MI SB1319

Increases performance bond and payment bond requirements from 25% to 100% of contract amount for public construction projects exceeding $50,000.

Prohibits payment bonds from containing "pay when paid" clauses that condition subcontractor payment on the contractor receiving payment from the governmental unit.

Establishes that bond providers cannot defend claims by asserting the contractor has not been paid for contracts executed on or after the effective date.

Requires claimants without direct contracts to provide written notice to the principal contractor within 30 days of first furnishing materials or performing labor, and to the governmental unit within 90 days of final delivery or completion.

Entitles prevailing parties in payment bond actions to recover reasonable costs and attorney fees, plus 12% annual interest if the court finds no good faith basis for nonpayment; effective January 1, 2011.