Bond Thresholds Now $150k!
In the United States, the law requiring contract surety bonds on federal construction projects is known as the Miller Act. This law requires a contractor on a federal project to post two bonds: a performance bond and a labor and material payment bond.
What’s important to know is that the threshold at which these bonds are required has recently been changed. Here is an excerpt from the July/August issue of The NASBP Pipeline, one of our Bond news sources:
Federal Miller Act Increases to $150,000 effective October 1, 2010
As noted in the Federal Register that was issued Monday, August 30, 2010, the Federal Acquisition Regulation (FAR) Councils have instituted the Consumer Price Index increase to the Federal Miller Act that will be effective October 1, 2010. This raises the current threshold for all payment and performance bonds when agencies acquire federal construction contracts from $100,000 to $150,000.
There are varying limits for State and Local Bond requirements. If you have any questions about this change or any other Bond related issue, please contact our Bond Specialists at 262-502-3829 or email Jay Zahn at Jay.Zahn@rrins.com.