MI HB6174

Owner-to-contractor payment must occur within 30 days after the end of the billing period, with 12% annual interest on wrongfully withheld amounts that compounds monthly.

Contractor-to-subcontractor and supplier payments must occur within 7 calendar days of the contractor receiving payment, also subject to 12% annual interest on wrongfully withheld amounts.

Owners and contractors are prohibited from retaining percentages of progress payments for satisfactory performance, except to hold disputed amounts in an interest-bearing escrow account pending resolution.

Voids contract provisions that require contractors to assume owner nonpayment risk, waive right to litigation, or waive protections under this act.

Applies only to private commercial construction projects; excludes public works contracts and residential properties with fewer than 7 units.