Monday, January 05, 2009  
Commercial and Construction Surety Bonds  

State Little Miller Acts

Below are brief descriptions of each state's Little Miller Act and links to access the text of each act online. Be sure to click on all links provided for each state as many have more than one section pertaining to surety bonds. In some cases the link will go directly to the language and in others the link will lead to the main search page for that state's code. In such a case simply search under the proper section numbers provided. Remember this is only a reference and the content of the linked sites is not guaranteed by NASBP.

Alabama Ala.Code §39-1-1. Performance bond = 100% construction contract. Payment bond ¹ 100% construction contract price (not less than 50%). Threshold: $50,000.00.

Alaska 36 Alaska Statutes §25.010. Performance and payment bonds ¹ 100% construction contract price (graduated amounts or tiers) Threshold: $100,000.00. A municipality may by ordinance exempt contractors from bonding requirements for projects under $400,000.00.

Arizona Little Miller:Ariz. Rev. Stat. Ann §34-222; Uniform Procurement Act: Ariz. Rev. Stat. Ann. §41-2574 and §28-6923. Threshold is $10,000.00.

Arkansas Ark. Stat. Ann. § 8-44-501 through §18-44-506. Threshold is $20,000 for public works; $1,000 for religious or charitable organizations, and optional for private construction.

California Cal. Civ. Code §3085-3252 and Cal. Contract Code §7103,10221, 10223, 10224. Appears to have a performance bond requirement, but it is unclear. Payment bond ¹ 100% construction contract price (graduated amounts or tiers) and threshold of $25,000.00

Colorado C.S.R. §24-105-202 and C.R.S. §38-126-105 and §38-126-106. Performance and payment bonds ¹ 100% contract price (50h%). Threshold: $50,000.00.

Connecticut Conn. Gen. Stat. § 49-42. Has no mandatory performance bond requirement, per se, although contracting office may require one for projects comprised of a general bid for labor and materials over $25,000 or a sub-bid for labor and materials over $50,000.00. Threshold: $50,000.00.

Delaware 29 Del. C. §6962. Threshold: $50,000, but for contracts less than that amount, the successful bidder must post a letter of credit or other suitable security with the state or contracting county.

District of Columbia D.C. Code Ann. §1-1185.1 through 1-1185.8, and §1-1104 through 1-1108. Performance and payment bonds¹ 100% construction contract price (graduated amounts or tiers).

Florida Florida Statutes §255.05. Threshold: $100,000.00.

Georgia O.C.G.A. §§13-10-1 and 36-91-50 through 36-91-52 and 36-91-70 through 36-91-75. Threshold: $40,000.00.

Hawaii H.R.S. §103D-324. Threshold: $25,000.00.

Idaho Idaho Code §54-1925ff. Performance and payment bonds / 100% construction contract price (amount determined by the contracting body but no less than 50%). Threshold: Not specified.

Illinois 30 ILCS 550. Performance and payment bonds ¹ 100% construction contract price (amount determined by officials, boards, commissions, commissioners, or agents awarding the contract). Threshold: Not specified.

Indiana Ind. Code § 4-13.6-1-1 et seq. and Ind. Code §5-16-5-1 et seq. Performance and payment bonds = 100% construction contract price except for state highway, road and bridge contracts where the bond must be in an amount set by the Highway Commission but not less than the total contract price. Threshold: Transportation: $100,000.00; all others: $150,000.00.

Iowa Iowa Code Chapter 573. Performance and payment bonds ¹ 100% construction contract price (to be determined by official board or officer empowered to let the contract, but not less than 75%). Threshold: $25,000.00.

Kansas Kan. Stat. Ann. §60-1110. Has no performance bond? Threshold: $1,000.00 for transportation; $40,000.00 for all others.

Kentucky KRS 45A. 190. Threshold: $25,000.00.

Louisiana L.R.S. Title 38, Chapter 10. Performance and payment bonds ¹construction contract price (not less than 50%); however, virtually all public contract bonds are for 100% of the contract price and in all cases, the awarding authority requires a 100% combination performance-payment bond. Exception: public contracts of $200,000.00 or less, 50% of the required bond amount may be submitted under certain circumstances. Threshold: $5,000.00.

