Contractor License Practice Exam

The Miller Act is designed to protect those who work on federal construction projects by requiring that contractors provide performance and payment bonds for projects exceeding $100,000. This legislation ensures that subcontractors and suppliers are paid for their work and materials, thereby preventing financial loss due to contractor default. The performance bond guarantees that the contractor will complete the project according to the contract terms, while the payment bond ensures that subcontractors and suppliers are compensated.

Other acts mentioned, such as the Davis-Bacon Act, focus primarily on labor standards, requiring payment of prevailing wages on federal projects. The Contract Work Hours and Safety Standards Act pertains to labor hour requirements and safety standards, while the Occupational Safety and Health Act addresses workplace safety and health regulations but does not relate to bonding requirements for federal contracts. Thus, the Miller Act is specifically relevant for bonding on federal projects.