On April 17, 2026, the Michigan Court of Appeals issued its unpublished per curiam opinion in Pearson Construction Company, Inc v The Dailey Company and High Top Buds, LLC, No. 369918 (Mich Ct App April 17, 2026) (link here), affirming an Oakland Circuit Court judgment of more than $1 million against a carpentry subcontractor.
The decision is a useful reminder that a property owner who is not a signatory to a subcontract may still enforce that subcontract as a third-party beneficiary under MCL 600.1405, and that a contractor who agrees to a pre-award scope form cannot later rely on prior bid revisions to rewrite the deal.
Read moreMichigan's public works bond statute (MCL 129.201, et seq) requires that contractors furnish a payment and performance bond for projects over $50,000. The bond must be executed by a surety authorized to do business in Michigan. Many contracts also require the surety to be listed in Treasury Circular 570. In 1993, the Michigan Supreme Court held in Kammer Asphalt Paving v East China Twp. that local governments contracting for improvements have a duty to verify the validity of bonds furnished by contractors [1].
So if you receive a contractor's payment and performance bond, how do you know whether it complies with these requirements? How can you check on a bonding company whose name doesn't sound familiar? How you verify the financial strength of a surety?
There are 3 ways to verify payment and performance bonds and the surety named on the bonds.
Read moreThe three-step process for discharging an old expired construction lien in Michigan.
Read moreSince the COVID-19 pandemic, subcontractors and suppliers are more concerned than ever about getting paid for work performed. We answer the most frequently asked questions about Michigan’s Construction Lien Act.
Read moreThe process for bonding off a construction lien in Michigan generally involves posting a surety bond for twice the lien amount with the county clerk where the property is located. Cash bonds are permitted, but not common. Once a bond is submitted, and no objections are received, the county clerk will issue a certificate vacating he lien which is then recorded with the register of deeds. The whole process takes about 4-5 weeks.
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