Maine 14 Me. Rev. Stat. Ann. §871.3B. Threshold: $100,000.00

MarylandMd. State Fin. & Proc. Art., Code §§17-101 through 17-110. Performance and payment bonds ¹ 100% construction contract price; performance bond is for an amount that the public body considers adequate for its protection, and the payment bond is at least 50% of the total contract amount. With the exception of the state or unit of the state, public bodies may require payment, security, or performance security for a construction contract if the contract exceeds $25,000.00 but is less than $100,000.00 and the amount of the security does not exceed 50% of the contract amount. Threshold: $100,000.00.

Massachusetts Mass. Gen. Laws Ann. Ch. 149 § 29. Has no performance bond requirement? Payment bond must be for at least 50% of the total contract price. Threshold: $5,000.00 if contract is with the state and $2,000.00 in the case of a contract with any other jurisdiction.

Michigan MCLA §570.101 et seq. and MCLA §et seq. Performance and payment bonds ¹ 100% construction contract price (an amount fixed by the government unit but not less than 25% of the contract price amount). Threshold: $50,000.00 except for contracts with Dept. of Transportation.

Minnesota Minn. Stat. §574.26. Performance and payment bonds = to 100% total contract price except for transportation, which requires bonds to be in an amount at least 75% of the contract price. Threshold: $10,000.00 except for transportation, which is $75,000.00.

Mississippi Miss. Code Ann. §§31-5-51 through 31-5-57. Threshold: None, except in cases where a contract is less than $25,000.00, the owner may elect to make a lump sum payment at the end of the job; in such case, no performance bond is required.

Missouri R.S. Mo. §107.170, §229.060, §522.300. No statutory requirement for performance bonds; however, various public entities have such requirements as part of procurement practices. Amount of payment bond is to be determined by the officials involved in making contracts for public works. Threshold: $25,000.00.

Montana Mont. Code Ann. §18-2-201 through §18-2-208. Performance and payment bonds = 100% contract amount but cities may reduce amount to 25%. Threshold: $7,500.00 for school districts; all others: $25,000.00.

Nebraska Revised Statutes of Nebraska, 1943 §52-118.01 and 52-118.02. Payment bond required for at least the contract price. Performance bonds not required for state contracts of less than $15,000.00 for state contracts and $5,000.00 for local government contracts unless required in the bid specifications. Threshold: $5,000.00.

Nevada N.R.S. Chapter 339. Performance and payment bonds ¹ 100% construction contract price (shall not be less than 50% of the contract price). Threshold: $35,000.00.

New Hampshire N.H. Rev. Stat. Ann. §447:16, 447:17 and 447:18. Threshold: $25,000.00.

New Jersey N.J. Stat. Ann. §§2A:44-143 to 44-147. Threshold: $200,000.00 for state contracts, and $100,000.00 for contracts of all other jurisdictions.

New Mexico N.M. Stat. Ann. §13-4-18. Generally, performance and payment bonds = 100% construction contract price. Threshold: $25,000.00.

New York State Finance Law § 137. No statutory requirement for bond amount. No performance bond statute; however, several statutes set forth a requirement for a performance bond or authorize a public body to require a performance bond; public agencies proscribe their own bond forms. Threshold: $50,000.00.

North Carolina N.C. Gen. Stat. §§44A-25 through 44A-35. Performance and payment bonds = 100% contract price from any contractor whose contract exceeds $15,000, if the total construction contract is more than $100,000.00.

North Dakota N.D.C.C. 48-02-06.2, 48-02-15, 48-02-17. Threshold: $100,000.00.

Ohio Ohio Revised Code section 153.54. Combined performance and payment bond except for transportation, which requires separate bonds. Threshold: $10,000.00.

Oklahoma 61 Okla. Stat. §§ 1 and 2. Performance bonds are optional to the owner for public construction contracts; payment bonds are mandatory and must be in an amount not less than the total sum of the contract. Threshold: $13,500.00.

