GC Laws — Michigan contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - Section 2401 defines the regulated residential activities and structure types; it does not supply a statewide rule about every commercial trade. - Section 2403 provides specific exemptions, including work solely for a licensed builder/M&A contractor and certain owner/trade work. The under-$600 exemption cannot be used to split a larger operation or evade the Act. - For work requiring Article 24 licensure, a compensation action requires alleging and proving licensure during performance; section 2412 also restricts imposing a real-property lien without that licensure. [ ] Mechanic's liens - Subject to sections 108/108a, subs and suppliers give notice of furnishing within 20 days of first labor/materials to the statutory recipients. Direct owner/lessee contractors do not need that notice. Late notice has the limited effects stated in subsections (5)-(6), rather than automatically destroying every sub/supplier lien. - Record the lien within 90 days after the claimant’s last contractual furnishing in each applicable county. Serve the recorded lien and applicable proof of notice on the statutory recipient within 15 days after recording. - Commence enforcement no later than one year after lien recording, and record lis pendens when bringing the foreclosure action. [ ] Retainage - Coverage and excluded agencies are specified in section 1561. - An agency may retain up to 10% of work-in-place through 50% completion. Thereafter it may retain up to 10% of further work only for unsatisfactory progress or another specific performance-related cause. - Retainage and interest generally release with final progress payment, subject to section 4(7)-(8). After 94% work-in-place, the original contractor may obtain release by furnishing the prescribed acceptable irrevocable letter of credit. [ ] Prompt payment - Section 1561 establishes the contract threshold, payment-count condition and excluded public agencies. - Pay a requested progress payment by the later of 30 days after architect/engineer certification that the covered work is in place or 15 days after receipt of the federal/state funds when funding comes from those sources. - Processing may await prior-sequence work required by the contract; if payment is late, the designated requester may include reasonable interest in the next payment request. [ ] Prevailing wage - The Act defines state projects, construction mechanics, public/private contracting agents and covered energy facilities in section 1101. - Covered bid contracts must require local prevailing wages and fringes. The Act exempts contracts containing the specified federal Davis-Bacon rates or matching locally bargained wage schedules; covered contractors/subcontractors must pay contract-required rates. - Contractors need state-project registration to bid or perform; a listed or engaged subcontractor also needs it. Bids include registration copies for the contractor and subcontractors already selected. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.