When you’re running a contracting business you’re eventually going to come across a state Little Miller Act. These statutes are based on the Federal Miller Act, which in turn assures your clients that you’ll complete the work you agreed to complete. It provides peace of mind to both the agency that awarded you the contract and to your subcontractors and vendors that you’ll live up to your end of the bargain.

These bonds of specific types and levels are required for all government jobs. It’s important for you to be well-versed in the specifics of the Miller Act and the state version of the act so that you can always live up to your responsibilities. Learn about the Minnesota Little Miller Act, the bonds it requires you to carry, the level of contract it covers, and where you can get the surety bonds you need.

Federal Miller Act

The Federal Miller Act, originally established in the late 19th century as the Heard Act, and has been continuously updated and evolved since then. Its current incarnation first came into being in 1935, in an effort to fix the weaknesses of the prior act.

But what is the Federal Miller Act? This act requires any company who works on a government contract to carry two types of surety bonds: performance bonds which ensure that you will actually complete the work you are contracted to perform, and which will compensate the government if you don’t; and payment bonds, which provide the same assurance to those vendors, suppliers and subcontractors you bring onto a job.

These bonds are required for all government contracts worth more than $150,000.

State Little Miller Acts

The Federal Miller Act covers only jobs that are undertaken at the Federal government level. Each of the fifty states, however, has enacted its own act that provides the same protections at various levels, for state contracts. Each state has its own version of the Miller Act, appropriately called a Little Miller Act.

The value of contracts that require bonding, the amounts of bonds required, and even the agencies that require such bonding all vary from state to state. Just like any other state, Minnesota has its own version of this statute.

Minnesota Little Miller Act

The Minnesota Little Miller Act involves more complex language than many other state acts. It amounts to a similar protection, however, contracts over $25,000 require carrying performance and payment bonds to provide reassurance to the state agency with whom you contract. The exact value and level of the bonds depend on the value of the contract; those over $100,000 require higher bonds than those between $25,000 and $100,000.

Get the Bonds You Need

If you’re in need of surety bonds to remain in compliance with the Minnesota Little Miller Act, NSSI is here to help. We bring years of experience to the table as well as fast turnarounds and an easy, stress-free process. Get in touch with us today for more information about surety bonding in Minnesota, or to get the process started.