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Federal Miller Act Lawyers

Federal Miller Act Lawyers

The Federal Miller Act is designed to protect subcontractors working in public works construction contracts. If you are involved in a federal construction project and seeking advice concerning nonpayment, filing a claim or seeking general counsel for government contract construction, Watson & Associates, LLC‘ attorneys are available for immediate help.

We primarily represent Colorado construction companies and federal contractors nationwide with:

  • Performance bond problems
  • Payment bond disputes
  • Resolving subcontractor disputes
  • Drafting federal construction contract documents
  • Special counsel services
  • Individual surety representation
  • Corporate Miller Act surety counsel

Scope of Representation

Our government contract construction attorneys can represent businesses in Colorado with:

  • Colorado “Little Miller Act” cases
  • Federal projects in Colorado

Our law firm is frequently called upon as special counsel for construction contractors outside of Colorado for:

  • Guidance in Federal Miller Act matters
  • Counseling on federal construction projects across the county

Other Government Contracting Services

In addition to help with miller act cases, out federal construction attorneys also provide services such as:

Miller Act Bond Overview

Miller Act limitations: Most Colorado Federal surety attorneys and Construction lawyers who handle Miller Act bond cases know that the Miller Act Bonds must be in the amount of the contract unless the Contracting Officer (CO) determines in writing that such requirement may be less but not less than the amount of the performance bond. Colorado Surety and Miller Act lawyers should be well aware that the Miller Act bonds are not traditional insurance but a guaranty of payment for timely and satisfactory work only. A subcontractor may not be entitled to payment if there is a material breach of contract.

There are several important elements of the Miller Act (40 U.S.C. §3131 et seq.) of which all contractors, subcontractors and sureties should be aware. For a more in depth analysis read construction surety bonds in plain English.

  • The first element deals with the contracts on which a payment bond is required. In 2000, the Miller Act was amended to increase the required penal sum for a payment bond provided for a federal project. Previously, the penal sum of the payment bond was capped at $2.5 million, regardless of the amount of the subcontract. After the amendment, the cap on the penal sum was eliminated. As such, the payment bond must now equal the full dollar amount of the work performed under the subcontract. While a contracting officer may require a payment bond with a penal sum in excess of the subcontract amount, in no case shall the penal sum of the payment bond be less than the amount of the penal sum of the performance bond. Thus, a subcontractor will now be protected for the full value of the work performed on the project.
  • Second, after the 2000 amendment, the Miller Act now prohibits a prime contractor from requiring its subcontractor to waive its payment bond rights prior to commencing work on the project. Previously, a subcontractor could be required by the prime contractor to waive its Miller Act rights. Our Miller Act attorneys can advise you more on this issue.
  • Finally, the Miller Act now permits a subcontractor to provide notice of its payment bond claim by any means of notification that can be verified by a third party when there is a breach of contract. Before the 2000 amendment, a notice of bond claim could be provided only by registered mail. Now, notice by a private delivery service that provides a receipt, such as Federal Express, and notice by e-mail, if delivery can be verified, will be permitted as an acceptable means of providing notification. Please note that the determination of whether a method of providing notice is acceptable hinges upon whether a third party can verify the delivery of notice.

40 U.S.C. Section 3133(b), formerly 40 U.S.C. Section 270(b) states that persons supplying labor and materials on a government construction project site are protected under a federal Miller Act surety bond in the event of a default. The Miller Act surety bond does not cover third-tier subcontractors and suppliers.

Miller Act Surety

Miller Act Surety Defense: If you are involved or are contemplating bidding on a federal construction project in Colorado, your construction and Miller Act lawyer should advise you that there are two types of sureties. (a) Individual Surety and (b) Corporate Sureties. There is also the type of surety prescribed by FAR 28.201 and 28.204. The Contracting Officer is authorized to accept individual sureties that can produce certain wealth and assets that adequately protect the government’s financial interests.

If you are faced with a claim from a subcontractor or there is a dispute for nonpayment under a Miller Act surety bond, then contact us and let one of our Colorado Miller Act surety law attorneys handle your case. We ensure that we have qualified experts that can articulate damages and that can persuasively compute any damages or defense to your surety claim.

Miller Act Payment Issues

Some Miller Act and surety defense lawyers must understand the difference between the Colorado “Little Miller Act” and the Federal Miller Act. Reading the two closely, one will find that the Colorado Act has some unique differences. As a person seeks to file a claim under either Act, you should seek a qualified Miller Act and Surety defense attorney that understands the jurisdiction of the State of Colorado for either claim. Our trained attorneys can assist you in this area.

When is a Subcontractor Due Payment?

Payment under the Miller Act only applies to work that is satisfactorily completed. This is important when a subcontractor files a claim for non-payment. Another important factor is that the Prompt Payment Act is not held against a surety if the amount of payment is in dispute.

Contact us

If you are a Miller Act Surety and need immediate defense from a skillful law firm, then contact one of our construction attorneys today for immediate help at 720.941.7200

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