The __________ requires that federal projects valued over $100,000 must produce a performance bond to guarantee completion of the project.

Study for the HBLB Business and Law Test. Prepare with multiple choice questions, hints, and explanations. Master the business and law concepts for your exam!

The Miller Act is designed specifically to protect those involved in the construction industry by requiring a performance bond for federal projects that exceed $100,000 in value. This bond serves as a guarantee that contractors will complete their projects according to the terms of the contract. It ensures that subcontractors and suppliers are compensated for their work, thereby providing a safety net against potential non-completion of a project or default by the contractor.

By mandating this bond, the Miller Act helps maintain financial security within the construction industry, promoting fair business practices and protecting the interests of those who contribute labor and materials to public projects. Other options do not focus on similar bonding requirements for federal contracts specifically, making the Miller Act the most relevant answer.

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