Maine Performance Bond14 M.R.S. § 871
Maine's Little Miller Act requires a performance bond, and a payment bond alongside it, on covered public works contracts. The trigger: $125,000. The performance bond guarantees the public owner that the job gets finished; the payment bond protects the subcontractors and suppliers who cannot lien public property.
Maine's $125,000 trigger is lower than the federal Miller Act's $150,000, so state and local jobs need bonds at a size where a federal job would not.
- Who requires it: Maine public owners awarding covered public works contracts (14 M.R.S. § 871).
- Amount: Performance bond: 100% of contract amount. Payment bond: 100% of contract amount.
- Typical cost (estimate): about $1,250-$2,500 on a $125,000 contract with excellent credit, up to $6,250-$12,500 below 620. The surety sets the final price.
- Timing: Same-day submission; most quotes within one business day.
Maine public works bonding at a glance
- Bond threshold
- $125,000
- Controlling statute
- 14 M.R.S. § 871
- Performance bond amount
- 100% of contract amount
- Payment bond amount
- 100% of contract amount
- Claim notice (sub-tier claimants)
- A claimant with a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the prime contractor has no right of action on the payment bond unless it gives written notice to the contractor within 90 days from the date it performed the last labor or furnished the last material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was performed. Service by registered or certified mail, postage prepaid, addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence (§871(4)). Special rule for material suppliers whose claim is not ascertainable due to unavailability of final quantity estimates: notice of claim to the contractor must be filed before expiration of 90 days following the contracting authority's determination of final quantity estimates. No preliminary notice requirement stated in the statute.
- Deadline to sue on the payment bond
- Earliest: claimant may sue if not paid in full before the expiration of 90 days after the day it last performed labor or furnished material. Latest: action may not be commenced after one year from the date on which the last of the labor was performed or material was supplied; exception for material suppliers whose claim is unascertainable due to unavailable final quantity estimates - one year from the date final quantity estimates are determined (§871(4)). Venue: action must be brought in the county where the public work is located (§871(6)).
- Federal jobs in Maine
- Miller Act (40 U.S.C. § 3131): bonds on federal contracts over $150,000
Source: 14 M.R.S. § 871 and the claim statutes cited below. Requirements change; confirm the current statute and your contract before bidding.
Getting paid: Maine payment bond claims
On public work you cannot file a mechanics lien against the property, so the payment bond is the security for unpaid labor and materials. Miss a deadline and the claim can be lost.
Notice
A claimant with a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the prime contractor has no right of action on the payment bond unless it gives written notice to the contractor within 90 days from the date it performed the last labor or furnished the last material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was performed. Service by registered or certified mail, postage prepaid, addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence (§871(4)). Special rule for material suppliers whose claim is not ascertainable due to unavailability of final quantity estimates: notice of claim to the contractor must be filed before expiration of 90 days following the contracting authority's determination of final quantity estimates. No preliminary notice requirement stated in the statute.
Lawsuit deadline
Earliest: claimant may sue if not paid in full before the expiration of 90 days after the day it last performed labor or furnished material. Latest: action may not be commenced after one year from the date on which the last of the labor was performed or material was supplied; exception for material suppliers whose claim is unascertainable due to unavailable final quantity estimates - one year from the date final quantity estimates are determined (§871(4)). Venue: action must be brought in the county where the public work is located (§871(6)).
Statute text: source 1. General information, not legal advice.
What a Maine performance bond costs
The premium is a percentage of the contract price, and the performance and payment bonds on a public job are usually priced together. Here is the math on a $125,000 contract, the size where Maine's bond requirement starts:
Maine performance bond cost by credit profile
Based on a $125,000 Contract bond amount
- Excellent (750+)Rate: 1-2%$1,250-$2,500
- Good (680-749)Rate: 2-3%$2,500-$3,750
- Fair (620-679)Rate: 3-5%$3,750-$6,250
- Below 620Rate: 5-10%$6,250-$12,500
Illustrative ranges. Final pricing is set by the issuing carrier based on credit, financial statements, experience and the job.
How to get bonded for a Maine public job
- 1.Check the bid documents for the bond forms, amounts and any bid bond the owner requires at bid time.
- 2.Apply once for the program: company financials, work in progress, and the job details. Smaller jobs can often be underwritten on credit alone.
- 3.On award, we place the performance and payment bonds with a Treasury-listed carrier on the owner's form; you pay only when the bonds are issued.
Maine performance bond questions
Does Maine require a performance bond on public projects?
Yes. Maine's Little Miller Act (14 M.R.S. § 871) requires contractors on covered public works contracts to post performance and payment bonds. The trigger: $125,000. Private owners and lenders can also require one by contract.
What is the Maine Little Miller Act threshold?
$125,000. Maine's $125,000 trigger is lower than the federal Miller Act's $150,000, so state and local jobs need bonds at a size where a federal job would not.
How much does a performance bond cost in Maine?
Premiums are a percentage of the contract price and depend mainly on the contractor's credit, financials and experience. On a $125,000 contract, typical ranges run about $1,250-$2,500 for excellent credit up to $6,250-$12,500 below 620. The issuing carrier sets the final price.
What is the deadline to sue on a Maine payment bond?
Earliest: claimant may sue if not paid in full before the expiration of 90 days after the day it last performed labor or furnished material. Latest: action may not be commenced after one year from the date on which the last of the labor was performed or material was supplied; exception for material suppliers whose claim is unascertainable due to unavailable final quantity estimates - one year from the date final quantity estimates are determined (§871(4)). Venue: action must be brought in the county where the public work is located (§871(6)). (14 M.R.S. § 871 (Public Works Contractors' Surety Bond Law of 1971)). Confirm the deadline against the statute and your contract before relying on it.
Do subcontractors have to give notice before a Maine payment bond claim?
A claimant with a direct contractual relationship with a subcontractor but no contractual relationship, express or implied, with the prime contractor has no right of action on the payment bond unless it gives written notice to the contractor within 90 days from the date it performed the last labor or furnished the last material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or for whom the labor was performed. Service by registered or certified mail, postage prepaid, addressed to the contractor at any place the contractor maintains an office or conducts business, or at the contractor's residence (§871(4)). Special rule for material suppliers whose claim is not ascertainable due to unavailability of final quantity estimates: notice of claim to the contractor must be filed before expiration of 90 days following the contracting authority's determination of final quantity estimates. No preliminary notice requirement stated in the statute. (14 M.R.S. § 871 (Public Works Contractors' Surety Bond Law of 1971)).
Who needs a Maine performance bond?
Contractors on public works projects in Maine above the statutory threshold. It is required by Maine public owners awarding covered public works contracts (14 M.R.S. § 871). The bond amount is performance bond: 100% of contract amount; payment bond: 100% of contract amount.
How do I get a Maine performance bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
A licensed agent reviews your request and submits it to the carrier; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
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