MICHIGAN

 

About the Author  |  This Book's Table of Contents  |  Order this Book  |  Seminars  |  Sponsors  |  Return to Map

MICHIGAN CONSTRUCTION LAW
TABLE OF CONTENTS
 

 

Acknowledgments........................................................................ xvii

About the Author............................................................................. ix

 

CHAPTER 1

LICENSING

A.    RESIDENTIAL CONSTRUCTION LICENSE. 1

1.     Who is Required to Have a Residential

        Construction License. 1

2.     How to Obtain a Residential Construction License. 3

3.     Consequences for Violations of the Residential

        Builders Act 3

B.     ELECTRICAL LICENSE. 4

1.     Who is Required to Have an Electrical License. 4

2.     How to Obtain an Electrical License. 5

3.     Consequences for Violations of the Electrical

        Administrative Act 6

C.     PLUMBING LICENSE. 6

1.     Who is Required to Have a Plumbing License. 6

2.     How to Obtain a Plumbing License. 7

3.     Consequences for Violations of the State

        Plumbing Act 8

D.    ACTIONS FOR COLLECTION OF COMPENSATION.. 8

 

CHAPTER 2

THE ARCHITECT/ENGINEER

A.    STATE LAW GOVERNING THE PRACTICE OF ARCHITECTURE AND ENGINEERING.. 13

1.     Statutory Regulation of Architects. 13

2.     Statutory Regulation of Engineers. 16

3.     Exemptions. 18

4.     Penalties for Violation. 19

5.     Associations of Architects and/or Engineers. 20

B.     TYPES OF OWNER-ARCHITECT/ENGINEER

        AGREEMENTS. 20

1.     AIA B101-2007. 20

2.     AIA B103-2007. 21

3.     AIA B104-2007. 21

4.     AIA B181-1994. 22

5.     AIA B188-1996. 22

6.     B214-2007. 22

C.     CLAUSES FOR ARCHITECT’S CONTRACTS. 22

1.     Scope of Services. 23

2.     Inspection. 23

3.     Warranties/Guarantees. 23

4.     Submittals and Approvals. 23

5.     Compensation. 24

6.     Ownership of Plans. 24

7.     Mediation. 25

8.     Arbitration. 25

9.     Termination or Suspension. 25

10.    Professional Liability Insurance. 25

11.    Assignment 25

D.    ARCHITECT-CONSULTANT AGREEMENTS. 26

E.     ARCHITECT RESPONSIBILITIES. 26

1.     Design. 26

2.     Bidding and Negotiation. 27

3.     Construction. 27

4.     Inspection. 29

5.     The Architect as Judge of Performance. 29

6.     Review of Applications for Payment 30

7.     Closing the Project 30

F.     ARCHITECT/ENGINEER LIABILITY.. 32

1.     Liability to Owner 32

2.     Liability to Contractor and Subcontractors. 33

3.     Liability to Workers, Visitors, and Users. 33

4.     Statute of Limitations/repose. 34

 

CHAPTER 3

BIDS AND BIDDING

A.    PUBLIC PROJECTS. 37

1.     What Are Public Projects?. 37

2.     Negotiated Procurement 38

3.     Bidding Requirements and Bidding Statutes. 42

4.     Bidding and the Bidding Process. 70

5.     Bidders. 88

6.     Protesting the Award of Public Contracts. 93

7.     Bid Bonds. 95

8.     Bid Cancellation and/or Re-Solicitation. 98

9.     Re-Bidding abandoned contracts. 101

B.     PRIVATE PROJECTS. 101

1.     Elements Common to both Private and Public Projects. 102

2.     Special Bidding Rules. 102

C.     SUBCONTRACTS FOR PUBLIC AND PRIVATE

        PROJECTS. 103

 

1.     Procedures. 103

2.     Subcontractor’s Obligation to Stand by its Bid. 103

D.    TYPES OF BIDS. 104

 

CHAPTER 4

CONSTRUCTION CONTRACT NEGOTIATION AND FORMATION

A.    PARTIES INVOLVED.. 111

B.     FORMING THE CONTRACT. 112

1.     Types of Contracts Available. 112

2.     Offer and Acceptance. 112

3.     “Competent” Parties. 123

4.     Consideration. 123

C.     CONTRACTS FOR CONSTRUCTION SERVICES

        IN GENERAL. 125

1.     Common AIA Owner-Contractor Agreements and Forms. 126

2.     Important Clauses in the Owner-Contractor Agreements. 127

D.    DISAVOWING THE CONTRACT. 137

1.     Mistakes. 137

2.     Fraud. 137

3.     Misrepresentation. 138

4.     Duress. 138

 

CHAPTER 5

CLAIMS

A.    PRIME CONTRACTOR’S CLAIMS. 141

1.     Delays and Disruptions Caused by Owner 141

2.     Unit Price Claims. 146

3.     Extra Work. 148

4.     Change Orders. 151

5.     Other Contractor Claims. 155

6.     Recovery From Parties Other Than Owner 163

7.     Statutes of Limitations. 164

8.     Performance without Formal Contract 169

9.     Acceleration. 171

10.   Late Payments. 172

11.   Termination. 173

B.     OWNER’S CLAIMS AGAINST PRIME CONTRACTOR

AND SURETIES. 173

1.     Delay. 173

2.     Defective Work. 178

3.     Liquidated Damages. 180

4.     Warranties and Guarantees. 182

5.     No Appropriate License. 183

 

