If you run a contracting business, whether it’s a small startup or a large company, you’ll need to secure bonding for almost any job you bid. Surety bonds are an essential and necessary part of the business. Where insurance protects you from accidents and unforeseen emergencies, bonding protects your clients. It also establishes your reputation as reliable.

When you’re working on government jobs, there are laws in place to regulate which bonds are required. These laws are referred to as the Miller Act, or at the state level, Little Miller Act. Explore the requirements of the Massachusetts Little Miller Act, what it means for your contracting business, and where to get the process started.

Federal Miller Act

The Federal Miller Act was first established in 1935. It superseded and replaced the former Heard Act, which was the first effort to ensure proper performance of a company enacting a Federal contract. It solidified the requirements and provided for enforcement of the bonds a company was required to carry when bidding on a Federal contract.

These bonds are of two varieties. First, a performance bond ensures that you as a contractor won’t abandon or fail to complete the job you contract to complete. If you do, the government will be paid to compensate their loss. Second, a payment bond makes certain that any subcontractors you bring on board, or material suppliers you use will be paid for the services they provide to you.

Little Miller Acts

Across the nation, every state has its own version of the Miller Act, called a Little Miller Act. These acts allow for the state government, subcontractors and vendors to place liens against the bonds held by the contractor, should the contractor fail to complete the requirements of the job. Like the Federal act, they cover performance and payment bonds.

The big difference is that while all Federal contracts exceeding $150,000 require such bonds, each state has its own limits and requirements. Massachusetts is no exception.

Massachusetts Little Miller Act

The Massachusetts Little Miller Act requires that any agency contracting on behalf of the commonwealth or any town district, or other subdivision thereof, must carry payment and performance bonds. These bonds are required for all contracts over $5,000, if the job involves construction, alteration, repair, remodeling or demolition of facilities, and over $2,000 for all other forms of work.

These requirements are somewhat more strict than many other states. In the end, however, it’s necessary to build your reputation as a contractor, and to provide necessary protections to those with whom you contract.

Securing Your Miller Act Bonding

If you’re in Massachusetts and you are in need of surety bonds under the Massachusetts Little Miller Act, National Surety Services, Inc., is here to help. We have decades of experience in bonding for businesses of all sizes, and are well versed in all of the requirements for federal and state surety bonding. Take some time to browse our website, and get in touch with us today for more information, or to start getting the bonds in place that you need to take your company to the next level.