Utah General Contractors - Business and Law Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Utah General Contractors - Business and Law Exam. Prepare effectively with comprehensive quizzes and insights. Get ready for your licensing exam!

Practice this question and more.

Which act requires that federal projects valued over $100,000 must produce a bond to guarantee project completion?

Miller Act
Fair Labor Standards Act
OSHA Compliance Act
Construction Safety Act

The correct answer is: Miller Act

The Miller Act is the correct choice because it specifically mandates that any federal construction contract exceeding $100,000 requires the contractor to provide a performance bond and a payment bond. These bonds serve as a financial guarantee to ensure that the project will be completed in accordance with the terms of the contract and that subcontractors and suppliers are paid for their work and materials. The other options, while significant in their own right, do not pertain to bonding requirements for federal projects. The Fair Labor Standards Act addresses minimum wage and overtime pay but does not involve bonding. OSHA Compliance Act focuses on workplace safety standards, and the Construction Safety Act deals with safety regulations but similarly does not cover bonding. Thus, the Miller Act stands out as the legislation that is directly relevant to the requirement for bonds on federal projects.