Sub-contractors put money up front for materials and labor for which they must often wait long periods of time for payment. This hurts cash flow and restricts the ability of the small contractor to pursue or to do other projects. If there is a disagreement in the contract concerning payment, small business can not afford to take on the large contractor who have lawyers on staff. The Miller Act is in place but it does not allow for reimbursement of lawyer fees that are often more than the amount fighting for. The only alternative left to the small contractor is to walk away.
Legislation is meaningless without enforcement.
Chairman Talent is very concerned about the effect of contract bundling on small business and the Administration's ignorance of the 1997 law requiring the Administration to review small business appeal to bundling. At the hearing, Chairman Talent revealed that he is considering legislation that will strengthen the steps the Administration can take to mitigate the harmful affects of bundling on small business.