Little Miller Act - AbsoluteAstronomy.com

A "Little Miller Act" is a state statute, based upon the federal Miller Act

Miller Act

The Miller Act requires prime contractors on some government construction contracts to post bonds guarantying both the performance of their contractual duties and the payment of their subcontractors and material suppliers.-Background and Purpose:The Miller Act addresses two concerns that would...

, that requires prime contractors on state construction projects to post bonds guarantying the performance of their contractual duties and/or the payment of their subcontractors and material suppliers.

Typical statutory provisions

Little Miller Acts typically require the posting of a performance bond

Performance bond

A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.A job requiring a payment & performance bond will usually require a bid bond, to bid the job...

- a type of surety bond

Surety bond

A surety bond is a promise to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract...

that covers the cost of substitute performance if the prime contractor fails to fully perform his duties under the contract.

Little Miller Acts also typically require the posting of a payment bond

Payment Bond

-Payment Bond:A payment bond is a surety bond posted by a contractor to guaranty that his subcontractors and material suppliers on the project will be paid. They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. They are often required in...

, which provides an alternate source of payment to the subcontractors and material suppliers who worked on the job. If the claimant did not have a direct contractual relationship with the prime contractor, the claimant is typically required to give some form of notice to the prime contractor within a specified time after the completion of the work to preserve the right to make a claim against the payment bond

Payment Bond

Purpose and function

Little Miller Acts address two concerns that would otherwise exist in the performance of state government construction projects:

Performance Bonds: The contractor's abandonment or other non-performance of a government job may cause critical delays and added expense in the government procurement process. The bonding process helps weed out irresponsible contractors while the bond itself defrays the government's cost of substitute performance. The subrogration right of the bond surety
Surety
A surety or guarantee, in finance, is a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults...

against the contractor (i.e., the right to sue for indemnification) is a deterrent to non-performance.
Payment Bonds: Subcontractors and material suppliers would otherwise be reluctant to work on such projects (knowing that sovereign immunity
Sovereign immunity
Sovereign immunity, or crown immunity, is a legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution....

prevents the establishment of a mechanic's lien) - decreasing competition and driving up construction costs.

Alabama

Alabama Code, Title 39, Public Works, §39-1-1

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| Performance Bond Required: || All public works projects, 100% of contract price (Sec. 39-1-1(a)); Not required on projects under $50,000.00 (§39-1-1(e))
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| Payment Bond Required: || All public works projects, 50% of contract price (§39-1-1(a)); Not required on projects under $50,000.00 (§39-1-1(e))
|-
| Entitlement to Copy of Bond: || (§39-1-1(c))
|-
| Enforcement: || (§39-1-1(b)).
|-
| Limitations: || One year from date of settlement of contract (§39-1-1(b))
|-
| Notice Requirements: || 45 days notice to surety required prior to suit (§39-1-1(b))
|-
| Other: || Venue allowed in county where the project was located, or where otherwise provided by law (§39-1-1(c)); Attorneys fees and interest allowed if unpaid on 45 day notice (§39-1-1(c)); Contractor must advertise notice of contract settlement (§39-1-1(f)).
|}

Alaska

Alaska Statutes, Title 36, Public Contracts, Chapter 36.25, Contractors' Bonds, Sections 36.25.010 through 36.25.025

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| Performance Bond Required: || All public works contracts over $100,000.00. equal to the amount of the payment bond (§36.25.010(a)(1))
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| Payment Bond Required: || All public works contracts over $100,000.00, equal to 1/2 the amount of the contract if contract amount not more than $1,000,000.00, equal to 40% of the contract if contract amount not more than $5,000,000.00, equal to $2,500,000.00 if contract amount more than $5,000,000.00 (§36.25.010(a)(2))
|-
| Entitlement to Copy of Bond: || [Information Needed]
|-
| Enforcement: || Suit if not paid within 90 days of last work (§36.25.020(a))
|-
| Limitations: || One year from settlement of contract (§36.25.020(c))
|-
| Notice Requirements: || Second tier subcontractors must give notice to contractor within ninety days of last work (§36.25.020(b))
|-
| Other: || Certification of payment by contractor required on projects not requiring a payment bond (§36.25.010(c)); Suit brought in the name of the government for the use of the claimant (§36.25.020(c)); Exemptions for municipalities contracts not exceeding $400,000.00 (§36.25.025);
|}

