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Construction Law

Michigan Construction Law

A forum for sharing current developments in Michigan construction law.

Post Frequency: 1.1/day

Last Entry: August 20, 2019 at 16:44:00

State of Michigan Updates Construction Lien Guide

Posted on October 15, 2007
The State of Michigan Department of Labor and Economic Growth (DLEG) recently updated its "Consumer's Guide to the Michigan Construction Lien Act and The Homeowner Construction Lien Recovery Fund" (Rev'd July, 2007) to reflect recent amendments to the Michigan Construction Lien Act...

Peter Cavanaugh to Speak on November 14, 2007 to MCA Detroit regarding "Prompt Pay" Legislation

Posted on September 30, 2007
Attorney Peter Cavanaugh will speak to the Mechanical Contractors Association (MCA) of Detroit on November 14, 2007 on the subject of Prompt Pay in Michigan: An Overview of Proposed Changes to Michigan Law.Mr. Cavanaugh will discuss the changes to Michigan law that have been endorsed by AGC of Michigan that would affect payment practices in the construction industry...

ConsensusDOCS Released, Renewed Effort at a Fair Contract Document

Posted on September 30, 2007
On September 28, 2007, 20 leading construction associations, including AGC united to publish a consensus set of contract documents called ConsensusDOCS. Why another set of form documents?There are currently a variety of construction associations that produce standard form construction contracts, including AGC, COAA, EJCDC...

U.S. Bureau of Engraving, Interactive Currency Site

Posted on September 24, 2007
A lawyer who doesn't have a few hobbies would be a boring one indeed. . .As a kid, I was fascinated by coins, and had a pretty extensive "penny collection" before moving on to baseball cards. I haven't kept it up, but the last several years have seen a significant change in U...

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Law Library of Congress, Michigan Legal Links

Posted on September 19, 2007
The Law Library of Congress recently updated its website. The LOC includes the world's largest collection of law books and legal resources. Among its online resources is an excellent Guide to Michigan Legal Resources. For practitioners, the State Bar of Michigan and the Institute for Continuing Legal Education (ICLE) have collaborated to produce Michigan Law Online, which is a free online primary law research service for all Michigan Bar members in good standing...

New Bill Would Boost Set Aside for Disabled Veteran Contractors

Posted on September 11, 2007
On September 6, 2007, Sen. John Pappageorge (R. Troy) introduced S.B. 751, which would amend the Management and Budget Act to increase the goal for contract set asides for disabled veterans.Under the current Act, it is the goal of the Department of Management and Budget (DMB) to award each year at least 3% of its total expenditures for construction, goods, and services to qualified disabled veterans...

New Bill Would Bar (Most) Construction Liens Against Residential Property - Why?

Posted on August 25, 2007
On July 27, 2007, a new bill was introduced by Rep. John Stakoe (R. Highland Twp), which would modify the Michigan Construction Lien Act to bar most claims of lien against Residential Structures by subcontractors, suppliers, and laborers, but not contractors...

When Does Professional Services Corporation Act Apply? ? Michigan Court of Appeals Casts Doubt On Traditional Thinking

Posted on August 08, 2007
By: Frederick F. Butters, FAIA, JD, Shareholder,Keranen & Associates, P.C.On May 31, 2007, the Michigan Court of Appeals issued its final opinion in Miller v Allstate Ins Co, 2007 Mich App LEXIS 1441. In sum, the Court ruled that where a professional services business can be incorporated under the Michigan Professional Services Corporation Act, it must be incorporated under that act...

MDOT Resolves Low Bid Tie With Coin Toss

Posted on July 31, 2007
The Michigan Infrastructure & Transportation Association (MITA) reported this story in its July 27th Weekly Review Newsletter: For what is believed to be only the second time in its history, [the Michigan Department of Transportation] MDOT experienced a low bid tie on a project bid in the July 6th letting...

Construction Lien Act Modified, S.B. 487 Enacted

Posted on June 30, 2007
On June 28, 2007, Michigan's Governor approved S.B. 487, which amends Sections 110 and 115 of the Michigan Construction Lien Act. The new statute, PA 28 of 2007, is effective July 10, 2007BackgroundCurrently, parties involved in a construction project must provide various notices, statements, and claims of liens...

