SFAA & NASBP Show Support for Miller Act Indexing Exemption
May 4, 2021
The Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP) recently commended Chairwoman Nydia Velazquez (D-NY) and Congressman Byron Donalds (R-FL) on the introduction of H.R. 2949, legislation ensuring essential payment protections for subcontractors, suppliers and workers. The legislation will also ensure that performance protections for taxpayers will remain in place on federal construction contracts of $150,000 and more. The bill will exempt the Miller Act bond threshold from periodic and arbitrary increases currently required under a broad indexing law.
“Bonding federal infrastructure protects taxpayers’ dollars, ensures project completion, protects local small businesses and workers, and promotes economic growth,” said Lee Covington, president and CEO of the SFAA. “The Miller Acts provides essential remedial protections for many small businesses which furnish labor and materials on public work. If the bond threshold is raised, thousands of federal projects will no longer be protected by payment and performance bonds, leaving downstream parties exposed to significant risk of nonpayment if the contractor fails to pay them or goes out of business,” continued Covington.
To learn more about the joint support from SFAA and NASBP, view their joint press release.