LANSING, Mich., June 23, 2023 — State Rep. Jennifer Conlin (D-Ann Arbor Township) introduced House Bill 4837 this week to require prompt pay for construction contractors, sub-contractors and suppliers. Currently, Michigan and all other states require prompt pay on public construction projects. Michigan is, however, one of only 16 states that does not require prompt pay for private construction projects.
“We have done incredible work this year to restore and protect the rights of workers. It’s important that we continue to build upon that success,” Conlin said. “One reason why people are leaving the construction field is that tracking down payments can present so many difficulties. This bill would help more entrepreneurs enter the field and support small businesses and skilled tradespeople.”
House Bill 4837 would require payments within 30 days for accepted work. However, it would continue to allow for the withholding of payment for unsatisfactory work to protect the rights of clients.
The bill will now head to the House Committee on Economic Development and Small Business.