C.     RESPONSIBILITIES AND WARRANTIES OF

        AN ARCHITECT. 190

1.     Malpractice. 190

2.     Third-Party Tort Claims. 192

D.    SUBCONTRACTOR CLAIMS. 193

1.     Privity of Contract 193

2.     Subcontractor Claims Against The Prime Contractor 193

3.     Labor and Materials Bonds. 196

 

CHAPTER 6

BUILDING CODES, STANDARDS AND PERMITS

A.    INTRODUCTION.. 205

B.     PURPOSE. 205

C.     APPLICABLE CODES. 205

1.     Commercial Properties. 205

2.     Residential Properties. 206

D.    BUILDING PERMITS. 206

1.     When is a Permit Required?. 206

2.     What is the Process to Obtain a Permit 207

E.     BUILDING INSPECTION AND CERTIFICATE

OF OCCUPANCY.. 207

F.     PENALTIES FOR VIOLATION.. 208

G.    CONCLUSION.. 208

 

CHAPTER 7

MICHIGAN CONSTRUCTION LIEN LAW

A.    PUBLIC AND PRIVATE CONSTRUCTION LIENS. 209

1.     The Statute. 209

2.     Definitional Background. 209

3.     Definitions. 212

4.     Notice of Commencement 216

5.     Notice of Furnishing (Required of Subcontractors

        Suppliers and Laborers) 219

6.     Claim of Lien. 221

7.     Effect of Filing. 222

8.     Sworn Statements/Waivers of Lien. 222

9.     The Lien’s Duration. 227

10.   Lien Enforcement 230

11.   Lien Termination. 231

12.   Homeowner’s construction lien recovery fund. 232

13.   Condominiums. 234

14.   Federal Alternative. 234

15.   Public Projects (Michigan) 235

16.   Michigan State Government Projects. 235

17.   Michigan Department of Transportation Contracts. 237

18.   Building Contract Fund. 238

 

CHAPTER 8

ALTERNATIVE DISPUTE RESOLUTION

A.    MEDIATION VS. ARBITRATION.. 249

1.     Mediation. 249

2.     Arbitration. 249

3.     Advantages of Arbitration. 250

B.     ENFORCEABILITY.. 250

1.     Michigan State Law.. 250

2.     Federal Law.. 250

C.     SCOPE OF ARBITRATION.. 251

 

CHAPTER 9

ENVIRONMENTAL CONCERNS WHICH MAY IMPACT CONSTRUCTION PROJECTS

A.    INTRODUCTION.. 253

B.     LIABILITY OF OWNERS AND OPERATORS FOR CLEANUP OF CONTAMINATED PROPERTY   253

1.     Liability Scheme. 253

2.     Part 201 Liability Exemption. 255

3.     CERCLA Liability Exemption. 256

4.     Additional Obligations of Non-Liable Parties Unde

        Part 201 and CERCLA.. 257

C.     MANAGING HAZARDOUS SUBSTANCES OR

        WASTES ENCOUNTERED DURING DEVELOPMENT/CONSTRUCTION ACTIVITIES. 257

1.     Hazardous Waste Regulation. 258

2.     Regulation of Underground Storage Tanks. 260

3.     Asbestos Concerns and Issues. 261

D.    WATER QUALITY ISSUES. 265

1.     Stormwater 265

2.     Wetland Fill Permits. 266

3.     Additional State Regulatory Requirements. 267

 

CHAPTER 10

EMPLOYEE RELATIONS

A.    LIMITATIONS OF ACTIONS AGAINST EMPLOYERS. 271

1.     Difficulty Defending Suits. 271

2.     Case Law.. 271

3.     Practical Suggestions. 271

B.     EMPLOYMENT LAW POSTERS. 272

1.     Common Problem.. 272

2.     Benefit to Employers. 272

3.     Posting at Corporate Headquarters. 272

4.     Postings Required. 273

C.     PRE-EMPLOYMENT PHYSICALS. 273

1.     Potential for Discrimination Claims. 273

2.     Federal Contracts and Funds. 273

3.     Pre-Employment Physical Illegal 273

D.    IMMIGRATION ACT. 274

1.     Coverage. 274

2.     Procedures. 274

3.     Fines. 274

4.     Discrimination. 275

E.     SEX HARASSMENT. 275

1.     Growing Concerns. 275

2.     “Quid Pro Quo”. 275

3.     “Hostile Work Environment”. 275

4.     Elements of Hostile Environment Case. 276

5.     Some Limitations. 276

6.     Case-by-Case Analysis. 276

7.     Safeguards. 276

8.     Complaint Procedure. 276

9.     Practical Suggestion. 277

F.     OTHER HARASSMENT. 277

G.    DRUG TESTING.. 277

1.     Pre-Employment Testing. 277

2.     Elements Necessary for Successful Pre-Employment

        Drug Testing Policy. 277

3.     Testing Existing Employees. 278

4.     Drug/Alcohol Policy. 278

5.     Reasonable Suspicion Testing. 279

 

 

TOP