Michigan prompt payment

Who and what this applies to

Covered written public-agency construction contracts under 1980 PA 524: at least $30,000 and more than three payments. The public-agency definition excludes MDOT, school districts, junior/community colleges, MSHDA and municipal electric utilities/agencies.

Thresholds and scope

Progress-payment deadlines are tied to certification and receipt of government funding.

The rules

• Section 1561 establishes the contract threshold, payment-count condition and excluded public agencies. Source
• 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. Source
• 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. Source

Primary sources

• MCL 125.1561(c), (h)
• MCL 125.1562(3)
• MCL 125.1562(2), (4)

Sources reviewed 2026-09-30. This guide covers the projects and rules stated above.

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