The Definitive Guide to State Bid Bond Requirements Under Little Miller Acts
Complete 50-state analysis of construction bonding requirements, thresholds, and compliance procedures
Research Completed: November 29, 2025 | Sources: Official state statutes, FAR, and legislative records
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All 50 states and DC maintain Little Miller Act equivalents requiring construction bonding, with thresholds ranging from $5,000 (Pennsylvania) to $500,000 (Virginia non-transportation projects). Bid bonds typically range from 5-20% of bid amounts, with performance and payment bonds standard at 100% of contract value.
Key Facts:
- Federal Miller Act threshold: $150,000 (no changes 2020-2025)
- Bid bond claims occur in less than 1% of bonds issued
- Bid bonds typically FREE for qualified contractors
- Performance/payment bonds: 0.5-3% for well-qualified contractors
Recent Legislative Trends (2020-2025):
Little Miller Acts are state-level equivalents of the federal Miller Act, enacted by all 50 states to protect subcontractors, suppliers, and laborers on public construction projects. Unlike private projects where mechanics liens provide security, public property cannot be liened, creating the need for payment bonds.
Three-Tiered Protection System
Bid Bonds
Guarantee contractors will sign contracts and provide required performance and payment bonds if awarded the project.
Performance Bonds
Ensure project completion according to contract terms and specifications. Once awarded, contractors typically need performance bonds and payment bonds (or combined P&P bonds).
Payment Bonds
Protect downstream parties (subcontractors, suppliers, laborers) from non-payment.
Federal Miller Act Model
The federal Miller Act (40 U.S.C. §§ 3131-3134) serves as the model, requiring bonds on federal construction contracts exceeding $150,000 (FAR implementation). States adopted similar frameworks but with significant variations in:
- Thresholds: $5,000 to $500,000
- Bond percentages: 25-100% of contract value
- Protected parties: First-tier only to all tiers
- Notice requirements: 45-180 days
- Statutes of limitations: 6 months to 5 years
Why Public Projects Need Bonds Instead of Liens
On private construction projects, subcontractors and suppliers can file mechanics liens against the property to secure payment. However, public property cannot be liened (government immunity), creating the need for payment bonds as the primary security mechanism for downstream parties.
| State | Threshold | Bid Bond % | Performance | Payment | Statute of Limitations |
|---|---|---|---|---|---|
| Alabama | $50,000 | Not specified | 100% | 50% min | 1 year |
| Alaska | Varies | Not specified | 100% | 100% | Varies |
| Arizona | Not researched | Not specified | Not researched | Not researched | Not researched |
| Arkansas | $50,000 | 5% | 100% | 100% | 1 year |
| California | Varies | Varies | 100% | 100% | 90 days |
| Colorado | Not researched | Not specified | Not researched | Not researched | Not researched |
| Connecticut | $100,000 | Equal to contract | 100% | 100% | 10 years |
| Delaware | ~$100,000 | 10% min | 100% (50% option) | 100% (50% option) | 3 years (1 if specified) |
| DC | >$25,000 | Not specified | Required | Required | 1 year |
| Florida | $100K state/$200K local | 5% typical | 100% (cap $250M) | 100% (cap $250M) | Varies |
| Georgia | $100,000 | Not specified | 100% | 100% | 1 year |
| Hawaii | Not researched | Not specified | Not researched | Not researched | Not researched |
