Timing Is Everything: Miller Act Notice Defect Saves Surety

The Miller Act protects subcontractors from nonpayment on federal projects by requiring prime contractors to issue payment bonds. To obtain relief under the Miller Act, a subcontractor must (1) give the prime contractor written notice of its claim within 90 days of the date it last performed work on a federal project and (2) file suit against the bond for any outstanding nonpayment within one year of the date work was last performed. A subcontractor’s non-compliance with these timing requirements, when applied strictly, can allow a surety to escape liability. In A&C Constr. & Installation, Co. WLL v. Zurich American Insurance Company (decided June 30, 2020), the surety, Zurich, was able to do just that. There, the U.S. Court of Appeals for the Seventh Circuit upheld a summary judgment ruling dismissing a sub-subcontractor’s claim for not complying with the Miller Act notice and suit timing requirements.

The complete article, "Timing Is Everything: Miller Act Notice Defect Saves Surety," was published as a blog by the NASBP July 21, 2020 and can be found at their website here.