you wish to file the lawsuit, your attorney will need some time to prepare the initial papers; please don’t wait until the last minute to contact your attorney.
List of Cited Statutes and Case Laws for further research
A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. Under a California Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the property owner/public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for rendering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.
On all California public works project that exceeds $25,000, the general/prime contractor must post a payment bond to ensure that all lower tier contractors, material suppliers, and other potential claimants are paid.[1] If the prime contractor or subcontractor fails to pay their material suppliers, mechanics, contractors, subcontractors, equipment lessors, and other persons who perform work authorized for a “work of improvement,” then the unpaid parties will have rights against the payment bond.[2]
Furthermore, an “express trust fund” to which a portion of a laborer's total compensation is to be paid pursuant to an employment agreement or a collective bargaining agreement for benefits may also file a payment bond claim.[3]
OPTIONAL PAYMENT BOND FOR PRIVATE WORK PROJECTS: Although not required, a payment bond may be posted and/or recorded by the property owner or any contractor on a private works project. Payment bonds are rarely used for private projects because of the unnecessary additional costs.
List of Cited Statutes and Case Laws for further research
In order to have bond claim rights in California, a “Preliminary Notice” must be served to the public entity or property owner, the prime/general contractor, and the construction lender (if any).[1] The term claimant refers to any person or company supplying materials and/or labor to a work of improvement. (The term claimant refers to you.)
The Preliminary Notice should be served no later than twenty days (20) from when the claimant first provided labor, professional services, materials, machinery, fixtures or tools to the job site.[2] If the notice is not served within the required time frame, it may still be served late. However, late notices will limit your bond claim rights to twenty days (20) prior to the service of the notice and anytime thereafter.[3]
For a public works payment bond, the Preliminary Notice is not required for laborers or contractors who have a direct contract with the prime contractor; all other lower tier contractors are required to serve this notice.[4]
If a lower tier contractor fails to serve the Preliminary Notice, they are given a second chance to retain bond claim rights by serving a special “bond claim notice” instead. The bond claim notice must be served to the surety within 75 days after the completion of work as a whole OR if a notice of completion/cessation was filed, then within 15 days from the date the notice was filed.[5] To be on the safe side, it is recommended to serve both notices anyways.
The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day, and including the last, unless the last day is a holiday or weekend, then it is also excluded.[6]
List of Cited Statutes and Case Laws for further research
A claim against a California Payment Bond may be enforced with a lawsuit. The lawsuit is often very complex and should be processed by an attorney specializing in construction law. If you need a referral to a construction law attorney in your area, please contact our office.
The lawsuit to enforce a California public works payment bond must be made within 6 months and 90 days from the project’s completion date.[1] However, if a “Notice of Completion” or “Notice of Cessation” is filed, then you only have 6 months and 30 days from the date the notice was filed.[2] Failure to file suit within the allotted time frame will prevent the claimant form enforcing his/her claim against the payment bond. The limitation for private work payment bonds are similar to the public works deadline, but may be extended if the bond was not recorded.
Due to expensive court costs and long waiting periods, it is best to use the payment bond claim to negotiate for payment and avoid the court system. However, if full repayment is not made within the allotted time frame, the claimant should consider moving forward with the lawsuit to enforce the payment bond. If you wish to file the lawsuit, your attorney will need some time to prepare the initial papers; please don’t wait until the last minute to contact your attorney.
List of Cited Statutes and Case Laws for further research
A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. Under a Nevada Little Miller Act Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the property owner/public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for redering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.
The Nevada payment bond laws are often referred to as the “Little Miller Act” because it resembles the federal payment bond laws which are referred to as the “Miller Act.” On all Nevada public work projects that exceed $100,000, the general/prime contractor must post a payment bond to ensure that certain lower tier contractors and material suppliers are paid.[1]
OPTIONAL PAYMENT BOND FOR PRIVATE WORK PROJECTS: Although not required, a payment bond may be posted by a general/prime contractor on a private works project. Payment bonds are rarely used for private projects because of the unnecessary additional costs.
List of Cited Statutes and Case Laws for further research
Nevada’s Little Miller Act requires that any contractor or material supplier who does not have a direct contract with the general/prime contractor serve a “30-day Notice” and “90-day notice of claim on bond.”[1] The 30-day Notice must be served within 30 days after the claimant has first furnished labor, professional services, materials, machinery, fixtures, or tools to the job site.[2] The 90-day notice of claim on bond must be served within 90 days from the last date that the claimant furnishes labor or material for which the claim is made.[3]
Basically, all sub-subcontractors and material suppliers to a subcontractor must serve both of these notices. Failure to properly serve the above-described notices will prevent the claimant from making a claim against the payment bond. A contractor or material supplier who has a direct contract with the general/prime contractor is generally exempt from these notice requirements. However, to be on the safe side, it is recommended to serve both notices anyways.
