A Little Miller Act is something that any contractor wishing to do government work at the state, regional or municipal level will have to face. Based on the Federal Miller Act, these statutes require the carrying and posting of certain surety bonds in order to protect the contract issuer’s interests should the contractor fail to live up to their responsibilities under the agreement.
Surety bonds do much more than protecting your client, however. They protect and establish your reputation as a trustworthy contractor with the ability to back up your work. They give peace of mind to everyone involved with the job. Learn about the Missouri Little Miller Act, the protections it provides, the bonds it requires you to carry, and where you can go to get bonded for your contract.
What Is the Miller Act?
The Miller Act is a federal statute that requires any contracting business that seeks to work on a Federal government job with a contracted value of over $150,000 to carry surety bonds to back up the contract. These bonds take two forms. The first is a performance bond, which assures the agency that you can complete the job you promise. If something occurs that delays or causes you to fail to finish the work, the government agency can get compensated.
The second is a payment bond. This type of bond applies to the subcontractors, vendors and suppliers of materials and equipment you bring on board. This bond promises that you’ll pay the promised amount to these individuals and companies.
What is a Little Miller Act?
A Little Miller Act is similar to the Federal act, only it applies at the state level. Each state has its own version of the Miller Act, specifying the amount of a contract that requires bonding, the types of jobs and agencies that require bonding, and other requirements.
Though a Little Miller Act by its nature requires performance and payment bonds, the specifics of the bonds vary greatly from state to state. If you wish to work in Missouri, you’ll need to understand the requirements of the Missouri Little Miller Act.
Missouri Little Miller Act
In Missouri, the Little Miller Act requires that any company seeking a contract for public works in the amount of over $25,000 carry a performance bond and a payment bond to protect the government entity for whom they’re working, and to protect the interests of those entitled to payment—subcontractors and material supplies providers.
Securing Performance and Payment Bonds
Securing the right performance and payment bonds for your business requires working with a knowledgeable, experienced and respected bonding agency. For decades, National Surety Services, Inc., has offered the best in Missouri Little Miller Act bonding services, and surety bonds for all aspects of the contracting industry.
We offer fast turnaround, an easy and no-hassle application process, and the reputation and experience you need to make sure you have everything you need. If you’re in need of Missouri surety bonding services, contact us for more information and to get started today!