AHCC is outraged over the fact that the Washington Metropolitan Area Transit Authority (WMATA), on guidance from the Federal Transit Administration, caps their payment bond requirement of their primes to $2.5 million. Kiewit, who was recently awarded a $260 million contract from WMATA, only provided a payment bond at $2.5 million, less than 1% of the contract value. However, subcontractors on that project and other similar WMATA projects are required by the Prime Contractors to post a payment bond at 100%. Because WMATA is a public agency, you cannot lien the project. The only recourse is to file a lien or file suit against the payment bond. Most MBE subcontractors tend to work at the end of the project – drywall, acoustical ceilings, floors, paint, landscape work, etc. By the time they are not paid for change order work, retention, delay claims, or for work performed, etc., there will be little left of the GC’s payment bond. It is first come, first served for payment bond claims. And, yes, by the way, the payment bond is free. Sureties only charge on the performance bond. So, why WMATA is capping the payment bond, which is in essence robbing subcontractors of their lien rights and causing MBEs and small businesses to become more disadvantaged, is a question the subcontractor community should be asking of WMATA, their US and state representatives, the Office of Civil Rights, the US Inspector General Office. The Miller Act is a law and no regulation/guideline rules supreme over the law. To read more about it.