Written 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 House of Representatives. 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 private commercial construction projects. 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% 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. House Bill 5375 has been referred to the House Committee on Commerce and Tourism for consideration.
Census Bill Targets Multiunit Residences
A bill to prohibit an owner or operator of a “multiunit residence” from denying access to a federal census employee has been introduced in the Michigan House of Representatives. House Bill 5597 would require the owner or operator to permit the census employee to leave census materials for residents at their doors. However, the legislation would not prohibit the owner/operator from requiring a prior appointment to gain access. A “multiunit residence” would include apartment buildings, dorms, mobile home parks, or an area in which 2 or more single-family dwellings are located on private roadways. The legislation has been referred to the Committee on Government Operations for consideration.
Smoke Alarm Standard Proposed
House Bill 5407 would ban the distribution/sale of smoke alarms powered by replaceable and removeable batteries in Michigan beginning April 1, 2022. The bill further requires that smoke alarms distributed/sold after April 1, 2022 must be powered for not less than 10 years by a nonremovable and nonreplaceable battery or by another power source utilizing new technology. The legislation would not apply to hard-wired or wirelessly linked alarms.