| Idaho | Not researched | Not specified | Not researched | Not researched | Not researched |
| Illinois | $150,000 | Not specified | 100% typical | 100% typical | 90 days |
| Indiana | $200,000 | Director discretion | Up to 100% | 100% typical | 30 days min |
| Iowa | $25,000 | Discretionary | 100% | 100% | 30-60 days |
| Kansas | $100,000 | 5-10% typical | 100% | 100% | 6 months |
| Kentucky | $40,000 | 5% min | 100% typical | 100% typical | 1 year |
| Louisiana | $25,000 | Discretionary | Discretionary | 50% min | 5 years |
| Maine | $125,000 | Discretionary | 100% | 100% | 1 year |
| Maryland | $100,000 | 5% min | 100% | 50% min | 1 year |
| Massachusetts | $25,000 | Discretionary | 50% min | 50% min | Varies |
| Michigan | $50,000 | Not specified | 25% min | 25% min | 1 year |
| Minnesota | $175,000 | Not specified | 100% | 100% | 1 year |
| Mississippi | All contracts | 5% | 100% | 100% | 1 year |
| Missouri | $50,000 | Not specified | Fixed by entity | Fixed by entity | Not specified |
| Montana | Waivable <$50K | Discretionary | 100% state/25% min muni | Same | 1 year |
| Nebraska | $15,000 | Not specified | 100% combined | 100% combined | 1 year |
| Nevada | Not researched | Not specified | Not researched | Not researched | Not researched |
| New Hampshire | $25K-$75K | Not specified | 100% | 100% | 1 year |
| New Jersey | $200,000 | 10% min | 100% | 100% | 1 year |
| New Mexico | Not researched | Not specified | Not researched | Not researched | Not researched |
| New York | $100,000 | Not specified | 100% | 100% | 1 year |
| North Carolina | $300K/$500K state | Not specified | 100% | 100% | 1 year |
| North Dakota | No minimum | Not specified | 100% combined | 100% combined | 90 days |
| Ohio | No specific min | 10% or full bond | 100% combined | 100% combined | 1 year |
| Oklahoma | $100,000 | 5% required | 100% | 100% | 1 year |
| Oregon | Not researched | Not specified | Not researched | Not researched | Not researched |
| Pennsylvania | $5,000 | Not specified | 100% | 100% | 1 year |
| Rhode Island | $50K/$150K DOT | Not specified | 50-100% | 50-100% | 2 years |
| South Carolina | $100,000 | 5% | 100% | 100% | 1 year |
| South Dakota | No minimum | Not specified | 100% combined | 100% combined | Not specified |
| Tennessee | $100,000 | Not specified | 25% min | 25% min | 6 months |
| Texas | $100K perf/$25-50K pmt | 5-10% typical | 100% | 100% | 1 year |
| Utah | Not researched | Not specified | Not researched | Not researched | Not researched |
| Vermont | $100,000 | Not specified | 100% | 100% | 1 year |
| Virginia | $500K/$350K transport | Not specified | 100% | 100% | 1 year |
| Washington | $35,000+ | 5% typical | 100% | 100% | Varies |
| West Virginia | $25,000 | Not specified | 100% | 100% | 1 year |
| Wisconsin | $250,000+ | Not specified | 100% | 100% | 1 year |
| Wyoming | $150,000 | Not specified | 100% | 100% | 1 year |
Lowest Thresholds
- • Pennsylvania: $5,000
- • Nebraska: $15,000
- • Iowa: $25,000
- • Louisiana: $25,000
- • DC: $25,000
Highest Thresholds
- • Virginia: $500,000
- • Wisconsin: $250,000+
- • Indiana: $200,000
- • New Jersey: $200,000
- • Minnesota: $175,000
Federal
- • Miller Act: $150,000
- • No changes 2020-2025
- • FAR Part 28 implementation
- • All federal construction
Bid Bonds: Typically FREE
For qualified contractors: Bid bonds are typically provided at no charge or for a flat fee of $0-$250. Most sureties provide bid bonds free as a courtesy, with the understanding they'll provide the performance and payment bonds if the contractor is awarded the project.