Oregon ORS §§279.526-.542. Threshold: No threshold specified but the Public Contract Review Board or the local contract review board may exempt certain contracts from security and bond requirements.

Pennsylvania 8 P.S. §§191-202. Threshold: $5,000.00.

Rhode Island R.I. Gen. Laws §§37-12-1 et. seq. Performance and payment bonds ¹ 100% construction contract price (must be at least 50% but no more than 100%). Threshold: $500.00.

South Carolina S.C. Code Ann. §11-35-3030. Threshold: $10,000.00 for transportation; all other public projects of $100,000.00 or less, the using agency may waive bond requirements if the state is protected.

South Dakota S.D. Codified Laws Ann. §§5-21-5 through 5-21-7. Threshold: $25,000.00.

Tennessee Tenn. Code Ann. §12-4-201 et seq. Performance and payment bonds ¹ 100% construction contract price (must be 25%). Threshold: $100,000.00.

Texas Tex.Prop.Code Chapter 53 and Tex. Gov't Code Chapter 2253. Threshold: $25,000.00.

Utah Utah Code Ann. §14-1-18,38-1-27, and 63-56-38. Threshold: No statutory provision.

Vermont Vt. Stat. Ann Title 19 §10(9). Performance and payment bonds apply to transportation projects only. Amount of performance and payment bonds to be determined by transportation agency. Threshold: No statutory provision.

Virginia Va. Public Procurement Act, § 11-35 et seq. Threshold: $100,000.00.

Washington Rev. Code Wash. §39.08.010. Performance and payment bonds = 100% contract amount except for cities and towns, which by general ordinance may fix and determine the bond amount. Threshold: $100,000.00? or $5,000.00?

West Virginia W. Va. Code §38-2-39. Has no performance bond. Payment bond = to reasonable cost of materials, machinery, equipment, and labor required for completion of the contract.

Wisconsin Wisc. Stat. §779.14. Has combined performance and payment bond. Threshold: $10,000.00 for contracts with state; all others, $500.00.

Wyoming Wyoming Statutes Annotated, Vol. 5 §`16-6-112. Requirement of a performance bond is not clear. Payment bond must = at least 50% of the full contract price for projects more than $7,500.00 but under $100,000. For projects over $100,000, the appropriate officer, agent or the governing body may fix a sufficient amount.

United States Miller Act Title 40. Public Buildings, Property, and Works, Chapter 3 Public Buildings and Public Works Generally, Section 270a

Sources:

1999 General Contractors' Manual: A Summary of State Laws and Regulations Affecting General Contractors. American Association of America. 1999

Manual of Credit and Common Laws. National Association of Credit Management. 91st edition. 1999.

Public Works Bond Statutes. Surety Association of America. 1999

Communication from Andrew Ruck, Duane, Morris and Heckscher LLP, November 18, 1999, Unpublished.

Disclaimer: The information provided above is meant only as an informational resource to Atlynx Surety Bonds, LLC. clients and affiliates and is representative of current state laws to the best of our knowledge. Nothing herein is to be used on a legal basis or distributed for a fee. The content of linked web sites is not monitored by Atlynx Surety Bonds, LLC. and we do not guarantee the accuracy of the web sites. Atlynx Surety Bonds, LLC. is not liable for any misrepresentations or inaccuracies contained on the other web sites.

 

Atlynx Surety Brokers, LLC.
777 Zeckendorf Blvd.
Garden City, NY 11530-2127
Phone: 516-745-7520
Fax: 516-794-0380

©1999-2007 Atlynx Surety Brokers, LLC.
All text, images, code, JavaScript and content on this site, except for the replication of public statutes and bond forms, are the property of Atlynx Surety Brokers, LLC. or have been licensed to us by the owners. All are protected bythe copyright laws of the U. S. and other countries. The use of any suchprotected material in any medium is a violation of those laws and is prohibited.
Site Built by LRX Systems, Inc.