What is the performance and payment bonds required on construction exceeding for Miller Act?

$150,000, per FAR 28.102-1. Subject to waiver for work outside the United States and under other authorising law. This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.

Wages, bonds and the rulebook

What is the Miller Act?

The Miller Act requires performance and payment bonds on federal construction contracts exceeding $150,000, and gives unpaid subcontractors and suppliers a right of action on the payment bond because they cannot lien federal property.

Also written as: miller act bonds, federal construction bond requirement, 40 USC 3131.

FAR 28.102-1 implements it: 40 U.S.C. chapter 31, subchapter III, formerly known as the Miller Act, requires performance and payment bonds for any construction contract exceeding $150,000, subject to waiver authority for work outside the United States and under other authorising law.

Below that, protection does not disappear. For construction contracts greater than $35,000 but not exceeding $150,000, FAR 28.102-1 requires the contracting officer to select two or more alternative forms of payment protection — payment bonds, irrevocable letters of credit, tripartite escrow agreements, certificates of deposit, or other approved security.

The statute exists because you cannot place a mechanic's lien on federal property. The payment bond is the substitute remedy, which is why a subcontractor on a federal job should always establish that a payment bond exists and obtain a copy.

What this means when you bid

Bonding capacity, not capability, is what keeps most small contractors off federal construction. Build the surety relationship before you find the job.

Miller Act: the published figures

Each figure below was read from the regulation cited beside it on 2026-08-04. Thresholds are adjusted for inflation and changed by statute — follow the citation and confirm the figure in effect on your solicitation's date before you rely on it.

Performance and payment bonds required on construction exceeding: $150,000
Alternative payment protection selected for construction between: $35,000 and $150,000

Miller Act compared with the terms it gets confused with

Miller Act vs Payment bond

The Miller Act is the statute; the payment bond is one of the two instruments it requires.

What Payment bondmeans →

Where this definition comes from

Federal contracting is one of the few fields where the authoritative answer is free, public and one click away. These are the sources this page is built from — go and read them.

FAR 28.102-1→
Performance and payment bonds.
40 U.S.C. ch. 31, subch. III→
The Miller Act.
FAR Part 28→
Bonds and insurance.

This page explains a term in plain English and cites the authority it comes from. It is not legal advice, and the regulation governs where this page and the regulation differ.

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Miller Act— common questions

What is the Miller Act?: The Miller Act requires performance and payment bonds on federal construction contracts exceeding $150,000, and gives unpaid subcontractors and suppliers a right of action on the payment bond because they cannot lien federal property.
What is the difference between Miller Act and Payment bond?: The Miller Act is the statute; the payment bond is one of the two instruments it requires.
What is the performance and payment bonds required on construction exceeding for Miller Act?: $150,000, per FAR 28.102-1. Subject to waiver for work outside the United States and under other authorising law. This figure was read from that source on 2026-08-04; thresholds are revised, so check the citation before relying on it in a bid.
Why does the Miller Act matter when you are bidding?: Bonding capacity, not capability, is what keeps most small contractors off federal construction. Build the surety relationship before you find the job.

Related terms

Payment bond
Performance bond
Bid bond
Davis-Bacon Act — Wage Rate Requirements (Construction)

NAICS industries where this comes up most

An editorial pointer, not a measurement. These are the codes whose work most often involves the Miller Act. Each page carries the official Census title, the SBA size standard where one is published for those exact digits, and whatever federal award history the record here holds for the code — which may be none, and says so when it is.