Indiana’s “Little Miller Act,” the state’s version of the federal Miller Act, requires contractors to furnish performance and payment bonds for state-funded construction projects valued at more than $200,000. The state also has the option of requiring a performance bond for projects valued at $200,000 or less. The required bond amount for both performance and payment bonds is 100% of the contract value.
When both a performance and a payment bond are required, they are often combined in a single bond that provides the necessary protection. So the performance and payment bond for a $250,000 contract would provide $250,000 coverage for performance bond claims and $250,000 for payment bond claims.
Today, it’s becoming more common for private project owners also to require performance and payment bonds from their contractors.
