XL EagleMiller Act
Miller Act. The Miller Act requires the prime contractor on a federal construction contract over $150,000 to furnish a performance bond and a payment bond. You cannot place a lien on federal property, so the payment bond is how unpaid subcontractors and suppliers get protection.
First-tier subs and suppliers, and second-tier ones with a direct contract with a first-tier sub, can make a claim on the payment bond. Second-tier claimants must give written notice to the prime within 90 days of their last work or delivery, and suits generally must be filed within one year of that last work.
Why it matters to a small contractor
If you are a construction sub on a federal job and the prime does not pay, the payment bond is your safety net. Keep good records of your last day of work and deliveries, and act quickly, because the deadlines are strict.
Example
A small drywall sub finishes work on a federal clinic but the prime stops paying. They send written notice to the prime and its surety within 90 days of their last day on site and make a claim on the payment bond.
Miller Act: common questions
What is the Miller Act threshold?
Performance and payment bonds are required on federal construction contracts over $150,000. The October 2025 inflation adjustment did not change bond thresholds.
Can subcontractors put a lien on a federal building?
No. Federal property cannot be liened. The Miller Act payment bond replaces that protection.
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