Last updated: May 4, 2026
If you’re bidding on a federal construction project, the Miller Act sets the rules. It’s the federal law that requires you to post performance and payment bonds on most federal contracts above a certain threshold, and it shapes nearly everything about how federal jobs get bonded. Whether you’re a prime contractor going after your first VA hospital build, a subcontractor wondering how you’d get paid if the GC walks, or an attorney advising a client on bond claim deadlines, this guide walks through what the Miller Act says, who it covers, and how to comply.
If your bid clock is running and you need a federal bond fast, call us at 800-333-7800 or request a free quote. Surety Bond Authority has been writing federal construction bonds for over 50 years.
What is the Miller Act?
The Miller Act is the federal statute that requires contractors on federal construction projects to post surety bonds. It’s codified at 40 U.S.C. §§ 3131 to 3134 and was enacted in 1935 to replace the Heard Act of 1894, which had become difficult to enforce.
The reason the law exists comes down to one fact: you can’t put a mechanic’s lien on federal property. If you’re a subcontractor or supplier on a private project and you don’t get paid, you can lien the building and force the issue. On federal property, that remedy doesn’t exist. The Miller Act fills that gap by requiring the prime contractor to post bonds that protect the government and guarantee payment to subcontractors and suppliers.
In short, the Miller Act ensures that:
- The federal government gets the project completed as agreed.
- Subcontractors and suppliers get paid for their work and materials.
- Taxpayer dollars aren’t lost when a contractor defaults.
Who must comply with the Miller Act?
The Miller Act applies to any prime contractor awarded a federal construction contract over $150,000. That covers a wide range of projects: federal buildings, military construction, VA hospitals, federal courthouses, national park infrastructure, federal highways, and more.
For contracts between $35,000 and $150,000, the contracting officer has discretion. The agency may still require bonding or may accept alternative payment protection. Contracts under $35,000 generally don’t require Miller Act bonds, though specific solicitations can vary.
If you’re a prime contractor on a qualifying federal job, you’re responsible for posting the bonds. If you’re a subcontractor, supplier, or laborer, you’re protected by them and you may have the right to file a claim if you go unpaid.
The bonds the Miller Act requires
The Miller Act mandates two specific bonds on qualifying federal projects, and bid bonds are required on most sealed-bid solicitations as a separate matter under FAR Part 28.
Bid bonds
Federal solicitations for sealed-bid construction work generally require a bid bond as part of the bid package. The bid bond guarantees that you’ll honor your bid if you’re awarded the contract and that you’ll provide the required performance and payment bonds when the contract is executed. The federal bid bond is usually written on form SF24 (Standard Form 24), and the bond amount is typically 20% of the bid price or $3 million, whichever is less. For more on how bid bonds work, including who needs them and what they cost, see our bid bonds page.
Performance bonds
Once the contract is awarded, the prime contractor must post a performance bond. This bond guarantees that the contractor will complete the project according to the terms, specifications, and schedule of the contract. If the contractor defaults, the surety has the option to either complete the project itself (often by hiring a replacement contractor) or pay damages up to the bond’s penal sum. For a deeper walkthrough of how these bonds work, see our performance bonds page.
Payment bonds
The payment bond guarantees that subcontractors, sub-subcontractors, suppliers, and laborers on the project will be paid for their work and materials. This is the bond that fills the role a mechanic’s lien would play on a private project. If a sub or supplier goes unpaid, they can file a claim against the payment bond and recover what they’re owed. For more on payment bonds, see our payment bonds page.
Filing a claim under the Miller Act
If you’re a subcontractor or supplier on a federal project and you haven’t been paid, the Miller Act gives you a path to recover. The rules are strict and the deadlines matter, so don’t sit on a claim:
- First-tier subcontractors and suppliers (those who contracted directly with the prime contractor) may file a lawsuit against the payment bond without giving prior notice.
- Second-tier subcontractors and suppliers (those who contracted with a first-tier sub) must give written notice to the prime contractor within 90 days of the last day they furnished labor or materials. Notice must be sent by registered or certified mail, by personal service, or by another method that provides written, third-party verifiable confirmation of delivery.
- All claimants must file suit within one year of the last day they furnished labor or materials. Miss the deadline and your claim is barred.
Suit is filed in the U.S. District Court for the district where the project was performed. Keep meticulous records: contracts, change orders, invoices, delivery tickets, and dates of last work. If you’re advising a client on a potential claim, make sure those records are pulled and preserved before anything else.
Little Miller Acts: state-level equivalents
The federal Miller Act only covers federally funded projects. State and municipal projects are governed by each state’s own version, commonly called a “Little Miller Act.” Every state has one, but the specifics vary.
A few examples of state statutes you may run into:
- California Public Contract Code § 20129 and following
- Texas Government Code Chapter 2253
- Florida Statutes § 255.05
- New York State Finance Law § 137
Project thresholds, bond percentages, claim deadlines, and procedural requirements differ from state to state. Some states track the federal $150,000 threshold; others use different numbers. Some require additional notice steps before filing a claim. If you’re working on a state job, read the bid documents and the relevant statute carefully, or call us and we’ll walk you through it.