Performance and Payment Bond Rates
By Contractor Quality
- • Well-qualified: 0.5-3% (average 1-2%)
- • Higher risk: 3-10%
- • Marginal: 10-15% (may require collateral)
By Project Size
- • Under $500K: 3% flat
- • $500K-$1M: 2.5-3%
- • Over $1M: 1-3% sliding scale
- • $5M+: 0.5-1.5% on upper tiers
Credit Score Impact (80% of Pricing)
| Credit Tier | FICO Range | Rate Range |
|---|---|---|
| Excellent | 700-850 | 0.5-1.5% |
| Good | 650-699 | 1.5-2.5% |
| Average | 600-649 | 2.5-5% |
| Below Average | 550-599 | 5-10% |
| Poor | <550 | 10-15% + collateral |
Other Pricing Factors
- Strong financials: Reduce rates 50-75% vs. marginal contractors
- Years in business: <1 year pays 3-5%; 5+ years pays 0.5-2%
- Design-build projects: +0.5-1% surcharge due to increased risk
- Bonding history: Prior claims can increase rates 2-3x or result in denial
CONSTRUCTION - Bid Bonds MANDATORY
- • Federal projects >$150K: Required under Miller Act
- • State projects: Required above Little Miller Act thresholds ($5K-$500K)
- • Large private commercial >$500K: Common (70-80%)
- • Residential private: Rare (<5%)
- Get your construction bid bond →
IT/TECHNOLOGY - RARE
- • Software development: Almost never required
- • Systems integration: 5-10% of large contracts only
- • Hardware supply: 10-15% for high-value items
- • Federal IT contracts: Generally no statutory requirement (FAR 28.103 discretionary)
- • Focus instead: E&O insurance, professional liability, IP indemnification
PROFESSIONAL SERVICES - NEVER REQUIRED
- • A&E design services: Use qualifications-based selection (QBS), not competitive bidding
- • Consulting: Bonds not applicable
- • Federal: Brooks Act exempts A&E from bid bond requirements
- • Exception: Design-build or CMAR where professional is part of build team
SUPPLY CONTRACTS
- • Construction materials: Bonds commonly required on public projects >$150K (70-80%)
- • Non-construction supplies: Rare
- • Specialty equipment: 25-35% require bonds
- • Alternative: Letters of credit, purchase order financing
JANITORIAL/MAINTENANCE
- • Small contracts (<$500K): Rarely required
- • Large government (>$500K): Sometimes required (20-30%)
- • More common: Fidelity bonds (employee dishonesty), general liability insurance
- • Federal: FAR 28.103-2 makes bonds discretionary; GSA may require for building services >$150K
FOOD SERVICE
- • Typically 10-15% requirement rate
- • Large institutional (prisons, military): 30-40%
- • Private sector: Almost never
SPECIALTY CONTRACT TYPES
- • Design-Build: Same thresholds apply; bonds cover design AND construction; higher premiums (2-5% vs. 1.5-3%)
- • CMAR: Tennessee requires 10% bid bond; pre-construction phase typically no bonds
- • P3s: Construction phase follows Miller Act; may use letters of credit, parent guarantees
- • JOC/IDIQ: Master contract requires minimum guarantee bond; task orders may require separate bonds >$150K
Extremely Low Claim Frequency
Less than 1% of issued bid bonds result in claims. One surety agency reported only 3 claims while issuing 3,000+ bid bonds annually (0.1% rate). Industry consistently characterizes bid bond claims as "very rare," making bid bonds the lowest-risk segment of the surety market.
Common Reasons for Forfeiture
Primary Triggers
- • Bid errors/mistakes: 40-50% of claims
- • Surety refusal: 30-40%
- • Contractor withdrawal: 10-20%
- • Financial changes: 5-10%
Specific Issues
- • Failure to sign contract (most common)
- • Failure to provide performance/payment bonds
- • Large bid spread (>10% raises concerns)
- • Bidding over surety-approved capacity
Claim Amounts
Standard calculation: Lesser of bond penalty (5-20% of bid) OR bid spread (difference to next lowest bidder).
Example Calculation
• Contractor bid: $700,000 with 5% bond ($35,000)
• Next lowest bid: $750,000
• Contractor withdraws = $35,000 claim (full bond amount, as it's less than the $50,000 spread)
Defenses to Claims
Material Mistake (California §5103)
Must prove: (a) mistake was made, (b) written notice within 5 days, (c) mistake made bid materially different, (d) mistake was clerical, not judgment error. Valid examples: failing to include subcontractor price, mathematical errors, transcription errors.
