Using the Miller and Little Miller Acts to Reduce Credit Risk  June 18, 2009 NACM – Presented by Sussman Shank, LLP SUSSMA...
Washington Little Miller Act Highlights <ul><li>Pre-Claim Notice </li></ul><ul><ul><li>Every Person Or Entity Furnishing S...
Washington Little Miller Act Highlights <ul><li>Bond Claim </li></ul><ul><ul><li>Within 30 Days Of Acceptance By Affirmati...
Washington Little Miller Act Highlights <ul><li>Bond Claim (Cont.) </li></ul><ul><ul><li>Notice Must Be Signed By Claimant...
Oregon’s Little Miller Act ©   SUSSMAN SHANK  LLP  |  www.sussmanshank.com
Oregon’s Little Miller Act <ul><li>Exempt Projects </li></ul><ul><ul><li>Emergency Situations </li></ul></ul><ul><ul><ul><...
Oregon’s Little Miller Act <ul><li>ORS 279 c.600 Et. Seq. </li></ul><ul><li>Applies To </li></ul><ul><ul><li>All Non-Feder...
Oregon’s Little Miller Act <ul><li>Requires Prime Contractor To Post </li></ul><ul><ul><li>Performance Bond </li></ul></ul...
Oregon’s Little Miller Act <ul><li>Exempt Projects (Cont.) </li></ul><ul><ul><li>Contracts For Certain Products, Services ...
Oregon’s Little Miller Act <ul><li>Deadline To File Lawsuit </li></ul><ul><ul><li>No Later Than 2 Years After Last Provide...
Oregon’s Little Miller Act <ul><li>Notice of Little Miller Act Bond Claim (Cont.) </li></ul><ul><ul><li>Contents  </li></u...
Federal Miller Act SUSSMAN SHANK  LLP  | (503) 227-1111 | www.sussmanshank.com | © 2009
Federal Miller Act <ul><li>40 USC §270 </li></ul><ul><li>Cannot Lien Property Owned By The Federal Government </li></ul><u...
Federal Miller Act <ul><li>Who Is Not Entitled To File A Claim </li></ul><ul><ul><li>Supplier To A First Tier Supplier </l...
Federal Miller Act <ul><li>The Payment Bond Protects A Limited Number Of Persons Who Have  </li></ul><ul><ul><li>A Written...
Federal Miller Act <ul><li>Notice Of A Claim </li></ul><ul><ul><li>First Tier Subcontractor Or Supplier Is Not Required To...
Federal Miller Act Hierarchy ©   SUSSMAN SHANK  LLP  |  www.sussmanshank.com
Federal Miller Act <ul><li>Where File Lawsuit </li></ul><ul><ul><li>Federal District Court Where The Contract Was To Be Pe...
Federal Miller Act <ul><li>Who </li></ul><ul><ul><li>To The Prime Contractor </li></ul></ul><ul><li>How  </li></ul><ul><ul...
Federal Miller Act SUSSMAN SHANK  LLP  | (503) 227-1111 | www.sussmanshank.com | © 2009
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Using the Miller Acts

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Information on how to use the Miller and Little Miller acts to reduce credit risk.

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Using the Miller Acts

  1. 1. Using the Miller and Little Miller Acts to Reduce Credit Risk June 18, 2009 NACM – Presented by Sussman Shank, LLP SUSSMAN SHANK LLP | (503) 227-1111 | www.sussmanshank.com | © 2009
  2. 2. Washington Little Miller Act Highlights <ul><li>Pre-Claim Notice </li></ul><ul><ul><li>Every Person Or Entity Furnishing Supplies Or Materials Must Provide Written Notice To The General Contractor Not Later Than 10 Days After The Date Of First Delivery Stating: </li></ul></ul><ul><ul><ul><li>Name Of Person/Entity Providing Supplies Or Materials </li></ul></ul></ul><ul><ul><ul><li>Name Of Person/Entity To Whom Such Supplies Or Materials Were/Will Be Provided </li></ul></ul></ul><ul><ul><ul><li>That The General Contractor And His Bond Will Be Held For Payment Of The Same </li></ul></ul></ul><ul><ul><ul><li>Persons Providing Only Labor Need Not Provide This Notice </li></ul></ul></ul><ul><ul><ul><li>If Required And Not Done, No Bond Claim! </li></ul></ul></ul><ul><ul><ul><li>Send By Certified Mail Or Registered Mail </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  3. 3. Washington Little Miller Act Highlights <ul><li>Bond Claim </li></ul><ul><ul><li>Within 30 Days Of Acceptance By Affirmative Action Of The Public Body, Claimant Shall File Its Claim With The Public Body Its Claim </li></ul></ul><ul><ul><li>&quot;Acceptance&quot; Formal Act Defined By Statute </li></ul></ul><ul><ul><li>Caution: Acceptance Can Be Partial (i.e. Phase 1) </li></ul></ul><ul><ul><li>Substance Of Claim Is Statutory, But Highlights Are: </li></ul></ul><ul><ul><ul><li>Name Of Public Body That Let The Contract </li></ul></ul></ul><ul><ul><ul><li>Name Of Claimant </li></ul></ul></ul><ul><ul><ul><li>Amount Of Claim (Itemize) </li></ul></ul></ul><ul><ul><ul><li>Surety Name And Bond Number </li></ul></ul></ul><ul><ul><ul><li>Name Of Contractor Who Obtained Bond </li></ul></ul></ul><ul><ul><ul><li>Brief Description Of Work Performed </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  4. 