Arizona

Arizona Revised Statutes, Title 34, Public Buildings and Improvements, Article 2, Contracts, Sections 34–222, 34-223 and 34-224

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| Performance Bond Required: || Full contract amount (§34-222(A)(1)); Bond language specified (§34-222(G))
|-
| Payment Bond Required: || Full contract amount (§34-222(A)(2)); Bond language specified (§34-222(F))
|-
| Entitlement to Copy of Bond: || Upon representation of non-payment or participation in litigation(§34-223(C))
|-
| Enforcement: || Suit if unpaid 90 days after last work (§34-223(A)); Attorney's fees (§34-222(B))
|-
| Limitations: || One year from last work (§34-223(C))
|-
| Notice Requirements: || Second tier subs must give 20-day notice within 90 days of last work (§34-223(A))
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| Other: || Bond surety cannot be individual and must be license by the Dept. of Insurance (§34-222(C) and bond placed on file with contracting agency (§34-222(D))
|}

Arkansas

Arkansas Statutes, Title 22, Public Property, Chapter 9, Public Works, Subchapter 4, Contractors' Bonds,
Sections 22-9-401 through 22-9-405

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| Performance Bond Required: || [Information Needed]
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| Payment Bond Required: || [Information Needed]
|-
| Entitlement to Copy of Bond: || [Information Needed]
|-
| Enforcement: || [Information Needed]
|-
| Limitations: || [Information Needed]
|-
| Notice Requirements: || [Information Needed]
|-
| Other: || [Information Needed]
|}

California

California Statutes, Civil Code, Title 15, Works of Improvement, Chapter 6, Payment Bond for Public Works, Sections 3247 through 3252; California Statutes,Public Contract Code, Part 2, Ch. 1, Art. 7, Contract Requirements, Sections 10220 through 10230

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| Performance Bond Required: || Typically 1/2 contract price (§10222)
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| Payment Bond Required: || All public works contracts more than $25,000.00 (§3247(a)); Full amount of contract (§3248(a)); Not required for architects/engineers (§3247(c))
|-
| Entitlement to Copy of Bond: || Not specified
|-
| Enforcement: || (§3252)
|-
| Limitations: || Six months within the time stop notices must be filed (§3249)
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| Notice Requirements: || (§3252)
|-
| Other: || Attorney's fees (§3248(b)); See, Stop Notice provisions (§3183-3187)
|}

Colorado

Colorado Revised Statutes, Title 24, Government, State, Article 105, Colorado Procurement Code – Construction Contracts, Sections 24-105-201 through 24-105-203; Title 38, Property – Real and Personal, Article 26, Liens – Contractors' Bonds and Lien on Funds, Sections 38-26-101 and 38-26-105 through 38-26-110

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Connecticut

Connecticut General Statutes, Title 49, Mortgages and Liens, Chapter 847, Liens, Sections 49-41 through 49-43

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Delaware

Delaware Code, Title 29, State Government, Budget, Fiscal, Procurement and Contracting Regulations, Chapter 69, State Procurement, Subchapter IV, Public Works Contracting, Section 6962

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District of Columbia

District of Columbia Code, Title 2, Government Administration, Chapter 2, Contracts, Subchapter 1, Bonding Requirement, Sections 2-201.01 through 2-201.03, and 2-201.11

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Florida

Florida Statutes, Title XVIII, Public Lands and Property, Chapter 255, Public Property and Publicly Owned Buildings, Section 255.05

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Georgia

Georgia Code, Title 13, Contracts, Chapter 10, Contracts for Public Works, Sections 13-10-1 – 13-10-2 and 13-10-40 through 13-10-65; Title 36, Local Government Provisions Appliable to Counties, Municipal Corporations, and Other Governmental Entities, Chapter 91, Public Works Bidding Sections 36-91-1 – 36-91-2, 36-91-40 and 36-91-70 through 36-91-95

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Hawaii

Hawaii Revised Statutes, Chapter 103D, Hawaii Public Procurement Code, Part III, Source Selection and Contract Formation, Sections 103D-323 through 103D-325

