What does the Miller Act require for federal projects over $100,000?

The Miller Act mandates that for federal construction projects exceeding $100,000, contractors are required to furnish both performance bonds and payment bonds. The performance bond serves as a guarantee that the contractor will execute the project according to the stipulated terms and conditions, protecting the government and taxpayers against potential project failures or defaults. The payment bond ensures that subcontractors and suppliers are compensated for their labor and materials, safeguarding their financial interests and fostering trust in public contracting.

This requirement is rooted in the act’s objective to promote financial security and accountability in federal construction projects, ensuring that necessary funding is available for project completion and that all parties involved in the construction process are adequately compensated. The other options, such as submission of a business plan, conducting environmental impact assessments, or ensuring compliance with union regulations, do not align with the specific financial assurances set forth in the Miller Act. These aspects may be relevant to various construction projects but are not requirements under the Miller Act itself.