4. Washington Little Miller Act Highlights <ul><li>Bond Claim (Cont.) </li></ul><ul><ul><li>Notice Must Be Signed By Claimant </li></ul></ul><ul><ul><li>Attorneys Fees/Costs </li></ul></ul><ul><ul><ul><li>If Claimant Waits 31 Days From The Filing Of The Claim Before Filing Suit And Prevails In The Lawsuit, It Is Entitled To Reasonable Attorney Fees (Reciprocal) </li></ul></ul></ul><ul><ul><li>Other Conditions In Bond - Look At Bond To Confirm </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  5. 5. Oregon’s Little Miller Act © SUSSMAN SHANK LLP | www.sussmanshank.com
  6. 6. Oregon’s Little Miller Act <ul><li>Exempt Projects </li></ul><ul><ul><li>Emergency Situations </li></ul></ul><ul><ul><ul><li>Contract < $50,000 </li></ul></ul></ul><ul><ul><ul><li>Not Reasonably Foreseeable </li></ul></ul></ul><ul><ul><ul><li>Creates Substantial Risk </li></ul></ul></ul><ul><ul><ul><li>Prompt Contract To Remedy </li></ul></ul></ul><ul><ul><li>Agency Cost Estimate Exceeded </li></ul></ul><ul><ul><ul><li>All Reasonable Bidders </li></ul></ul></ul><ul><ul><li>Contracts Between Certain Agencies </li></ul></ul><ul><ul><ul><li>Oregon - Oregon </li></ul></ul></ul><ul><ul><ul><li>Oregon – Federal </li></ul></ul></ul><ul><ul><ul><li>Nonprofits - Disabled Employment </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  7. 7. Oregon’s Little Miller Act <ul><li>ORS 279 c.600 Et. Seq. </li></ul><ul><li>Applies To </li></ul><ul><ul><li>All Non-Federal, Public Improvement Construction Projects In Oregon </li></ul></ul><ul><ul><ul><li>State Agencies - ODOT </li></ul></ul></ul><ul><ul><ul><li>School Districts </li></ul></ul></ul><ul><ul><ul><li>Cities </li></ul></ul></ul><ul><ul><ul><li>Mixed Funding </li></ul></ul></ul><ul><ul><ul><ul><li>Wind Farms </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Low Income Housing </li></ul></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  8. 8. Oregon’s Little Miller Act <ul><li>Requires Prime Contractor To Post </li></ul><ul><ul><li>Performance Bond </li></ul></ul><ul><ul><li>Payment Bond </li></ul></ul><ul><ul><ul><li>Equal To The Amount Of The Prime Contract </li></ul></ul></ul><ul><ul><ul><li>Protects Most Persons Claiming To Have Supplied Labor, Materials, Or Equipment </li></ul></ul></ul><ul><li>Notice of Claim </li></ul><ul><ul><li>To </li></ul></ul><ul><ul><ul><li>The Prime Contractor </li></ul></ul></ul><ul><ul><ul><li>Public Body Or Agency </li></ul></ul></ul><ul><ul><ul><ul><li>Surety </li></ul></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  9. 9. Oregon’s Little Miller Act <ul><li>Exempt Projects (Cont.) </li></ul><ul><ul><li>Contracts For Certain Products, Services or Suppliers </li></ul></ul><ul><ul><ul><li>Project < $50,000 </li></ul></ul></ul><ul><ul><ul><li>VA </li></ul></ul></ul><ul><ul><ul><li>Recycled Materials </li></ul></ul></ul><ul><ul><li>Certain Review Boards </li></ul></ul><ul><ul><ul><li>Classes Of Contracts </li></ul></ul></ul><ul><ul><ul><li>Procedures To Establish </li></ul></ul></ul><ul><ul><ul><li>Notice And Hearing </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  10. 10. Oregon’s Little Miller Act <ul><li>Deadline To File Lawsuit </li></ul><ul><ul><li>No Later Than 2 Years After Last Provided Labor Or Materials. </li></ul></ul><ul><ul><ul><li>Not 2 Years After Notice Of Claim </li></ul></ul></ul><ul><ul><ul><li>Project Location Or Federal Court </li></ul></ul></ul><ul><ul><li>Attorney Fees May Be Recoverable </li></ul></ul><ul><ul><ul><li>Surety - 6 Months </li></ul></ul></ul><ul><li>Public Body And The Officer Authorizing The Contract May Be Personally Liable </li></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  11. 