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Idaho

Idaho Code, Title 54, Professions, Vocations and Businesses, Chapter 19, Public Works Contractors, Sections 54-1925 through 54-1930

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Illinois

Illinois Compiled Statutes, Government, Chapter 30, Finance – Purchases and Contracts, Sections 550/0.01 through 550/3, Public Construction Bond Act

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| Performance Bond Required: || Contract amount more than $50,000.00 on state projects and more than $5,000.00 on state subdivision projects, bond amount set by government (Sec. 550/1)
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| Payment Bond Required: || Contract amount more than $50,000.00 on state projects and more than $5,000.00 on state subdivision projects, bond amount set by government (Sec. 550/1)
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| Entitlement to Copy of Bond: || Not specified
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| Enforcement: || Suit after 120 days from last work or final settlement (Sec. 550/2)
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| Limitations: || Suit filed within 6 months of final acceptance of project (Sec. 550/2)
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| Notice Requirements: || Notice to government within 180 days of last work, plus 10 day notice thereafter to contractor (Sec. 550/2)
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| Other: || Terms of bond presumed by statute (Sec. 550/1); Venue only in county were project to be performed (Sec. 550/2)
|}

Indiana

Indiana Code, Title 4, State Offices and Administration, Article 13.6, State Public Works, Chapter 7, Bonding, Escrow and Retainages, sections 4-13.6-7-5 through 4-13.6-7-12; Title 5, State and Local Administration, Article 16, Public Works, Chapter 5, Withholding and Bond to Secure Payment of Subcontractors, Labor and Materialmen; Chapter 5.5, Retainage, Bonds, and Payment of Contractors and Subcontractors, sections 5-16-5.5-1 through 5-16-5.5-8

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Iowa

Iowa Code, Title XIV, Property, Subtitle 3, Liens, Chapter 573, Labor and Material on Public Improvements, sections 573.1 through 573.227; See also, Iowa Code, Title XV, Judicial Branch and Judicial Procedures,Subtitle 3, Judicial Procedure, Chapter 616, Place of Bringing Actions, section 616.15, Surety Companies

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Kansas

Kansas Statutes, Chapter 16, Contracts and Promises, Article 19, Kansas Fairness in Public Construction Contract Act, sections 16-1901 through 16-1908; Chapter 60, Civil Procedure, Article 11, Liens for Labor and Material, sections 60-1110 & 60-1112;
Chapter 68, Roads and Bridges, Part I, Roads, Article 5, County and Township Roads, sections 68-410, 68-521 and 68-527a

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Kentucky

Kentucky Revised Statutes, Chapter 45A, Kentucky Model Procurement Code, sections 45A.185, 45A.190, 45A.195, 45A.225 through 45A.265, and 45A.430 through 45A.440; See also, Kentucky Revised Statutes, Title XXVII, Chapter 341, Unemployment Compensation, section 341.317

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Louisiana

Louisiana Revised Statutes, Title 38, Public Contracts, Works and Improvements, Chapter 10, Public Contracts, sections 38:2181 – 38:2247; Title 48, Roads, Bridges and Ferries, Chapter 1, Department of Transportation and Development, sections 48:250 – 48:256.12

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Maine

Maine Revised Statutes, Title 14, Court Procedure – Civil, Part 2, Proceedings Before Trial, Chapter 205, Limitation of Actions, Subchapter 3, Miscellaneous Actions, Section 871

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Maryland

Maryland Code, State Finance and Procurement Law, Division II, General Procurement Law, Title 17, Special Provisions – State and Local Subdivisions, Subtitle 1, Security for Construction Contracts, Sections 101 through 111

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| Performance Bond Required: || Contracts exceeding $100,000.00
|-
| Payment Bond Required: || Contracts exceeding $100,000.00, in 1/2 contract amount (§17-103(a)(2)(ii))
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| Entitlement to Copy of Bond: || [Information Needed]
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| Enforcement: || [Information Needed]
|-
| Limitations: || [Information Needed]
|-
| Notice Requirements: || [Information Needed]
|-
| Other: || Bonds required by public entities other than states and state subdivisions (§17-103(b)); Contractor certification of payment required for final payment (§17–106)
|}

Massachusetts

Massachusetts General Laws, Part I, Administration of the Government, Title XXI, Labor and Industries, Chapter 149, Labor and Industries, Section 29