The SBA Surety Bond Guarantee Program
If you’re a small contractor with limited financial history and you’re trying to break into federal work, you may not qualify for a Miller Act bond on the open market right away. The U.S. Small Business Administration (the federal agency, not us) runs a Surety Bond Guarantee Program that helps small contractors get bonded on federal and other public projects. Under the program, the SBA guarantees a portion of the bond, which gives the surety carrier the comfort it needs to issue.
You can read about the program at SBA.gov’s Surety Bonds page. We’ve helped many first-time and small federal contractors qualify for bonds through the SBG program. If you think it might apply to you, give us a call.
Quick note on the name: the U.S. Small Business Administration is the federal agency that backs the bond program. Surety Bond Authority is the agency you call to actually get the bond. We work with the SBA program where it makes sense for the client.
How underwriting works on a Miller Act bond
Surety carriers don’t issue Miller Act bonds based on insurance underwriting. They issue based on credit underwriting, which means they want to be sure the contractor can perform and won’t trigger a claim. A surety reviews:
- Financial statements (often CPA-prepared for larger bonds)
- Working capital and net worth
- Project experience and completion record
- Current backlog of work
- Lines of credit and overall financial strength
- Personal credit of owners and guarantors
- Industry reputation and references
Unlike insurance, surety bonds are an extension of the contractor’s credit. If the surety pays a claim, it expects to be reimbursed by the contractor. That’s why underwriters are careful, and it’s also why building a track record with a single surety relationship pays off over time.
For deeper industry resources, the National Association of Surety Bond Producers and the Surety & Fidelity Association of America both publish helpful information for contractors and project owners.
Common Miller Act misunderstandings
A few myths worth clearing up:
- Myth: Miller Act bonds are like insurance. Truth: They’re not. Sureties expect contractors to make them whole if a claim is paid. Bonds are an extension of credit, not insurance.
- Myth: Only large contractors need to worry about Miller Act bonds. Truth: Any prime contractor on a qualifying federal job needs them, regardless of size. The SBA Surety Bond Guarantee Program exists specifically to help small contractors qualify.
- Myth: Subcontractors don’t need to know the rules because the prime handles bonding. Truth: Subs and suppliers are the ones who claim against payment bonds when they go unpaid. Knowing the deadlines (90 days for second-tier notice, one year to sue) is essential.
- Myth: A bid bond is the same as a performance bond. Truth: Different products, different stages of the project. See our bid bonds page for the comparison.
How to get a Miller Act bond from Surety Bond Authority
Here’s the actual process:
- Reach out. Call 800-333-7800, request a quote online, or email info@suretyauthority.com.
- Submit an application. We’ll request basic business information, financials, and project details. For larger bonds, expect to provide CPA-prepared financial statements and a personal financial statement from owners.
- We shop the bond. We work with top-rated surety carriers nationwide and find the best fit for your situation.
- You receive the bond. We issue the bond on the right form (SF24, SF25, SF25A, or whatever the solicitation requires) and deliver it to you for the bid package or contract execution.
If you don’t qualify on the standard market, we’ll explore the SBA Surety Bond Guarantee Program with you. Either way, we work to get you bonded.
Frequently Asked Questions
What is the dollar threshold for Miller Act bonds?
Federal construction contracts over $150,000 require Miller Act performance and payment bonds. Contracts between $35,000 and $150,000 may require alternative payment protection or bonding at the contracting officer’s discretion. Contracts under $35,000 generally don’t require Miller Act bonds.
Does the Miller Act apply to state projects?
No. The federal Miller Act only covers federally funded projects. State projects are governed by each state’s “Little Miller Act,” which has its own thresholds and rules. Always read the bid documents to confirm what applies.
How long do I have to file a Miller Act claim?
You must file suit within one year of the last day you furnished labor or materials on the project. Second-tier subcontractors and suppliers must also give written notice to the prime contractor within 90 days of last furnishing.
What’s the difference between a Miller Act bond and a private project bond?
The Miller Act applies specifically to federal construction. Private project bonds are negotiated between the parties and aren’t governed by the Miller Act. The mechanics are similar, but the legal framework, claim process, and forms can differ.
Can a small contractor get a Miller Act bond?
Yes. Many small contractors qualify on the standard market. Those who don’t can often qualify through the SBA Surety Bond Guarantee Program, which guarantees a portion of the bond and makes it easier for small contractors to get approved.
How much does a Miller Act bond cost?
Pricing depends on your financials, work experience, the bond size, and the carrier. Every situation is different. Call us at 800-333-7800 and we’ll walk you through what your bond is likely to cost based on your specifics.
Can I get a Miller Act bond with bad credit?
Often, yes. We work with carriers across the standard, preferred, and substandard markets, and we can also access the SBA Surety Bond Guarantee Program for qualifying small contractors. Credit is one factor, but financial strength, work history, and the size of the bond all matter too.
Get your federal construction bond today
Federal construction is a different game than private work, and the bonding rules are part of what separates contractors who can compete from those who can’t. Surety Bond Authority has been writing federal construction bonds since 1971. We work with the top surety carriers in the country, we know the SBA Surety Bond Guarantee Program inside out, and we can usually have your bond in hand in days, not weeks.
Call 800-333-7800 to talk to a licensed bond agent, or request your free quote online. For email inquiries, contact us through the website or write to info@suretyauthority.com.
