Under MCL 570.1113(3), the general contractor must pay subcontractors within 10 days after receiving payment from the owner, or within 40 days after the sub’s invoice if the owner has not paid, subject to good-faith disputes. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.

Michigan does not cap retainage by statute on private construction; retainage is negotiable. On public works under the Public Contract Statutes, retention is commonly 10% reduced at 50% completion if progress is satisfactory. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.

While Michigan has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check Michigan Compiled Laws Chapter 570 (Michigan Construction Law) and the Construction Lien Act, MCL 570.1101 et seq.; Prompt Pay at MCL 570.1101(2) et seq. (within Construction Lien Act) for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.

Michigan does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project, required amounts, and date. Conditional waivers are best practice until payment clears to preserve lien rights under MCL 570.1101 et seq. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.

Michigan under MCL 691.1322 (Construction Lien Act anti-indemnification) voids provisions requiring a subcontractor to indemnify the owner or GC for their sole negligence or willful misconduct. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.

Michigan requires recording a Claim of Lien within 90 days after the last work or materials were furnished, followed by foreclosure within 1 year of recording. Michigan requires a Designated Exhibitor’s Notice of Furnishing to be served on the owner and GC within 30 days of first furnishing labor or materials to preserve lien rights. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.