Section 4.3.4.8 Little Miller Act Payment Bonds

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 4.3.4.8 Little Miller Act Payment Bonds

Payment bonds are for the protection of persons supplying labor and materials to the prime contractor or the prime contractor’s subcontractors in prosecution of the work performed in furtherance of the contract. Payment bonds for public works must also be executed by a surety company holding a certificate of authority to transact surety business in the State of Arizona issued by the Director of the Department of Insurance. Personal sureties are not allowed to furnish payment bonds. Like the Federal Miller Act, a claimant may not bring a lawsuit against a payment bond issued under the Little Miller Act or Arizona Procurement Code until the expiration of 90 days after the claimant last furnished labor or supplied materials to the project.

The statutes also contain certain notice requirements that must be complied with as a condition precedent to bringing a lawsuit for recovery. A...