Construction lien law can be an intimidating topic for even the most experienced person like myself. In the past twenty (20) years, I have co-written two versions of PreLien2Lien, our leased construction lien software solution. In 2009 I founded TRADITION LIEN SERVICE, one of the leading construction lien services in the U.S. And I have been helping thousands of companies since 2003 navigate and use for their businesses construction lien law in fifty (50) states and the District of Columbia. So while construction lien law is a topic I have a lot of experience in, the overwhelming majority of people have very little experience.
In order to continue improving and learning, whether it is for work or completing my MBA at the UNIVERSITY OF ILLINOIS, I am much more productive by effectively using technology. And technology keeps advancing, such as when desktop software started being eliminated by cloud based computing. In 2023, search engines such as GOOGLE and BING are facing a new technology threat, Artificial Intelligence (AI) software. The most talked about AI software is ChatGPT. But GOOGLE has their own version, Bard, and MICROSOFT’s Bing search engine now has an option for Bing AI.
Personally, I recently used Bard to research an issue that I am facing related to ending my running hobby due to my age and heart health. Specifically, I asked Bard “…how long can you run with a maximum heart rate at age 59”. The natural language response came back as follows: “The amount of time you can run with a maximum heart rate at age 59 depends on a number of factors, including your fitness level, your genetics, and the weather conditions. However, as a general rule of thumb, you should not run at your maximum heart rate for more than 20 minutes at a time.”
Taking this approach of using AI software and using it to better understand construction lien law, I asked the following question to ChatGPT, Bard, and Bing AI: “Do all Federal construction projects over $25,000 need to be bonded according to the Miller Act”
Responses from the leading FREE AI software solutions follows:
Bard | No, not all federal construction projects over $25,000 need to be bonded according to the Miller Act. The Miller Act requires that prime contractors on federal construction projects in excess of $100,000 furnish a payment bond and a performance bond. However, there are a few exceptions to this requirement.
One exception is for projects that are funded by the Small Business Administration (SBA). The SBA has its own bonding requirements, which are generally less stringent than the Miller Act requirements.
Another exception is for projects that are performed by the federal government itself. The federal government is not required to obtain a bond from a private surety company.
Bing AI | According to the Miller Act of the early 20th century, payment and performance bonds have been a requirement on all government projects over $100,000. In 1994, the act was amended to require bonds on all projects valued over $25,0001. Therefore, all Federal construction projects over $25,000 need to be bonded according to the Miller Act.
ChatGPT | According to the Miller Act, all federal construction contracts that exceed $150,000 in value are required to be bonded. However, for contracts that are between $25,000 and $150,000, the contracting officer may require a bond at their discretion.
In summary, federal construction projects over $25,000 may require bonding under the Miller Act depending on the specific circumstances of the contract and the decision of the contracting officer.
As you can see, there are both similarities and differences in the respective responses. But in just a couple of minutes, you can gain a great deal of insight with just one simple, English language question about construction lien law using freely available AI software.