FLORALWEBDESIGNS.COM

Many times, the first time that someone is introduced to a surety bond is when your company is required to get a bond in order to get a contract. These requirements developed out of a Federal statute known as the Miller Act. The Miller Act requires that anybody doing work on a federal contract that is greater than $250,000 is required to get a surety bond - usually a payment or performance bond, or both. Following the implementation of this legislation, most state and local municipalities have passed similar regulations, known as Little Miller Acts (inventive, huh?)... This was the standard that most companies were used to. But after the financial crisis in 2008, and the construction fallout that came from that (and resulting litigation), there became a new set of rules. Now, private companies are requiring surety bonds for their projects. Thus, in a large commercial strip mall or other development, a performance or payment bond is being required for each contractor that is working on..