Bond Claim — Complete Guide for Contractors on Public Projects 2026
On public construction projects — federal, state, and local government projects — mechanics liens cannot be filed against government-owned property. Instead, unpaid contractors and suppliers must file a payment bond claim against the payment bond posted by the general contractor. This guide covers bond claims under the Miller Act, state Little Miller Acts, and how to protect your payment rights on public projects.
What Is a Bond Claim?
A bond claim (or payment bond claim) is a formal demand for payment against a surety bond posted on a construction project. On public projects, property owners (government entities) are immune from mechanics liens — so the legislature created payment bond requirements to protect subcontractors and suppliers. The general contractor is required to post a payment bond, and unpaid lower-tier parties can make claims against that bond.
The Miller Act — Federal Projects
The Miller Act (40 U.S.C. § 3131-3134) requires that general contractors on federal construction contracts over $150,000 post both a performance bond and a payment bond. First-tier subcontractors and material suppliers can sue directly on the bond within 90 days of final furnishing. Second-tier parties must give written notice within 90 days of final furnishing.
State Little Miller Acts
Every state has its own version of the Miller Act for state and local government projects. These are commonly called Little Miller Acts. The bond thresholds, deadlines, and notice requirements vary by state. Most states require payment bonds on projects over $25,000 to $100,000. Always check your specific state's requirements.
How to File a Bond Claim
The bond claim process: (1) Identify whether a payment bond was posted on the project; (2) Obtain the bond information (surety company name, bond number, penal sum); (3) Send written notice to the surety and principal within the required time; (4) File the bond claim with the surety before the claim deadline; (5) If unpaid, file a lawsuit on the bond within the statute of limitations.
Bond Claims vs. Mechanics Liens
On private projects, mechanics liens are the primary payment protection tool. On public projects, bond claims replace mechanics liens. The deadlines, notice requirements, and enforcement procedures are different. Some states allow both bond claims and stop payment notices on certain project types.
Frequently Asked Questions
Can I file a mechanics lien on a public project?
No. Mechanics liens cannot be filed against government-owned property in the United States. The government has sovereign immunity from liens. On public projects, your protection comes from the payment bond posted by the general contractor under the Miller Act or state Little Miller Acts.
What is the Miller Act deadline for bond claims?
Under the Miller Act, first-tier subcontractors must sue the surety within 1 year of last furnishing. Second-tier parties (sub-subs and suppliers to subs) must give written notice to the prime contractor within 90 days of last furnishing before filing suit.
What if the general contractor did not post a payment bond?
If a payment bond was required by law and was not posted, the project owner may be liable for unpaid amounts. Consult a construction attorney if you believe a required bond was not obtained.