4.3.4.6.1 Federal Projects and the Miller Act

• Jurisdiction: Arizona

Under the provisions of the federal statutes known as the Miller Act, before any contract exceeding an amount of $100,000 for the construction, alteration, and repair of any public building or public work of the United States is awarded, the contractor must furnish a performance bond and payment bond. The performance bond is for the protection of the United States and guarantees the faithful performance of the contract by the contractor.^[115] The payment bond is for the protection of all persons supplying labor and material in the prosecution of the work provided for in the contract.^[116] Additionally, the performance bond must specifically provide coverage for taxes imposed by the United States which are collected, deducted, or withheld from the wages paid by the contractor in carrying out the bonded contract.^[117]

The Federal Miller Act contains specific provisions concerning the procedure to perfect and pursue a claim against a Miller Act payment bond to recover the cost of labor and materials furnished to the project. A claimant may not sue to recover against the payment bond until the expiration of 90 days after the day on which the claimant furnished materials to the project. Additionally, those persons who have no direct contractual relationship...