What is the minimum contract amount required for performance and payment bonds under the Miller Act?

The minimum contract amount required for performance and payment bonds under the Miller Act is indeed $100,000. The Miller Act, enacted in 1935, mandates that contractors on federal construction projects valued at $100,000 or more must obtain these bonds to ensure that they fulfill their contractual obligations and that subcontractors and suppliers will be paid.

By requiring performance and payment bonds for contracts of this amount, the Act seeks to offer financial protection to all parties involved in the construction project. It prevents issues related to non-payment, providing a mechanism for subcontractors and suppliers to recover damages if the prime contractor defaults on their contractual obligations.

Understanding the Miller Act's stipulations is crucial for contractors, as compliance not only protects the financial interests of those involved in a project but also ensures adherence to federal law. This is essential for contractors looking to participate in federal projects, as missing the bond requirement can lead to disqualification from bidding on such contracts.