Contractor License Practice Exam

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Prepare for the Contractor License Exam with comprehensive quizzes. Study with multiple choice questions, flashcards, and detailed explanations to ensure you're ready for success on exam day!

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Which act requires federal projects valued over $100,000 to produce a performance bond?

Miller Act
Davis-Bacon Act
Contract Work Hours and Safety Standards Act
Occupational Safety and Health Act

The correct answer is: Miller Act

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.