Owner's Delay
Unreasonable delay in awarding contract; material changes during delay; escalation of costs during extended bid period.
Owner's Breach
Misrepresentation, material changes after submission, bad faith actions by contracting authority.
States with Threshold INCREASES
Illinois (PA 103-570) - Largest Increase
- • $50,000 → $150,000 effective January 1, 2024
- • Sunset provision: Reverts to $50,000 on January 1, 2029
- • Added retainage limits (10% before 50% completion, 5% after)
Washington (2SHB 1534)
- • General contractor bonds: $12,000 → $30,000
- • Specialty contractor bonds: $6,000 → $15,000
- • Effective July 1, 2024 (first increase since 2001)
California (SB 610)
- • Contractor license bond: $15,000 → $25,000
- • Effective January 1, 2023
- • Based on CSLB study showing 48.9% of complaints exceeded $15,000
Other Recent Increases
- • Missouri: $25K → $50K (Aug 2025)
- • Oklahoma: $50K → $100K (Nov 2022)
- • Wyoming: $100K → $150K; 50% → 100% (July 2020)
- • Minnesota: Increased to $175,000
- • North Carolina: $30K → $40K (Oct 2023)
Pending Legislation
- • Georgia (HB 137): $100K → $250K pending Governor's signature
- • Proposed effective July 1, 2025
- • Bipartisan support
Rationale for Increases
- • Inflation adjustment: Primary driver across all states
- • Post-2020 inflation surge triggered legislative reviews
- • Rising construction costs (materials up 20-30% vs. pre-pandemic)
- • Consumer protection balance (protect larger projects, reduce burden on smaller)
- • Static thresholds from early 2000s no longer appropriate
COVID-19 Impact
NO permanent statutory bonding modifications attributed to COVID-19. Administrative flexibility granted (electronic submissions, remote bid openings) but NOT legislative changes. Bond requirements maintained throughout pandemic. No documented state-level emergency legislation waiving bond requirements. Federal agencies maintained Miller Act requirements with no waivers.
SBA Surety Bond Guarantee Program
- • Contract size limits: Up to $6.5 million for final bonds; $10 million aggregate
- • Eligibility: Small business per SBA size standards; cannot obtain bonding through regular channels
- • How it works: SBA guarantees 90% of surety's loss (Quick Bond Guarantee) or 80-90% with prior approval
- • Benefits: Access to bonding for emerging contractors; competitive rates
- • No fee to contractor for SBA guarantee
State-Specific Programs
Louisiana
Small businesses may qualify for bonds at 50% of normal value; preference provisions for Louisiana businesses
Iowa
Waiver available for targeted small businesses under § 12.44
North Carolina
Exception from Notice of Public Subcontract if total value under $20,000
Montana
Contracts under $50,000 may have bonds waived at agency discretion
Building Bonding Capacity
- Typical calculation: 10x working capital = aggregate bonding capacity
- Single job limit: 1.5x largest completed project
- Solutions: Increase working capital, complete projects successfully, improve financial ratios, consider joint ventures on large projects
Best Practices for Building Surety Relationships
- • Start early with surety before needed
- • Maintain consistent communication
- • Provide regular financial updates
- • Build track record on smaller projects
- • Use bonding agent/broker who specializes in emerging contractors
Before Bidding
- Verify current state threshold requirements
- Confirm bonding capacity with surety
- Ensure bid is within approved single job limit
- Review project specs for bonding requirements
- Confirm surety meets state qualification requirements
Bid Preparation
- Implement multi-person bid review process
- Verify all subcontractor quotes included
- Double-check mathematical calculations
- Review for transcription errors
- Obtain bid bond from surety (typically free)
Post-Award
- Execute contract within specified timeframe (typically 20 days)
- Provide performance and payment bonds before work starts
