US FederalA federal contractor won't pay for my subcontracted work. What are my legal options?
Small claims courts do not have jurisdiction over federal contract disputes — you must pursue remedies under the Contract Disputes Act (CDA) in the U.S. Court of Federal Claims or through the contracting officer’s final decision process. Subcontractors generally lack direct privity with the federal government and must seek payment from the prime contractor, unless pursuing a Miller Act bond claim.
What the Law Says
Federal subcontractors lack privity of contract with the U.S. government and therefore cannot assert claims directly against the federal government under the Contract Disputes Act (CDA), 41 U.S.C. §§ 7101–7109, unless they are authorized representatives acting on behalf of the prime contractor. The CDA applies only to contractors in privity with the federal government; subcontractors’ remedies lie primarily against the prime contractor under state law or, if applicable, the Miller Act, 40 U.S.C. § 3131 et seq., which mandates payment and performance bonds on federal construction contracts exceeding $150,000. Under the Miller Act, a subcontractor may sue on the prime contractor’s payment bond in U.S. district court within one year of last furnishing labor or materials. Importantly, small claims courts—state-level forums with limited monetary jurisdiction and no subject-matter authority over federal contract issues—have no power to adjudicate disputes arising from federal procurement contracts.
Practical Steps
First, review your subcontract for dispute resolution clauses, notice requirements, and deadlines; many require written notice of nonpayment within strict timeframes (e.g., 30 days). Next, determine whether your work falls under a covered federal construction contract — if so, preserve Miller Act rights by sending a written notice to the prime contractor and surety within 90 days of last work (40 U.S.C. § 3133(b)(2)). File suit in the appropriate U.S. district court within one year. If your claim is against the prime contractor alone (non-Miller Act context), pursue state court breach of contract litigation — but note that federal question or diversity jurisdiction may apply, potentially removing the case to federal district court. Do not file in small claims court: it lacks subject-matter jurisdiction over federal contract-related claims and cannot enforce Miller Act or CDA rights. Consult a federal procurement attorney before missing statutory deadlines.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-10-18.