MI SB1020

Requires owner-to-contractor construction contracts to include a 30-day payment clause, proof of sufficient funds, and 12% annual interest on wrongfully withheld amounts that compounds monthly.

Mandates contractor-to-subcontractor/supplier contracts include a 7-day payment clause and 12% annual interest on late payments, with disputed amounts placed in interest-bearing escrow accounts after 30 days of dispute.

Prohibits owners from retaining percentages of progress payments for satisfactory work and voids contract provisions that require contractors to assume owner nonpayment risk, waive litigation rights, or submit disputes outside Michigan.

Applies only to private commercial construction projects (apartments, offices, hotels, retail, industrial, mixed-use buildings) and excludes public works and residential dwellings of fewer than 7 units.

Allows the substantially prevailing party in payment disputes to recover reasonable attorney fees, arbitration costs, and expert witness expenses from the losing party.