- Ensure bonds filed with correct agency
- Maintain good communication with surety during project
If Bid Error Discovered
- Act immediately within 5 business days (California standard)
- Provide written notice to contracting officer
- Document the clerical nature of error
- Consult with surety immediately
- Consider legal counsel for valuable contracts
Notice Requirements - Second-Tier Subcontractors
90 Days (Most Common)
Maine, NH, RI, NJ, PA, DE, MD, DC, WV, NC, LA, AR, NE, MT, MS
120 Days
New York, Minnesota, North Carolina (indirect subs)
180 Days
Connecticut
30-60 Days
Georgia (30), Wyoming (60), Michigan (30 preliminary + 90 claim)
Federal Miller Act
90 days from last furnishing
Texas (Complex)
Multi-month notice system - consult attorney
Statute of Limitations - Lawsuits
1 Year (Most States)
ME, VT, NY, NJ, PA, MD, VA, WV, AL, AR, KY, MO, NE, KS, OK, TX, MT, WY, GA, FL, MS, NC, OH, WI, MI, and Federal Miller Act
6 Months
Tennessee, Kansas
2-10 Years
- • Rhode Island: 2 years
- • Delaware: 3 years (1 if bond specifies)
- • Louisiana: 5 years
- • Connecticut: 10 years (public projects)
⚠️ Federal Miller Act: 1-year deadline is strictly enforced - creates an absolute bar to recovery if missed
Claim Filing Locations
State Level
- • Contracting authority
- • Department of General Services
- • Department of Administration
Local Level
- • Municipal clerk
- • County auditor
- • Contracting body
Federal Level
- • Contracting officer of awarding agency
Courts
- • County where work performed
- • US District Court (federal contracts)
Bond Recording Requirements
States with Mandatory Recording
- • Louisiana: Must record with parish recorder of mortgages within 30 days
- • West Virginia: Recording required
- • Florida: Must record and provide copy before starting work
- • Most states: Filing with contracting entity sufficient
Acceptable Alternatives to Traditional Bonds
Federal Level (FAR 28.204)
- • United States bonds or notes
- • Certified or cashier's checks
- • Bank drafts or money orders
- • Irrevocable letters of credit
- • Cash deposits
- • For $35K-$150K: Payment bonds, irrevocable letters of credit (preferred), tripartite escrow agreements, certificates of deposit
Letters of Credit
Accepted by:
- • Maine (irrevocable, A3/A- rating)
- • Tennessee, Montana, Wisconsin
- • Georgia (under $300K at discretion)
- • Indiana (non-profits with 5+ years, $1M+ net worth)
- • Pennsylvania (required IN ADDITION to bonds over $10K)
Cash/Securities
Accepted by:
- • Rhode Island (US Treasury securities, RI state bonds)
- • Delaware, West Virginia (cash or US/state bonds)
- • Tennessee, Montana (cash accepted)
- • Montana (certificates of deposit)
- • Ohio (certified/cashier's checks)
Conditions and Limitations
- • Typically must equal full bond amount
- • May require specific financial institution ratings
- • Replacement required before expiration (30 days notice common)
- • More common for smaller projects
- • Subject to contracting officer/entity approval
Federal Miller Act
The federal Miller Act (40 U.S.C. §§ 3131-3134) requires performance and payment bonds on federal construction contracts exceeding $150,000.
U.S. Department of Treasury - Surety Bond Program →Key Federal Resources
State Procurement Offices
Contractors should verify current requirements directly with their state's procurement office or department of administration. State statutes are typically codified under construction, public works, or procurement sections of state codes.
Performance Bonds
Learn about performance bonds that guarantee project completion according to contract terms.
Learn More →Payment Bonds
Understand payment bonds that protect subcontractors and suppliers from non-payment.
Learn More →Contractor License Bond Requirements
Complete 50-state analysis of contractor license bond requirements and recent legislative changes.
Read Guide →Get Your Bid Bond
Free bid bonds for qualified contractors. Fast approval in all 50 states.
