The Miller Act is a federal law that protects subcontractors and suppliers working on public construction projects throughout the country. New York has its own version of this law that applies to public construction projects for the New York state government. This state law, the New York Little Miller Act, protects subcontractors and suppliers by requiring payment and performance bonds for all projects exceeding $100,000 (with some exceptions).
Before a construction project begins, a payment bond will be taken out. A payment bond is a financial guarantee for subcontractors and suppliers that they will be paid even if the principal contractor defaults and there are payment issues with the project. Performance bonds are taken out simultaneously, ensuring the work is completed to specification. The New York Little Miller law establishes when these bonds must be taken out and how each party can enforce a Little Miller Act claim. We will briefly discuss these, but the attorneys at National Lien & Bond will walk you through the process in detail.
When to Bring a Claim
Subcontractors and direct suppliers can file a claim against the bond when it has been over 90 days since you last provided labor or materials for a project and have not yet been paid. For sub-subcontractors and suppliers of subcontractors, the time is a bit longer, at 120 days. Claims must be filed within one year of the project being completed, so don’t wait if you believe you are entitled to a claim. A contractor may promise payment, and payment by giving a little extra time is okay, but make sure you aren’t running up against that 1-year clock.
Giving Notice
To file a claim, parties must provide notice to the contractor. Two things must be included in the notice:
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- The amount being claimed and
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- The name of the party to whom the work was completed on behalf of or materials provided.
Notice must be given personally or by certified mail. This is an important step. It may seem like a technicality that doesn’t matter much, but failing to provide notice using the correct legal method can cause problems later.
Filing the Little Miller Act Claim
If you still haven’t received payment, you should file a claim with the surety company that issued the payment bond. The details of how to file the claim will be included in the bond information paperwork, so it’s crucial to make it your company’s standard practice to obtain this paperwork at the start of any contract. Your National Lien & Bond attorney can assist you in this process to ensure you correctly file the claim and can receive payment promptly.
File a Lawsuit to Enforce the Claim
If filing a payment bond claim is not going smoothly, a lawsuit may be your best recourse to obtain payment for the work or supplies you provided. New York’s Little Miller Act explains all the processes and procedures for a lawsuit. Still, you should never pursue legal action alone—to bring a successful lawsuit; you should always have counsel experienced in Little Miller laws.
If you would like assistance filing a New York Little Miller Act Claim, National Lien & Bond can help. Our team of skilled attorneys is well-versed in all aspects of the law and pursuing compensation in and out of court. National Lien & Bond attorneys have represented subcontractors and suppliers on over 25,000 projects nationwide, recovering over $9 billion in claims for their clients. To resolve your payment dispute, contact National Lien & Bond today.