Wyoming, just like every other state, has laws in place designed to provide peace of mind to the government and to subcontracting bodies when a construction company bids on a job. These laws are based upon a Federal act called the Miller Act, which regulates and requires bonding be in place to protect against irresponsibility or failure to complete jobs on the part of a contractor.
State level laws are colloquially referred to as Little Miller Acts because they’re based off the national-level statute. Understanding how these acts work is key to growing your construction company and allowing you to compete at the highest levels. Discover the requirements for bonding in place under the Wyoming Little Miller Act, and learn where you can go to get the surety you need for compliance.
Federal vs. State Miller Acts
The Miller Act exists at the Federal level to protect the government against contractors who are irresponsible, can’t live up to their commitment or who suffer serious unforeseen circumstances preventing them from finishing a job. It requires them to carry two types of bonds: payment bonds and performance bonds, against which the government can file a claim if the job goes south and recompense is needed.
The Little Miller Acts are the same idea but are implemented at the state level. While each state has its own statutes, you’ll be required to abide by the stricter set of laws, depending on the job at hand.
Payment vs. Performance Bonds and Claims
While the statute is in place nominally to protect the government, it also protects the people with whom you work to complete your contract. A payment bond ensures that people to whom you owe money get paid.
When you do a job, you’ll likely bring on subcontractors in the form of extra laborers and skilled workers. You’ll also rent equipment and machinery and buy materials. All of these people need to be paid, and if you fail to pay them, they can file a bond claim against your payment bond to get the money they’re owed.
Performance bonds, on the other hand, directly protect the contracting body (the government). If you fail to complete the job, they stand to lose money, which they can recover by filing a claim against your performance bond.
Wyoming Little Miller Act
In Wyoming, the state Statutes Title 16, Chapter 6 lays out the Wyoming Little Miller Act regarding public works contracts. Any job in Wyoming valued at over $7,500 requires posting a bond to cover the work. Any job of over $100,000 requires either a bond or other acceptable guarantee, and in any case, the guarantee or bond cannot be less than 50% of the contract value.
Getting Payment and Performance Bonds
The Wyoming Little Miller Act has very specific provisions for the kinds of jobs it covers and the types and amounts of bond required. If you need more information, have questions, or just want to get your bonding in place, NSSI is ready to help. Give us a call to start your Wyoming surety bond services today!