Miller Act 1935

1
Miller Act 1935

• Vishal Shah

2
AGENDA

• Introduction to Miller Act
• Historical Background
• Beneficiaries
• 1999 Amendments
• Compensable Costs
• Legal Notices, Timelines and Legal Acts
• Conclusion

3
INTRODUCTION

• Construction In Federal Projects
• Non Availability of Mechanics Lien
• Qualification checks
• Construction, alteration, or repair of any
  public building or public work of the United
  States
• Little Miller Acts by States

4
HISTORY

• Individual surety
• Herald Act for Corporate surety ( 1894)
• Miller Act ( 1935)
• 50 for Projects under 1 Million
• 40 of the contract amount for projects between
  1 million and 5 million
• and in an amount of 2.5 million for all projects
  exceeding 5 million.

5
Beneficiaries
6
1999 Amendments

• Construction Industry Payment Protection Act of
  1999
• Unless the contracting officer awarding the
  contract makes a written determination supported
  by specific findings that a payment bond in that
  amount is impractical, but In no case shall the
  amount of the payment bond be less than the
  amount of the performance bond

7
1999 Amendments

• Common Problems
• Those Subs/ Material men who do not have direct
  hand in prosecution of work on construction site
  e.g.. Office supplies
• Consultants, Estimators and Other Professionals

8
Compensable Costs

• Labor
• Material
• Rental
• Material not used on site
• Delay and Constructive change costs
• Legal Fees

9
Legal Talk

• Time Limit of 90 days of the last day on which
  supplies or labor were provided.
• One year Duration
• Have written third party verification
• Lawsuits to be filled in Federal District court
• Little Miller Acts provisions

10
Conclusion

• Miller Act and Its usefulness
• Case studies US Navy Vs. Blue Fox
• United States Fidelity Guaranty Co. Vs. United
  States
• Possible Improvements
• Thank You