Arizona Little Miller ActThe Little Miller Act is a state statute which is based upon the federal act known as the Miller Act. These acts are vital for regulating the performance bond and surety industries in states, and making sure that contractors can fulfill their responsibilities to not just their clients, but to their suppliers and their subcontractors as well.

Most states have implemented some form of Little Miller Act, and Arizona is no different. Learn all you need to know about the Arizona Little Miller Act statute, what it means for construction in this state, and how you can prepare your company.

Arizona Little Miller Act

The Arizona Little Miller Act allows the filing of liens against contractors who fail to pay subcontractors. These liens are against posted bonds, so technically they are not referred to as liens, but as Little Miller Act claims, or more succinctly as bond claims. This act is provided for and codified in the Arizona Revised Statutes, Title 34, Article 2, sections 34-222 and 224.

Requirements for Bonds

As a general overview, the state requires any company doing work on public projects to be properly bonded. The bonds included must be a performance bond and a payment bond. The performance bond must be equal to the total contracted amount for the bid; the payment bond must be for the amount contracted to any who supply materials or labor to the contractor which is to be paid upon completion of the project.

Such bonds also are required to allow the parties covered to recover attorneys’ fees, should they need to file a claim. In addition, they must be executed by authorized surety companies and filed with the agency who awarded the contract.

The Purpose of Bonds and Claims

Surety bonds exist as a means of assuring customers that a company has the means and responsibility to complete their duties as agreed to under the contract with their clients. Should a company fail to meet these duties, the bond will kick in to reimburse these parties. A bond is a loan to the bonded party, meaning that as a contractor you will be obligated to repay this money. That’s what sets it apart from an insurance policy.

In order to collect on bonds, clients, subcontractors and vendors will file bond claims or little miller act claims, which may need to be pursued in court. This is why they are also allowed to pursue attorneys’ fees under the terms of the bond.

It’s essential that you work with a bond company that has a solid reputation for quality and forthright service, and that’s why many companies in need of Arizona surety bond services choose to work with NSSI: National Surety Services, Inc.

If you would like more information about the Arizona Little Miller Act, or any other aspect of surety bonding services in Arizona, NSSI can help. Explore our website, check out our FAQ and blog, and get in touch with us to start your fast and easy bonding services today.