After covering the U.S. Miller Act and Georgia’s Little Miller Act in detail, we are moving on to Alabama’s own version of the Miller Act along with the unique provisions and requirements it lays out.
Alabama’s Little Miller Act has less strict requirements than similar laws applying to federal projects and publicly funded projects in other states. In fact, the entire statute is covered in one section: Alabama Code, Title 39 Public Works, Section 39-1-1. Contractors only need a performance bond providing surety for 100% of the contract value and a payment bond covering at least 50% of the contract value.
Learn more about the Alabama Little Miller Act and its requirements by reading on.
Surety Bonds Required by Alabama’s Little Miller Act
Section 39-1-1 (a) requires that all contractors submitting a bid for a publicly funded contract arrange for a performance surety bond covering the total value of the project. An additional payment bond, “payable to the awarding authority letting the contract,” and valued at 50% of the contract price must be secured for the purpose of recompensing all labor, materials and supplies used by the contractor in the event of non-payment.
According to clause (e), these requirements only apply to contracts valued at $50,000 or more.
Right to Recovery and Notice Under the Alabama Little Miller Act
According to clause (f), the contractor who has been awarded a contract by a state agency must submit notice of completion of the contract in a newspaper published and circulated in the city or county where the work was performed. No one make seek action against the contractor until 30 days after this notice has been posted.
If vendors and subcontractors want to seek repayment for their services, they must submit a demand letter to the contractor within a year of final notice of contract completion being given. Upon receiving the notice, the contractor has 45 days to fulfill the demands sent to them. If the contractor fails to respond, the subcontractor or vendor can then take civil action against the contractor, seeking payment owed as well as attorney fees for their litigation.
Contractors must provide all claimants with a certified copy of the surety bond agreement and the original contract.
For civil actions proceeding to trial, both the subcontractor plaintiff and the contractor defendant have the option to agree to a settlement to finalize the matter. Up until 15 days from the first trial date.
Complying With Alabama’s Little Miller Act
While Alabama’s Little Miller act only explicitly requires payment and performance surety bonds for public contracts valued over $50,000, plenty of other public contracts and commercial contracts have surety bonding requirements in place for all bidders.
Compete for these contracts and prove that you are eligible for big public projects by securing surety bonds or raising your aggregate bonding limit today. You can start by contacting National Surety Services, Inc., where you will receive friendly service and expertise.