MI SB0451

Establishes payment deadlines requiring owners to pay contractors within 30 days after the billing period ends and contractors to pay subcontractors and suppliers within 7 calendar days of receiving payment from the owner.

Mandates all construction contracts include interest clauses requiring 12% annual interest on wrongfully withheld payments, with interest compounding every 30 days if unpaid.

Limits retainage (money withheld from payments) to 10% of total contract value until 50% of work is completed, then 0% retainage thereafter, with all retainage released at final payment.

Declares void and unenforceable contract provisions that require contractors to assume owner nonpayment risk, waive litigation rights, or depend on owner's credit rather than the contractor's surety bonds.

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