EXCERPT FROM MILLER ACT1 [40 U.S.C. § 270] § 270a. Bonds of contractors for public buildings or works; waiver of bonds covering contract performed in foreign country (a) Before any contract, exceeding $2,000 in amount, for the construction, alteration, or repair of any public building or public work of the United States is awarded to any person, such person shall furnish to the United States the following bonds, which shall become binding upon the award of the contract to such person, who is hereinafter designated as "contractor": (1) A performance bond with a surety or sureties satisfactory to the officer awarding such contract, and in such amount as he shall deem adequate, for the protection of the United States. (2) A payment bond with a surety or sureties satisfactory to such officer for the protection of all persons supplying labor and material in the prosecution of the work provided for in said contract for the use of each such person. Whenever the total amount payable by the terms of the contract shall be not more than $1,000,000 the said payment bond shall be in a sum of one-half the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $1,000,000 and not more than $5,000,000, the said payment bond shall be in a sum of 40 per centum of the total amount payable by the terms of the contract. Whenever the total amount payable by the terms of the contract shall be more than $5,000,000 the said payment bond shall be in the sum of $2,500,000. (b) The contracting officer in respect of any contract is authorized to waive the requirement of a performance bond and payment bond for so much of the work under such contract as is to be performed in a foreign country if he finds that it is impracticable for the contractor to furnish such bonds. (c) Nothing in this section shall be construed to limit the authority of any contracting officer to require a performance bond or other security in addition to those, or in cases other than the cases specified in subsection (a) of this section. (d) Every performance bond required under this section shall specifically provide coverage for taxes imposed by the United States which are collected, deducted, or withheld from wages paid by the contractor in carrying out the contract with respect to which such bond is furnished. However, the United States shall give the surety or sureties on such bond written notice, with respect to any such unpaid taxes attributable to any period, within ninety days after the date when such contractor files a return for such period, except that no such notice shall be given more than one hundred and eighty days from the date when a return for the period was required to be filed under the Internal Revenue Code of 1954 [26 USCS § 1 et seq.]. No suit on such bond for such taxes shall be commenced by the United 1 Miller Act of Aug. 24, 1935, 40 U.S.C. § 270 et seq. (1935), as amended by Act of Aug. 4, 1959, P.L. 86-135, 73 Stat. 279 (1959), and Act of Nov. 2, 1966, P.L. 89-719, 80 Stat. 1139 (1966). Added by Act of Nov. 2, 1966, P.L. 89-719, 80 Stat. 1139 (1966). States unless notice is given as provided in the preceding sentence, and no such suit shall be commenced after the expiration of one year after the day on which such notice is given. § 270b. Same; rights of persons furnishing labor or material (a) Every person who has furnished labor or material in the prosecution of the work provided for in such contract, in respect of which a payment bond is furnished under this Act [40 USCS §§ 270a et seq.] and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action to final execution and judgment for the sum or sums justly due him: Provided. however, That any person having direct contractual relationship with a subcontractor but no contractual relationship express or implied with the contractor furnishing said payment bond shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be served by mailing the same by registered mail, postage prepaid, in an envelope addressed to the contractor at any place he maintains an office or conducts his business. or his residence, or in any manner in which the United States marshal of the district in which the public improvement is situated is authorized by law to serve summons. (b) Every suit instituted under this section shall be brought in the name of the United States for the use of the person suing, in the United States District Court for any district in which the contract was to be performed and executed and not elsewhere, irrespective of the amount in controversy in such suit, but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by him. The United States shall not be liable for the payment of any costs or expenses of any such suit. § 270c. Same; right of person furnishing labor or material to copy of bond The Comptroller General is authorized and directed to furnish, to any person making application therefor who submits an affidavit that he has supplied labor or materials for such work and payment therefor has not been made or that he is being sued on any such bond. & certified copy of such bond and the contract for which it was given. which copy shall be prima facie evidence of the contents, execution. 1 Amended by Act of Aug. 4, 1959, Public Law 86-135, § 1, 73 Stat. 279 (1959). This Ad substituted "day on which the last of the labor was performed or material was supplied by him" for "date of final settlement of such contract." and delivery of the original. Applicants shall pay for such certified copies such fees as the Comptroller General fixes to cover the cost of preparation thereof.2 Approved August 24, 1935. Amended by Act of Aug. 4, 1959, Public Law 86-135. § 2, 73 Stat. 279 (1959). The Act deleted", and, in case final settlement of such contract has been made, a certified statement of the date of such settlement, which shall be conclusive as to such date upon the parties" following "delivery of the original"; and deleted "and certified statements" following "such certified copies". GLOSSARY (Special Terms and References Used in Connection with Housing and Community Development Activities Under Laws in This Compilation) ACRONYMS AND ABBREVIATED CITATIONS ACC-Annual Contributions Contracts-public housing. FmHA-Farmers Home Administration. FHLBB-Federal Home Loan Bank Board. FHLMC-Federal Home Loan Mortgage Corporation (Freddie Mac). FNMA-Federal National Mortgage Association (Fannie Mae). LHA-Local Housing Authority. LPA-Local Public Agency. NDP-Neighborhood Development Program (urban renewal). NHP-National Housing Partnership. PMI-Private Mortgage Insurance-insurance of mortgages by pri vate insurers. PUD-Planned Unit Development. REIT-Real Estate Investment Trust. VA-Veterans' Administration. Title I-Block grant program for community development (Hous ing and Community Development Act of 1974.) Title I-Urban renewal program-being terminated by Housing and Community Development Act of 1974 (Housing Act of 1949). Title I-Loan insurance programs, HUD-primarily property improvement loans (National Housing Act). Sec. 8-"Assistance payments" to owners or prospective owners of rental housing to cover part of rent of low-income tenants (Housing and Community Development Act of 1974). Sec. 23-Low-rent housing provided by public housing agencies in housing leased from private owners (U.S. Housing Act of 1937 prior to amendment by the Housing and Community Development Act of 1974). Sec. 202-Loans by HUD for rental housing for the elderly and handicapped (Housing Act of 1959). Sec. 203-Regular mortgage insurance for 1- to 4-family homes, HUD, continuing the original FHA program for such housing. Sec. 207-Regular mortgage insurance for multifamily housing, HUD, continuing traditional FHA program for such housing. |