IT'S MILLER ACT REFORM TIME FOR SUBS

After months of negotiating, 23 contractor and surety groups have reached an accord on changes to the Miller Act that could lead Congress to raise the amount of the required payment bond on federal construction projects to the actual contract amount. Under current law, prime contractors are required to post a bond for the payment of subcontractors and suppliers on federally funded projects, but the bond caps out at $2.5 million, regardless of the contract amount. Only the first two tiers of subcontractors and first tier of suppliers are covered. Congressional efforts to update the law stalled last year when the trade groups could not compromise. In the meantime, the administration plans to increase the required payment bond to 40% on projects in excess of $6.25 million.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/08919526
• Corporate Authors:

  McGraw-Hill, Incorporated

  330 West 42nd Street
  New York, NY  United States  10036
• Authors:
  • Winston, S
• Publication Date: 1999-3-15

Language

• English

Media Info

• Features: Photos;
• Pagination: p. 12
• Serial:
  • ENR
  • Volume: 242
  • Issue Number: 11
  • Publisher: McGraw-Hill, Incorporated
  • ISSN: 0891-9526

Subject/Index Terms

• TRT Terms: Bonds; Construction; Contractors; Contracts; Legislation; Subcontractors
• Subject Areas: Administration and Management; Construction; Highways; Law; I10: Economics and Administration;

Filing Info

• Accession Number: 00762856
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 28 1999 12:00AM