Home>Levelset Community>Legal Help>I have a question about a public project we are doing in Pennsylvania. We are contracting directly with the University (17197 Penn State University) so does that mean we don’t have any rights under the Little Miller Act?

I have a question about a public project we are doing in Pennsylvania. We are contracting directly with the University (17197 Penn State University) so does that mean we don’t have any rights under the Little Miller Act?

We are contracting directly with the University (17197 Penn State University) so does that mean we don’t have any rights under the Little Miller Act?

4 replies

Sep 20, 2017

In Pennsylvania, a bond is required on any job involving a public building or other public work or public improvement, when the work is to be more than $5000. In those cases, the prime contractor to whom the contract will be awarded must provide certain bonds. One of these bonds is a payment bond - of 100% of the contract amount. According to Pennsylvania statutes, "[s]uch bond shall be solely for the protection of claimants supplying labor or materials to the prime contractor to whom the contract was awarded, or to any of his subcontractors . . ."

Accordingly, direct contractors are not protected by the bond requirements set forth by the Pennsylvania Little Miller Act. Remedy for nonpayment directly by the public entity is generally a lawsuit (or arbitration if the contract requires, etc.)

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Helpful

Jul 21, 2023

I understand that you believe since we're contracting directly with the University (17197 Penn State University), we might not have any rights under the Little Miller Act. However, that's not entirely accurate.

The Little Miller Act is a statute that applies to public construction projects and ensures that subcontractors and suppliers have a right to make claims against the payment bond provided by the general contractor. While we are contracting directly with the University, the Act may still be applicable in certain situations.

If our contract with the University requires the use of subcontractors or suppliers, the Act could come into play. In such cases, those subcontractors or suppliers would have rights under the Little Miller Act to seek payment from the payment bond if they encounter payment issues.

It's essential to thoroughly review the terms and conditions of our contract with the University to understand the specific provisions and whether the Act applies or not. Additionally, consulting with a legal expert familiar with construction law would be prudent to ensure we're fully aware of our rights and obligations in this arrangement.

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