The Little Miller Act protects Florida construction subcontractors and suppliers from public principal default. The federal law requires the use of payment bonds and performance bonds as financial guarantees.
Payment bonds provide payment to all entities involved with the project regardless of default. Performance bonds ensure construction contractors fulfill contract agreements. Florida’s enforcement of the Little Miller Act has strict procedures and requirements for claims, and below is an overview of the process.
Identify Preliminary Notice Requirements
Subcontractors or suppliers must notify the general construction contractor, the public entity, and the surety company within 20 days of beginning the project or supplying materials. This notice establishes a right to payment protection under the Florida Little Miller Act claim, including the intent to file a claim.
Obtain Bond Information
General contractors and public entities must file a payment bond. Subcontractors and suppliers should obtain copies of the bond information, which includes three key pieces: bond terms, amount covered, and name of the issuing surety.
Serve a Stop Notice
Under the Florida Little Miller Act, subcontractors or suppliers can serve a stop notice to public entities as soon as payment problems arise. The provision prevents funds from being disbursed until the conflict is resolved.
File a Claim Against the Payment Bond
Federal law allows construction subcontractors or construction suppliers to submit a claim against the payment bond within 90 days after the last work was performed or materials delivered. The claim must be filed with the surety company with a copy of the construction contract, including the materials or services rendered and the amount owed.
File a Lawsuit to Enforce the Claim
Surety companies may deny claims, but contractors can pursue legal action. Lawsuits must be filed within six months after project completion and accepted by the public entity.
Navigating the requirements of a lawsuit can be overwhelming, particularly when matched with short timelines. To exercise your full rights under the Florida Little Miller Act, contact the attorneys at National Lien & Bond. We’ve represented clients throughout Florida and nationwide and have obtained over $9 billion across 30,000 liens for thousands of clients. Take advantage of our unparalleled national network and contact us today to resolve your construction contract disputes.