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Michigan

Michigan - MCLA §§ 129.201–129.212 and §§ 570.101–570.101 (2008); Chapter 129, Public Funds, Act 213 of 1963 (as amended), Contractor's Bond for Public Buildings or Works; Chapter 570, Liens, Act 187 of 1905 (as amended), Public Buildings and Public Works; Bond of Contractor

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Minnesota

Minnesota Statutes, Chapter 574, Bonds, Fines, Forfeitures, Sections 26 through 32

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Mississippi

Mississippi Code, Title 31, Public Business, Bonds and Obligations, Chapter 5, Public Works Contracts, Sections 31-5-51 through 31-5-57, Bonds Securing Public Works Contracts; See also, Miss. Code §§ 31-5-25 through 31-5-31 (prompt payment provisions)

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Missouri

Missouri Revised Statutes, Title VIII, Chapter 107, Section 107.170; Title XIV, Chapter 227, Sections 227.100, 227.600 and 227.633; Chapter 229, Sections 229.050, 229.060 and 229.070; Title XXXVI, Chapter 522, Section 522.300

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Montana

Montana Code Annotated, Title 18, Public Contracts, Chapter 2, Construction Contracts, Part 2, Performance, Labor and Materials Bond, Sections 18-2-201through 18-2-208

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Nebraska

Nebraska Revised Statutes, Chapter 52, Liens, Sections 52-118 through 52-118.02

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Nevada

Nevada Revised Statutes, Title 28, Public Works and Planning, Chapter 339, Contractors' Bonds on Public Works, Sections 339.015 through 339.065

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New Hampshire

New Hampshire Revised Statutes, Title XLI, Liens, Chapter 447, Liens for Labor and Materials; Public Works, Sections 447:15 through 447:18

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New Jersey

New Jersey Revised Statutes, Title 2A, Administration of Civil and Criminal Justice, Chapter 44, Sections 2A:44-143 through 2A:44-148

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New Mexico

New Mexico Statutes, Chapter 13, Public Purchases and Property, Article 4, Public Works Contracts, Sections 13-4-18 through 13-4-20

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New York

New York Consolidated Laws, State Finance Law, Article 9, Contracts, §137

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| Performance Bond Required: || [Information Needed]
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| Payment Bond Required: || (§137.1)
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| Entitlement to Copy of Bond: || (§137.2)
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| Enforcement: || Suit after 90 days from last work (§137.3)
|-
| Limitations: || One year from date final payment due contractor (§137.4(b))
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| Notice Requirements: || Second tier subcontractors - 120 days from last work (§137.3)
|-
| Other: || Interest and attorney's fees (§137.4(c)); Includes rental (§137.5(a))
|}

North Carolina

North Carolina General Statutes, Chapter 44A, Statutory Liens and Charges, Article 3, Model Payment and Performance Bond, Sections 44A-25 through 44A-35

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North Dakota

North Dakota Century Code, Title 48, Public Buildings, Chapter 48-01.2, Public Improvement Bids and Contract, Sections 48-01.2-01, 48-01.2-09 through 48-01.2-12 and 48-01.2-23

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Ohio

Ohio Revised Code, Title I, State Government, Chapter 153, Public Improvements, Sections 153.54 through 153.581

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Oklahoma

Oklahoma Statutes, Title 61, Public Buildings and Public Works, Sections 61-1, 61-2, 61-13 and 61-15; Title 61, Public Competitive Bidding Act of 1974 (as amended), Section 61-112

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Oregon

Oregon Revised Statutes, Title 26, Public Facilities, Contracting and Insurance, Chapter 279C, Public Contracting – Public Improvements and Related Contracts, Sections 279C.380 through 279C.390, 279C.515, and 279C.600 through 279C.625

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Pennsylvania

Pennsylvania Statutes, Title 8, Bonds and Recognizances, Chapter 13, Public Works Contractors' Bonds, Sections 191 through 202

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Puerto Rico

Puerto Rico Laws, Title 22, Public Works, Chapter 3, Public Works Contracts, Sections 47 through 58

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Rhode Island

Rhode Island General Laws, Title 37, Public Property and Works, Chapter 37-12, Contractors' Bond, Sections 37-12-1 through 37-12-11

