North Carolina Building Contractor License Practice Exam

The Miller Act requires that all federal projects exceeding what amount must be bonded?

1. $1,000

2. $10,000

3. $50,000

4. $100,000

The correct answer is: $10,000

The Miller Act requires that all federal construction projects exceeding the amount of $100,000 must be bonded. Specifically, it mandates that a performance bond and a payment bond be provided to protect the interests of the federal government and subcontractors or suppliers, ensuring that any debts incurred for labor and materials on the project are paid. The specified bonding requirement serves to secure the project and provide assurances against default by contractors, thereby providing a measure of financial security for public funds. In the context of this act, the threshold for bonding is significant, as bonding requirements typically apply to larger projects due to the greater financial risk involved. Understanding the bonding threshold of the Miller Act is crucial for contractors who participate in federal projects to ensure compliance with federal regulations and to safeguard their own interests, as well as those of their employees and subcontractors.