North Carolina has a “Little Miller Act” version of the federal Miller Act. It requires public construction projects to have both payment and performance bonds in place when the total amount of a construction project exceeds $300,000.
If you’re a subcontractor or material supplier working on a Georgia public construction project, you definitely should understand what the basic requirements are so that you make sure you are able to collect against the payment bond in the event your contractor doesn’t pay you for the work you do or the materials you supply. What follows is a summary of those requirements.
Understand Preliminary Notice Requirements
Preliminary notice requirements apply in North Carolina. If not done, the subcontractor or material supplier risks being unable to collect from the payment bond. The subcontractor or materials supplier must provide the contractor with a notice that follows specific statutory requirements. This must be given to the contractor within 75 days of when the subcontractor begins work (or supplies materials) to the project – unless the contract amount is $20,000 or less.
Obtain Bond Information
North Carolina requires the contractor to provide a certified copy of the payment bond and the construction contract covered by the bond within ten days of when a request is made for that information. Note that the contractor is entitled to charge a reasonable amount for furnishing this.
File a Claim Against the Payment Bond
North Carolina’s Little Miller Act imposes a 120-day time limit for subcontractors and material suppliers with claims against the contractor for nonpayment to file their claim against the payment bond. The 120-day period begins the day after the last day the subcontractor or materials supplier performs work or delivers materials for the project. The claim must be delivered to the general contractor who furnished the bond. However, other parties involved in the project (such as the public entity responsible for the project) can also be notified. The bond claim must note the amount of the claim and the name of the party for which the work was performed (or the materials were delivered).
File a Lawsuit to Enforce the Claim
If the claim against the payment bond does not result in the overdue payment being received, a lawsuit can be filed to collect the payment bond. Any such lawsuit must be filed no later than one year from the day the last of the labor or materials was provided by the subcontractor or materials supplier making the claim.
Let National Lien & Bond Help
To protect your company’s ability to collect on a payment bond, you must pay close attention to the deadlines and notice requirements that North Carolina’s Little Miller Act imposes. If you need help with this or filing your Miller Act Claim or a lawsuit to collect on a payment bond, the experienced construction law attorneys at National Lien & Bond can help. We’ve helped clients across the US, including in North Carolina, collect more than $9 billion in claims on over 25,000 projects.
Contact National Lien & Bond today for help resolving your payment dispute with your public project in North Carolina or elsewhere in the US. Call (800) 432-7799 or use our contact form to set up a free consultation.