The Miller Act Explained: Payment Rights on Federal Construction Projects

On a private construction project in Tennessee, an unpaid subcontractor or supplier can file a mechanic's lien against the property itself. On a federal project, that remedy does not exist — no one can place a lien on property owned by the United States. Congress closed that gap more than ninety years ago with the Miller Act, a federal law that requires prime contractors on most federal construction projects to post a payment bond. For the companies furnishing the labor and materials, that bond is often the only reliable path to getting paid.

The Miller Act (40 U.S.C. §§ 3131–3134) applies to federal contracts for the construction, alteration, or repair of public buildings and public works above the statutory threshold, currently $150,000. Before work begins, the prime contractor must furnish two bonds: a performance bond that protects the government, and a payment bond that protects subcontractors and suppliers.

Coverage reaches further than many contractors expect. First-tier subcontractors and suppliers — those with a direct contract with the prime — are protected. So are second-tier participants: sub-subcontractors and suppliers to a first-tier subcontractor. Companies further down the chain are generally not covered, which is why knowing your tier on a federal job matters from day one.

The deadlines are unforgiving, and they decide real claims. A claimant who did not contract directly with the prime contractor must give written notice of its claim within 90 days of the last date it furnished labor or materials. Every claimant, regardless of tier, must file suit no later than one year after that same last-furnishing date. Miss either window and the bond claim is gone, no matter how strong the underlying invoice.

Miller Act suits also look unusual on paper. They are filed in federal district court in the name of the United States for the use of the actual claimant — which is why captions in these cases read 'United States of America v. [prime contractor and surety].' The real parties in interest are the unpaid subcontractor or supplier on one side and the prime contractor and its bonding company on the other. Members of our team have litigated these claims in federal court: as noted in her biography, Jeanne Harrison served as counsel for 4K Global-ACC JV, LLC in a Miller Act action in the U.S. District Court for the Northern District of Georgia.

If you are working on a federal project, a few habits protect your payment rights: confirm before mobilizing whether the project is bonded and request a copy of the payment bond; track your last-furnishing date from the first day on site, because both Miller Act deadlines run from it; keep delivery tickets, invoices, and correspondence organized as the job progresses; and remember that state and local public projects follow different rules entirely — in Tennessee, the Prompt Pay Act and related statutes supply those remedies.

Whether you need to make a bond claim or respond to one, early advice changes the outcome. Our construction litigation team handles payment disputes on private, public, and federal projects throughout Tennessee and beyond — and the consultation is free.

This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Representative experience does not guarantee similar outcomes.