Special Rules for Public Highways or Road ProjectsClaims against a public highway or road contractor’s bond shall be filed with the Nevada Department of Transportation within 30 days from the date of final acceptance of the contract.[4] One copy shall be filed in the office of the Department and the remaining copies shall be forwarded to the contractor and surety.[5] A lawsuit to enforce the bond claim must be enforced within 6 months after the filing of the claim.[6]
The term “days” are calculated by calendar days and NOT business days unless otherwise stated. Time is calculated by excluding the first day and including the last day, unless the last day is a holiday, then it is also excluded.
List of Cited Statutes and Case Laws for further research
A claim against a Nevada Little Miller Act Payment Bond may be enforced with a lawsuit. The lawsuit is often very complex and should be processed by an attorney specializing in construction law. If you need a referral to a construction law attorney in your area, please contact our office.
The lawsuit to enforce a Nevada Little Miller Act Payment Bond must be commenced no sooner than 90 days nor later than 1 year after the last day the claimant performed labor or supplied materials on the project.[1] Failure to file suit within the 1 year time frame will prevent the claimant form enforcing his/her claim against the payment bond.
Due to expensive court costs and long waiting periods, it is best to use the payment bond claim to negotiate for payment and avoid the court system. However, if full repayment is not made within the 1-year timeframe, the claimant should consider moving forward with the lawsuit to enforce the Nevada Little Miller Act Payment Bond. If you wish to file the lawsuit, your attorney will need some time to prepare the initial papers; please don’t wait until the last minute to contact your attorney.
Special Rules for Public Highways or Road ProjectsClaims against a public highway or road contractor’s bond shall be filed with the Nevada Department of Transportation within 30 days from the date of final acceptance of the contract.[2] One copy shall be filed in the office of the Department and the remaining copies shall be forwarded to the contractor and surety.[3] A lawsuit to enforce the bond claim must be enforced within 6 months after the filing of the claim.[4]
List of Cited Statutes and Case Laws for further research
A surety bond is comprised of a surety company (the “surety”) that guarantees to one party (the “obligee”) that a second party (the “principal”) will perform its obligation otherwise the surety will step in to honor the obligation. Under a Miller Act Payment Bond, the general/prime contractor (the “principal”) purchases a surety bond to assure the public entity (the “obligee”) that payment will be made to the lower tier contractors and suppliers (the beneficiaries of the payment bond). If payment is not made, the surety and principal are liable for redering payment. The payment bond is very useful if the general/prime contractor or the person who hired you goes bankrupt.
The Miller Act requires that the general/prime contractor post a payment bond for any construction, alteration, or repair of any public building or public work of the United States which exceeds $100,000.[1] This payment bond is intended to ensure that certain lower tier contractors and material suppliers are paid. Under the Miller Act, not all contractors and material suppliers are covered. The parties that are covered by the Miller Act payment bond are limited to the following:
Other lower tier contractors such as “sub-sub-subcontractors” and a “material supplier to another material supplier” are generally not covered under the Miller Act payment bond and cannot file a claim. If you do not fall under the protected parties, contact your attorney as there may be special exceptions available.
List of Cited Statutes and Case Laws for further research
The Miller Act requires that any contractor or material supplier who does not have a direct contract with the general/prime contractor must serve a “90-day notice of claim on bond” within 90 days from the last date that the claimant furnish labor or material for which the claim is made.[1] Basically, all sub-subcontractors and material suppliers to a subcontractor must serve this notice. Failure to properly serve the notice will prevent the claimant from making a claim against the Miller Act payment bond.
A contractor or material supplier who has a direct contract with the general/prime contractor is exempt from this notice requirement. To be on the safe side, it is recommended to serve the notice anyways.
List of Cited Statutes and Case Laws for further research
A claim against a Miller Act Payment Bond may be enforced with a lawsuit.[1] The lawsuit is often very complex and should be handled by an attorney specializing in construction law. If you need a referral to a construction law attorney in your area, please contact our office.
The lawsuit to enforce a Miller Act Payment Bond must be commenced no sooner than 90 days nor later than 1 year after the last day the claimant performed labor or supplied materials on the project.[2] Failure to file suit within the time frame will prevent the claimant form enforcing his/her claim against the Miller Act Payment Bond.
Due to expensive court costs and long waiting periods, it is best to use the payment bond claim to negotiate for payment and avoid the court system. However, if full repayment is not made within the 1-year timeframe, the claimant should consider moving forward with the lawsuit to enforce the Miller Act Payment Bond. If you wish to file the lawsuit, your attorney will need some time to prepare the initial papers; please do not wait until the last minute to contact your attorney.
List of Cited Statutes and Case Laws for further research