If you’re a contractor running a small- to medium-sized company and you’re encountering the term, “Little Miller Act” for the first time, it might be a bit confusing. How is it related to the Federal Miller Act? Is it the same thing? What exactly is the Federal act, and how does it affect you?

At its most basic level, it’s not as complex as you might think. You probably are already aware of the importance of surety bonding services for your company, of protecting the people with whom you contract and those you hire to work for you on a subcontracting basis. Miller Act provisions simply regulate what kind of bonding you need to carry. Let’s look at the Oklahoma Little Miller Act, learn what bonds it requires and what steps you need to take to be sure you’re in compliance for your next government bid.

The Federal Miller Act

At the Federal Level, there have been laws in place since the late 19th century that regulate the need for payment and performance bonds. Such bonds serve to protect those with whom a contractor works, both the contracting body and those that are brought in to provide goods and services necessary to complete the job.

Surety bonding provides a level of security and peace of mind to those with whom you work. If unforeseen disasters occur that prevent you from completing a job, a bond allows these entities to file a bond claim, or lien, to recover their losses.

State Little Miller Acts

The Federal Miller Act in its current form was implemented in 1935. It evolved from and supplanted the Heard Act in 1894, in an effort to overcome the weaknesses of that act. Soon thereafter, the individual states began to pass their own statutes based upon the Miller Act. Collectively, these are referred to as Little Miller Acts.

Each state has its own requirements regarding bonding, what level of contract requires which bonds and the value of said bonds. In general, when you bid on a job, you must abide by either the Federal or the state act, whichever one is the stricter of the two.

Oklahoma Little Miller Act

Where contractors are concerned, the Oklahoma Little Miller Act requirements are fairly straightforward. If you are awarded a contract of at least $50,000 for public works or other state contract, you will need to post a bond that amounts to the total sum of the contract or provide a letter of credit for the same amount. For contracts of lesser value, you need to submit an affidavit of payment for all your debts incurred.

Getting Bonded

Getting bonded is always your best bet in these situations, and NSSI has been here for over two decades to help small and medium-sized businesses compete at higher levels. If you’d like more information on the Oklahoma Little Miller Act, or to get started with the surety bonding process for your next contract, learn about our fast and easy application and get in touch today.