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South Carolina

S.C. Code, Title 11, Public Finance, Chapter 35, South Carolina Consolidated Procurement Code, Article 9, Construction, Architect-Engineer, Construction Management, and Land Surveying Services, Subarticle 3, Construction Services, Section 11-35-3030

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South Dakota

South Dakota Codified Laws, Title 5, Public Property, Purchases and Contracts, Chapter 21, Performance Bonds for Public Improvement Contracts, Sections 5-21-1 through 5-21-8

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Tennessee

Tenn. Code, Title 12, Public Property, Printing and Contracts, Chapter 4, Public Contracts, Part 2 – Surety Bonds, Sections 12-4-201 through 12-4-206

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Texas

Texas Government Code, Title 10, General Government, Subtitle F, State and Local Contracts and Fund Management, Chapter 2253, Sections 2253.001 through 2253.076; Texas Property Code, Title 5, Exempt Property and Liens, Subtitle B, Liens, Chapter 53, Mechanic's, Contractor's or Materialman's Lien, Subchapter J, Lien or Money Due Public Works Contractor, Sections 53.231 through 53.237

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Utah

Utah Code, Title 14, Contrators' Bonds, Chapter 1, Public Contracts, Sections 14-1-18 through 14-1-20; Title 38, Liens, Chapter 1, Mechanics' Liens, Section 38-1-32; Title 63G, General Government, Chapter 6, Utah Procurement Code, Sections 63G-6-504 through 63G-6-507

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Vermont

Vermont Statutes, Title 19, Highways, Chapter 1, State Highway Law, Section 10, Duties; See also, Title 16, Education, Chapter 123, State Aid for Capital Construction Costs, § 3448

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Virginia

Virginia Code, Title 2.2, Administration of Government, Chapter 43, Virginia Public Procurement Act, Sections 2.2-4336 through 2.2-4342

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Washington

Washington Revised Code, Title 39, Public Contracts and Indebtedness, Chapter 39.08, Contractor's Bond, Sections 39.08.010 through 39.08.100

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| Performance Bond Required: || Performance bond required if project exceeds $35,000. RCW 39.08.010 The bond amount must be in the amount of the contract price between public body and prime contractor. RCW 39.08.030
|-
| Payment Bond Required: || Payment bond required if project exceeds $35,000. RCW 39.08.010. The bond amount must be in the amount of the contract price between public body and prime contractor. RCW 39.08.030
|-
| Entitlement to Copy of Bond: || No restrictions
|-
| Enforcement: || Claim on bond must be filed with public body no later than 30 days "from and after the completion of the contract with an acceptance of the work by the" public body. RCW 39.08.030. No time limit to file suit to enforce bond claim, other than 6-year statute of limitations for written contracts.
|-
| Limitations: || [Information Needed]
|-
| Notice Requirements: || No notice required for subcontractors and suppliers who contract directly with prime contractor. Otherwise, notice must be sent certified mail to the prime contractor no later than 10 days after first delivery of materials or equipment. RCW 39.08.065. No notice required for labor portion of claim.
|-
| Other: || Washington law also permits subcontractors, suppliers, and equipment renters to file a claim on the 5% retainage held by the public body. RCW 60.28. Notice can be sent any time, but covers only materials and equipment furnished in the 60 days preceding the date notice is given to the prime contractor certified mail. RCW 60.28.015. Claim on retainge must be filed with the public body "within 45 days of completion of the contract work". RCW 60.28.011. Lawsuit to foreclose retainage claim must be filed within 4 months after claim is filed with public body. RCW 60.28.030.
|}

West Virginia

West Virginia Code, Chapter 5, General Powers and Authority of the Governor, Secretary of State and Attorney General; Board of Public Works; Miscellaneous Agencies, Commissions, Offices, Programs, Etc., Article 22, Government Construction Contracts, Sections 5-22-1 and 5-22-2; Chapter 38, Liens, Article 22, Mechanics' Liens, Section 38-2-39

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Wisconsin

Wisconsin Statutes, Chapter 779, Liens, Subchapter I, Construction Liens, Sections 14 and 15

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Wyoming

Wyoming Statutes, Title 16, City, County, State and Local Powers, Chapter 6, Public Property, Article 1, Public Works and Contracts, Sections 16-6-101 through 16-6-121

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