It exists because you can't place a mechanic's lien on public property — so on federal jobs the Miller Act substitutes a payment bond as the safety net for everyone supplying labor and materials. The bond amount generally equals the full contract price and cannot be less than the performance bond. Unpaid subs and suppliers can sue the surety directly to recover what they're owed, and most states mirror this through “Little Miller Acts,” often with lower thresholds.
There are strict deadlines to preserve these rights: under the Miller Act, a claimant without a direct contract with the prime generally must give written notice within 90 days of last furnishing labor or materials, and any suit must be filed within one year — miss those windows and the claim can be forfeited entirely. Because payment and performance bonds usually travel together in the bid requirements, Nonlinear extracts both during Spec Takeoff, giving estimators a clean, early read on the surety obligations attached to an opportunity.
