On March 24, 2023, Governor Whitmer signed into law bills repealing Michigan’s “right-to-work” law and reinstating the prevailing wage statute, the latter of which had been repealed in 2018. The prevailing wage statute will mandate higher wages and benefits on state-funded buildings, schools, public works projects, roads and bridges. These new laws will taken effect in
Michigan Construction Law Update
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Michigan Governor Reinstates Prevailing Wage Requirement for DTMB Projects
On October 7, 2021, Governor Gretchen Whitmer announced that she’s signed an executive directive instructing the Michigan Department of Technology Management and Budget (DTMB) to require contractors and subcontractors to pay prevailing wages for construction projects in Michigan. The prevailing wage policy will only apply to projects bid out by the DTMB. Michigan’s Prevailing Wage Act…
New Bill Would Require Builders to Present License When Recording Construction Lien
On April 20, 2021, Rep. Tommy Brann (R. Wyoming) introduced a new bill, which would require lien claimants to present their contractor’s license and drivers license, or attach a copy of them, when recording a construction lien under the Michigan Construction Lien Act. Contractors who violate this requirement would be guilty of a misdemeanor (up…
How to Discharge an Old Construction Lien in Michigan
In Michigan, a construction lien must be recorded within 90 days after the lien claimant last furnished labor or materials to a project. And a court action to enforce a construction lien must be started within one year of recording. But what happens after a year if the lien claimant takes no action to enforce…
How to Bond Off a Construction Lien in Michigan
The process for bonding off a construction lien in Michigan generally involves posting a surety bond for twice the lien amount with the county clerk where the property is located. Cash bonds are permitted, but not common. Once a bond is submitted, and no objections are received, the county clerk will issue a certificate vacating…
Michigan Legislature Renews Effort to Abolish Prevailing Wage
On January 18, 2017, Senators Peter MacGregor, Dave Hildenbrand, and Arlan Meekhof, introduced S.B. 0003, which would repeal Michigan’s Prevailing Wage statute (PA 166 of 1965; MCL 408.551, et seq) in its entirety. The proposed legislation also includes a nominal appropriation to make it more difficult to challenge the repeal if enacted.We’ll continue…
New Skilled Trades Regulation Act Impacts Section 114 of Michigan Construction Lien Act
During the recent lame duck session in December, the Michigan Legislature passed a series of bills aimed at consolidating the licensing and regulation of skilled trades, including residential builders, electricians, plumbing and mechanical contractors. All of these trades are now regulated under the “Skilled Trades Regulation Act.” S.B. 963 repealed the Electrical Administrative Act, the Forbes…
FAR Amendments Designed to Speed Up Payment to Subcontractors
On November 25, 2013, the DOD, GSA, and NASA issued a final rule amending the Federal Acquisition Regulations (FAR) to incorporate a new clause to provide accelerated payments to small business subcontractors.The new clause [FAR 52.232-40] requires prime contractors, upon receipt of accelerated payment from the Government, to make accelerated payment to small business…
Sixth Circuit Upholds Michigan Law Limiting Project Labor Agreements
On September 6, 2013, the Sixth Circuit Court of Appeals voted 2-1 to uphold the “Michigan Fair and Open Competition in Government Construction Act” (PA 98 of 2011). The act prohibits a city, village, township or other governmental unit from awarding a public construction project, grant, tax abatement or tax credit based on whether or…
New Law Expands Protection of Michigan's Anti-Indemnification Law
The final days of 2012 saw a flurry of activity by the Michigan Legislature. Among the new legislation passed during an historic lame duck session was a significant legislative victory for contractors and design professionals. Public Act 468 of 2012, which was sponsored by Rep. Kurt Heise of Plymough (HB 5466), clarifies and…