Residential Builders Exempt from Michigan Consumer Protection Act, Michigan Supreme Court Rules

Posted on June 09, 2007
A residential home builder is exempt from the Michigan Consumer Protection Act under MCL 445.904(1)(a) because the general transaction of residential home building, including contracting to perform such a transaction, is "specifically authorized" by the Michigan Occupational Code, MCL 339...

Peter Cavanaugh to Speak June 12, 2007 at MACPA Litigation and Business Valuation Conference

Posted on June 02, 2007
Peter J. Cavanaugh will be a Speaker at the MACPA's June 12, 2007 "Litigation and Business Valuation Conference" at the VisTaTech Center at Schoolcraft College in Livonia, Michigan. Mr. Cavanaugh and Jim Schmid, CPA, CFE, ABV (Grant Thornton, LLP) will speak about "Unraveling the Research Potential of the Web...

Gary Quesada to Speak at MSPE / ACECM 2007 Annual Conference

Posted on May 29, 2007
Gary D. Quesada, Hon. Aff. AIA, J.D., will be speaking as a Member of the PCIA Risk Management Panel Discussion at the MSPE/ACECM 2007 Annual Conference on June 9, 2007 at Boyne Mountain Grand Lodge. The focus of this Conference is "Re-Engineering Michigan's Economy...

Implied Obligations in Michigan Construction Contracts

Posted on May 21, 2007
The May, 2007 Michigan Bar Journal includes an article by William F. Frey entitled "Obligations Implied in Michigan Construction Contracts." Mr. Frey provides a brief overview of Michigan law in the following areas: Owner's Implied Warranty of Plans and Specifications (Spearin Doctrine)Owner's Duty to Share all Material InformationOwner's Duty to Provide Access / Duty to Coordinate / Duty Not to InterfereContractor's Implied Warranty of Fitness for a Particular Purpose of "Habitability"Contractor's Implied Warranty of WorkmanshipWm...

New Bill Would Create Michigan False Claims Act (H.B. 4773)

Posted on May 18, 2007
On May 16, 2007, a new bill was introduced in the Michigan House (H.B. 4773), which would create the Michigan False Claims Act. On first read, it appears that the drafters of H.B. 4773 borrowed heavily from the Federal False Claims Act (31 USC 3729, et seq)...

New Bill Would Modify Recently Amended Construction Lien Act (S.B. 487)

Posted on May 09, 2007
On May 9, 2007, Senators Garcia and Basham introduced a new bill in the Michigan Senate (S.B. 487), which would limit to residential construction the changes made to Sections 110 (lien waivers) and 115 (sworn statements) of the Construction Lien Act by the passage of PA 572 of 2006...

Construction Liens: E. R. Zeiler -- Supreme Court Declines Review

Posted on March 31, 2007
On March 26, 2007, the Michigan Supreme Court DENIED the surety's Application for Leave to Appeal, which leaves standing the Court of Appeals decision reported here on May 28, 2006.Updated case citation:E. R. Zeiler Excavating, Inc. v Valenti Trobec & Chandler, Inc...

Builder's Trust Fund: Update Regarding Personal Liability

Posted on February 05, 2007
The February 2007 Newsletter of the Debtor/Creditor Rights Committee of the Business Law Section of the State Bar of Michigan contains an interesting article concerning personal liability under the Michigan Builder's Trust Fund Act. Thomas R. Morris reports on a preliminary ruling in a case pending before Judge Shefferly in the U...

Construction Liens: E. R. Zeiler Update

Posted on June 10, 2006
Since the first post on the E. Z. Zeiler decision, the surety (NAS Surety Group) has filed an Application for Leave to Appeal with the Michigan Supreme Court. The application was filed on May 30, 2006 (Docket No. 131297).This case has also been assigned the following citation:E...

Construction Liens: Statute of Limitations

Posted on May 28, 2006
Under the Michigan Construction Lien Act, does the time period for bringing an action to enforce a claim of lien differ when the lien has been bonded off?Until recently, the answer was thought to be No.Under Section 117(1) of the CLA, an action to enforce a claim of lien must be brought within one year from the date it was recorded...

Builder's Trust Fund Act: H.B. 5196

Posted on May 06, 2006
On September 21, 2005, a new bill was introduced in the Michigan Legislature, which would expand the scope of the Michigan Builder?s Trust Fund Act (MBTFA) to include public projects. H.B. 5196 would modify Section 1 of the Act (MCL 570.151), which has been construed by Michigan courts for almost 25 years to apply only to private construction projects, not public ones...

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