Leveraging On The Federal Miller Act To Grow Your Construction Company

By Author: Nathan Becker
Total Articles: 1
Comment this article

If you are in the government construction business, you will concur that this is one of the most risk-prone industries. As a supplier, subcontractor, main contractor, there are myriad issues and laws that need to be guaranteed for the successful completion of projects and ultimately timely payment. It is in this light that the Federal Miller Act law comes into play.

Basics of the Miller Act

As a construction contractor or supplier, you might find yourself having to deal with a construction law firm specializing in this law. This just helps to point out how important this law is in the construction industry. Originally enacted as the Heard Act of 1893, the Miller Act guarantees some rights for you as a government construction contractor, sub-contractor or suppler.

Construction Lawyers thus use this law to help you recover owed monies and clear any other legal matters under contention in the federal project. The Federal Miller Act requires surety bonds by prime contractors on federal construction jobs to ensure everyone involved including the government does not end up the loser. Under the Miller Act, all ...
... projects in excess of $ 100,000 must be bonded.

As your construction law firm will explain, there are two realms of these surety bonds;

Performance bonds; this is basically devised to protect the federal government by avoiding non-performance, delays, contract extensions which could lead to added expenses. Unscrupulous contractors are thus weeded out to ensure federal construction projects are completed smoothly.

Payment bonds; under the construction lien law, you cannot lien a federal construction project. However, through the payment bond, you can still recover payment as it protects labor, material supplies, and suppliers themselves. In most cases, it equals the total amount of the contract as spelled in the terms.

Utilizing the Federal Miller Act

With this hindsight, it becomes easier to operate within the federal projects which were hitherto a no-go zone. The fact that there is a law that compels the prime contractor to pay makes it easier to finish your part of the deal. However, you need construction lawyers to help you in filing claims under the Miller Act.

There are many gray areas under the law and these can only be exploited to your benefit by a specialist in construction law. A reputable construction law firm will help you in payment bond disputes, prime and sub-contractor performance issues, bond notices and preparations, construction claims among other areas.

By using the finest legal representation available within your state, issues in construction lien law, contact drafting and litigation, construction law are dealt more effectively and in an expedited manner. These legal experts have the ability to help you maximize profits in federal projects despite the naysayers, avoid legal pitfalls which can ruin your construction company and help to give you strategies t use in future. Your personnel will also learn invaluable skills from construction lawyers and efficacy will definitely follow in future projects.

The Federal Miller Act has been billed as the only friend in government construction projects and this cannot be gainsaid. Whether you want explanations on your State's Little Miller Acts, surety defenses or anything in between, always use a reliable and experienced construction law firm and your small business will grow tremendously.

Nathan Becker is the author of this article on Cobb Law Group.
Find more information, about Services here