b'MIDWESTRoofingConfrocfors Association,I .MadAd,lre: nc1(100 Pow,r & L,1\'11PIJ1. l\\on CihJ.Mio11Pi sos Rnh ,f P.Lions ~,TOM EGANMERLE EULERMIKE MOONEYSAM OAKFORD PresidentSecretoryVice PresidentVice PresidentExc.c11fiv1.Secrdm11 248 N. Chicago416 Cherokee323 West 4th St.1365 Osage Solina, KansasLeavenworth, KansasHutchinson, KonsosDenver, ColoradoGRon,I1-0848 VolumeIIIBU LLETINApril Issue31959 orks BondingonPublicWIntheApril1958issueofthisBulletinwereviewedthe principalprovisionsoftheMillerAct.Wehavereceivedanumberofinquiriesconcerningbondingonpublicworks,andbelieve thatthi ssubjectmeritsfurtherconsiderati.on. Youcannotacquiream \' slienonpublicworks.In echanicordertoprotectthesubcontractoragainsttheinsolvencyofthe generalcontractor,thefederalgovernmentrequires ,underthe M_ll er Act ,thatgeneralcontractorssupplybothperformanceand ipaymentbondsonanycontractworthover$2, 000.Thegovernment, asowner,isprimarilyconcernedwiththeperformancebondsince it guaranteesthatthecontractwillbeperformedinaccordance withitsprovisions.You ,thesubcontractor,areconcernedwith thepaymentbondwhichprovidesaspecificguaranteeo.freimbursementforalllaborandmaterialssupplied .It givesyouadirect rightofactionagainstthesuretyforamountsdueyoubythe generalcontractor. \'rheamountoftheperformancebondisnotspecificallyset bys tatute~butislefttothegovernmentalinstrumentalitylettingthecontract.Theamountoft hepaymentbond,ontheother hand,isdefinedintheA asone-halfthecontractpriceon ct projectscostinglessthan$1,000,000,andslightlylessthan halfforlargerprojects .Ther i ghttos ueonapaym bondis ent limitedtothosecontractingdirectlywiththeprimecontractor or withhisimmediatesubcontractorsorsuppliers.Recoveryon thebondi sdeniedpersonslowerdownthecontractual.chain.In ordertoprovidecoverageforall_personsprovidinglaboror materialoncertainlargeprojects,thegovernmentmayinsist thatthegeneralcontractorrequi rethesubcontract orstobond themselves . Asubcontractorfurnishinglaborormaterialsdi.retoa ct generalcontractor neednotgivewrittennoticetothecontractorofitsclaim,butmayproceeddirectly againstthesurety onthebondanytimeafter90daysfromthedatet helastl abor ormaterialw furnishedandbeforetheexpirationofoneyear as hA K"-\'1EIEA M IDWEST ROOFING CONTRACTORS ASSOCIATION'