11. Oregon’s Little Miller Act <ul><li>Notice of Little Miller Act Bond Claim (Cont.) </li></ul><ul><ul><li>Contents </li></ul></ul><ul><ul><ul><li>ORS 279c.605 </li></ul></ul></ul><ul><ul><ul><li>OAR 137-040-0045 </li></ul></ul></ul><ul><ul><ul><ul><li>Your Address </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Title Of Progress </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Name Of The Bonding Company </li></ul></ul></ul></ul><ul><ul><li>When </li></ul></ul><ul><ul><ul><li>No Later Than 120 Days After The Last Day Of Labor Or Furnished Materials </li></ul></ul></ul><ul><ul><ul><li>Work May Extend The 120 Day Notice Period </li></ul></ul></ul><ul><ul><ul><ul><li>Corrective Or Replacement </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Minor Or Trifling </li></ul></ul></ul></ul><ul><ul><li>Sent By Registered Or Certified Mail Or Hand Delivered </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  12. 12. Federal Miller Act SUSSMAN SHANK LLP | (503) 227-1111 | www.sussmanshank.com | © 2009
  13. 13. Federal Miller Act <ul><li>40 USC §270 </li></ul><ul><li>Cannot Lien Property Owned By The Federal Government </li></ul><ul><li>Applies To Contracts Over $100,000 </li></ul><ul><li>A Prime Contractor Who Has </li></ul><ul><ul><li>Contract To Perform Construction Or Alteration Or Repair, On A Federal Project Or -Property </li></ul></ul><ul><ul><li>Must Post A Performance Bond </li></ul></ul><ul><ul><li>Must Post A Payment Bond </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  14. 14. Federal Miller Act <ul><li>Who Is Not Entitled To File A Claim </li></ul><ul><ul><li>Supplier To A First Tier Supplier </li></ul></ul><ul><ul><li>Subcontractor To A First Tier Supplier </li></ul></ul><ul><ul><li>Third Tier Supplier </li></ul></ul><ul><ul><li>Third Tier Subcontractor </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  15. 15. Federal Miller Act <ul><li>The Payment Bond Protects A Limited Number Of Persons Who Have </li></ul><ul><ul><li>A Written Or Oral Contract To Supply Labor Or Provide Materials </li></ul></ul><ul><ul><li>In The Prosecution Of The Work Set Forth In The Public Contract </li></ul></ul><ul><li>Who May File A Claim </li></ul><ul><ul><li>First Tier Subcontractors </li></ul></ul><ul><ul><li>First Tier Suppliers Who Contract Directly With The Prime Contractor </li></ul></ul><ul><ul><li>Second Tier Subcontractors And Suppliers </li></ul></ul><ul><ul><ul><li>Contract Directly With A First Tier Subcontractor </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  16. 16. Federal Miller Act <ul><li>Notice Of A Claim </li></ul><ul><ul><li>First Tier Subcontractor Or Supplier Is Not Required To Give Notice </li></ul></ul><ul><ul><li>All Others Must Give Written Notice Of A Claim </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  17. 17. Federal Miller Act Hierarchy © SUSSMAN SHANK LLP | www.sussmanshank.com
  18. 18. Federal Miller Act <ul><li>Where File Lawsuit </li></ul><ul><ul><li>Federal District Court Where The Contract Was To Be Performed Or Executed </li></ul></ul><ul><li>Deadline To File Lawsuit </li></ul><ul><ul><li>One Year After The Day Material Was Last Supplied Or Labor Or Services Were Last Performed </li></ul></ul><ul><ul><li>A Lawsuit Cannot Be Filed Until 90 Days After The Last Date Labor Or Materials Were Provided </li></ul></ul><ul><ul><li>Corrective Or Repair Work Does Not Extend The Filing Deadline </li></ul></ul><ul><li>Recoverable Damages And Losses </li></ul><ul><ul><li>Delay Damages For The Increased Cost Of Labor Or Materials </li></ul></ul><ul><ul><li>Lost Profits Resulting From Delay Are Not Recoverable </li></ul></ul><ul><ul><li>Federal Officials Are Not Personally Liable </li></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  19. 19. Federal Miller Act <ul><li>Who </li></ul><ul><ul><li>To The Prime Contractor </li></ul></ul><ul><li>How </li></ul><ul><ul><li>Via Registered Mail, Postage Prepaid </li></ul></ul><ul><li>When </li></ul><ul><ul><li>Within 90 Days From The Date Last Performed Labor Or Furnished Material Or Services </li></ul></ul><ul><ul><li>The Notice Must Be Received Within The 90-Day Period </li></ul></ul><ul><li>What </li></ul><ul><ul><li>Must Accurately State The Following: </li></ul></ul><ul><ul><ul><li>The Amount Claimed </li></ul></ul></ul><ul><ul><ul><li>The Name Of The Party To Whom The Materials Were Furnished Or For Whom The Labor Or Services Were Performed </li></ul></ul></ul>© SUSSMAN SHANK LLP | www.sussmanshank.com
  20. 20. Federal Miller Act SUSSMAN SHANK LLP | (503) 227-1111 | www.sussmanshank.com | © 2009

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