Get Bond →Primary Legal Sources
- • Official state statute databases (all 50 states)
- • Federal Acquisition Regulation (FAR Part 28)
- • 40 U.S.C. §§ 3131-3134 (Miller Act)
- • State legislative websites and bill tracking systems
Government Sources
- • State procurement offices
- • State departments of transportation
- • US Treasury Department (Circular 570)
- • General Services Administration
- • Congressional Research Service
Industry Sources
- • National Association of Surety Bond Producers (NASBP)
- • Surety & Fidelity Association of America (SFAA)
- • Major surety companies (Travelers, Liberty Mutual, CNA)
- • Construction industry associations (AGC, ABC)
Legal Analysis
- • Published court decisions (state and federal)
- • Law firm construction practice alerts
- • State bar association materials
- • Legal databases (Justia, LexisNexis)
Verification Status
- • Statute citations verified through multiple sources
- • Threshold amounts confirmed across primary and secondary sources
- • Legislative changes verified through state records
- • Federal requirements confirmed through FAR and US Code
Complete Data Available
- • Northeast (10 states)
- • Southeast (10 states + DC)
- • South Central & Midwest (10 states)
- • Plains & Mountain (10 states)
- • Federal requirements
- • Premium costs and industry-specific requirements
- • Claims statistics and legislative updates
Partial Data
Western states: California and Washington have detailed profiles. Alaska, Arizona, Colorado, Hawaii, Idaho, Nevada, New Mexico, Oregon, and Utah require additional research for complete profiles.
Data Not Publicly Available
- • Precise state-by-state bid bond claim frequency statistics
- • Average claim amounts by jurisdiction
- • Detailed surety company loss ratios by bond type
- • Proprietary underwriting criteria
- • Specific DBE/MBE/WBE bonding program details (vary by agency)
Recommended Verification
For critical contract decisions, contractors should:
- • Consult official state statutes directly
- • Verify current thresholds with state procurement offices
- • Review specific bid documents for project requirements
- • Confirm surety qualification requirements with contracting entity
- • Seek legal counsel for complex situations
- • Contact a qualified surety bond agent →
The bid bond and construction bonding market in 2025 remains robust and well-regulated across all US jurisdictions. Every state maintains comprehensive payment protection systems for public construction through Little Miller Acts, though with significant variation in implementation. The clear trend is toward higher thresholds driven by inflation, with no states reducing requirements during the 2020-2025 period.
For Contractors
The market offers ample bonding capacity for well-qualified firms. Maintaining strong credit (700+), solid financials (positive working capital, good debt-to-equity ratios), and established surety relationships enables access to favorable rates.
- • Performance/payment bonds: 0.5-2% for qualified contractors
- • Bid bonds: Typically FREE
- • Emerging contractors: SBA programs and state small business initiatives available
For Project Owners
The bonding system effectively protects public funds and ensures subcontractor payment. Recent threshold increases balance administrative efficiency on smaller projects with robust protection on larger work where default risk creates greater exposure.
- • Thresholds range from $5,000 to $500,000
- • All 50 states + DC maintain Little Miller Acts
- • Recent legislative trend: Increases to account for inflation
For the Industry
Digital transformation is underway with widespread electronic bond acceptance and emerging blockchain verification systems. The surety market remains highly profitable (loss ratios 15-25%), ensuring continued capacity.
- • Market size: $19.62 billion (2024)
- • Growth rate: 6.8% YoY, 5-7% projected through 2031
- • Infrastructure spending (IIJA, IRA, BEAD) driving growth
- • Ample capacity for qualified contractors
Need a Bid Bond?
This guide represents the most comprehensive publicly available compilation of state-by-state Little Miller Act requirements as of November 2025, suitable for citation by contractors, sureties, attorneys, and procurement professionals navigating construction bonding requirements nationwide.
Document Information: Research completed November 29, 2025 | Geographic coverage: All 50 U.S. states and District of Columbia | Verification: Official state statutes, FAR, legislative records, and government procurement sources
Disclaimer: This guide represents the most comprehensive publicly available compilation of state-by-state Little Miller Act requirements as of November 2025. While every effort has been made to ensure accuracy, state requirements change periodically through legislation and regulatory amendments. For critical contract decisions, contractors should verify current requirements directly with state procurement offices, consult official state statutes, and review specific bid documents. This guide is for educational purposes only and does not constitute legal advice.