The law that would become the Federal Miller Act was originally enacted in 1894 and was at the time called the Heard Act. It was established to require a performance and payment bond to provide a degree of protection to subcontractors and materials providers. This act, however, was originally held back by a wealth of limitations at the procedural and substantive levels, which led to it being amended and superseded in 1935. At this time it was called the Miller Act.

Since then, individual states have stepped forward to enact their own acts requiring these bonds at levels other than Federal. Such statutes are known as Little Miller Acts, and they are specific to each state. Learn about the Idaho Little Miller Act, what it means for your business, how it works, and why these acts are so important to contracting companies.

Purpose of a Miller Act

The Federal Miller Act and associated Little Miller Acts exist to address primary concerns in the performance of construction projects. These concerns are the completion of jobs bid upon by contractors, and the payment of material suppliers and subcontractors. The means by which these assurances are granted are performance bonds and payment bonds, respectively.

The Miller Act requires that all contractors bidding on a government job carry performance and payment bonds in significant enough sizes to cover their obligations. Little Miller Acts require the same coverage, but at the state level. Thus, when bidding on a state government job, a contractor must carry these bonds at levels specified by the state Act.

Idaho Little Miller Act Statute

The Idaho Little Miller Act allows those who provide materials or subcontract on a project in the state to file a lien against the project to ensure that your proper payment is rendered. Such liens, since they are technically not against actual property but are against bonds, are known as bond claims or little miller act claims.

The Act requires that performance bonds must be carried in the amount of at least 85% of the total contract amount based on successful completion of the agreement. This means if a bid accepted for $100,000,000, you would need to carry a performance bond of at least $850,000.

It also requires that a payment bond be carried, also at least 85% of the value of the total contract, for the purpose of ensuring payment to those supplying materials, labors, or equipment to the contractor during the course of the job.

Other Requirements and Getting Bonded

There are a range of other requirements for state level jobs under Idaho’s statute. These include the ability to withhold up to 5% of the payment required as a retainer. Bonds have to be executed by surety companies that are licensed and authorized to work in the state.

NSSI is licensed and certified to issue bonds in Idaho, and we can help you to ensure that you’re properly covered at all levels. If you need bonding to comply with the Idaho Little Miller Act, we’re ready to help. Get in touch with us to get started today.