The Miller Act and Suppliers
If a material supplier is not compensated for goods delivered properly to a construction site, there are remedies available.
Before suing on the bond, it is important to review all terms and conditions.
Certified Copy of Payment Bond
If a supplier of materials on a federal project has not been paid they can request a certified copy of a payment bond. The request must be accompanied with an affidavit which swears a) payment is due and unfulfilled or b) that the person is being sued on the bond.
Suit on Bond:
If a supplier has not been paid within 90 days of furnishing conforming and required materials, the supplier may bring a civil action on the payment bond covering the unpaid portion of his/her contract. If materials were actually used on another job, there are rights under the Miller Act but limited exceptions might apply.
A second-tier claimant has similar bond rights and must follow similar procedures.
In the United States District Court in which the contract was to be performed or executed.
One Year Statute of Limitations
If a civil action under the Miller Act is to be filed, it must be presented no later than one year after the labor or material was performed or furnished.
A waiver clause is strongly disfavored as some contractors have attempted to include waiver of Miller Act rights by suppliers. In some cases after contracting to supply materials, a waiver can be accomplished when accompanied by consideration.