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Projects worth how much require bonds under the Miller Act?
$100,000
$110,000
$25,000
$50,000
The correct answer is: $100,000
The Miller Act mandates that for construction projects funded by the federal government, contracts exceeding a specified monetary value must be accompanied by surety bonds. This requirement primarily serves to protect the interests of contractors and subcontractors by ensuring that they will be compensated for their work, materials, and labor. The threshold specified by the Miller Act is $100,000. Therefore, any project that has a value greater than or equal to this amount requires the contractor to furnish both a performance bond and a payment bond. This is essential for contractors as it provides a layer of security, ensuring that funds will be available to pay for labor and materials, promoting trust and stability in public construction contracts. Understanding this figure is crucial to compliance and risk management in federal construction projects.