Advocacy Update

Forrest WallWritten by Forrest Wall, CAE, Staff Vice President and Industry Relations

Prompt Payment Legislation Introduced

Legislation requiring prompt payment for labor, materials and services in private construction contracts has been proposed in the Michigan Senate. Senate Bill 1121 was introduced at the end of September by Sen. Rick Jones (R- 24th District) and Sen. Curtis Hertel Jr. (D-23rd District). While the bill exempts single family residential and attached residential of less than 7 units, apartment buildings 7 units and over are included with all other types of construction. The legislation mandates that construction contracts between an owner and general contractor include a clause requiring payment for satisfactory performance within 30 days from the end of the billing period (defined as the payment cycle agreed to by both parties, or, if no period is specified then the calendar month in which the work is performed). The bill also mandates a contract clause calling for 12 percent per annum interest on wrongfully withheld amounts due to the contractor. Further, the legislation stipulates a 7 calendar day payment clause in contractors’ contracts with subcontractors and suppliers, with the same 12% interest provision. Finally, the proposed legislation lays out a dispute notification and resolution process. SB 1121 has been referred to the Senate Commerce Committee for consideration.

AAM-PAC’s Work Does Not End On November 6

Election Day is finally here! With it will come an end to all the commercials, signs, and robocalls. But for AAM-PAC, the work never ends. Our efforts to support elected officials who understand the important role of rental housing in Michigan’s economy continues after all the votes have been counted. And, as the drumbeat for rent control grows – both here and in markets across the country – the role of our Association to prevent a change to our state law has never been more important. This and other important rental property issues now intersect with a large group of new state legislators who will take their respective seats in 2019. So, if you have not yet made your contribution to AAM-PAC, it is not too late! Remember, AAM-PAC contributions must be made via personal, partnership, LLP, or LLC check or credit cards. Please call me at 248-862-1004 to make your contribution today!


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