Virginia has its own version of the federal “Miller Act” that is part of its Public Procurement Law. Sometimes referred to as the state’s “Little Miller Act,” Virginia’s law applies to public construction contracts that do not relate to transportation that exceed $500,000 and to transportation-related project contracts that exceed $350,000. It requires general contractors to furnish payment bonds intended to protect “claimants who have and fulfill contracts to supply labor and materials” to the prime contractor or any subcontractors in connection with the project. Virginia also requires prime contractors to furnish performance bonds to ensure that the work that’s been contracted for is completed.
If you are a subcontractor or materials supplier to a government contract in Virginia that exceeds the minimums set by Virginia’s Little Miller Act, you need to pay close attention to the requirements that apply if you need to collect on a payment bond. This summarizes the main requirements you need to be aware of.
No Advance Notice Requirements in Virginia
Unlike many other states, Virginia does not require sub-subcontractors or suppliers to subcontractors to notify the general contractor that they are involved in a project within any particular period after they have begun to be eligible to collect on a payment bond for unpaid contract amounts.
File a Notice Against a Payment Bond
Sub-subcontractors and suppliers that do not have a direct contractual relationship with the general contractor must first notify the general contractor within 90 days of when they “performed the last of the labor or furnished the last of the materials” for which they are claiming payment before they can file an action on the payment bond. That notice must include the amount being claimed and who the work was performed for (or materials supplied to).
File a Lawsuit to Collect on a Payment Bond
A subcontractor with a direct relationship with the general contractor (including a materials supplier) may file an action on the payment bond if the subcontractor has not been paid within 90 days of when it provided the last of the labor or materials for which it seeks payment. Subcontractors and materials suppliers that do not have a direct relationship with the contractor must first serve the contractor with the notice described above before they can file a lawsuit to collect on the payment bond. Any action on a payment bond must be brought within one year of the day the subcontractor or materials supplier last performed labor or furnished materials for which they were not paid.
National Lien & Bond Can Help
National Lien & Bond can help you ensure you follow Virginia’s Little Miller Act requirements if you haven’t been paid for work you’ve performed or materials you’ve supplied for a public project. We can help with payment bond lawsuits in Virginia and other states. At National Lien & Bond, our experienced construction law attorneys have helped our clients recover more than $9 billion in claims for projects all across the country. Our average recovery for our clients exceeds $360,000.
Contact National Lien & Bond today if you need help resolving a payment dispute related to a public project in Virginia or elsewhere in the U.S. Call us at (800) 432-7799 or use our contact form to schedule a free consultation.