November 22, 2014
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Penalties for using an illegal construction contract in Michigan:
  • Failure to include the notices and disclosures required by the Home Solicitation Sales Act makes the contract unenforceable under Michigan Compiled Laws 445.117. Failure to provide a Notice of Cancellation or the statement required by Michigan Compiled Laws 445.113(1) gives an owner the right to cancel a contract for residential, industrial, commercial or public works construction at any time until three days after the notice and statement have been received.
  • No payment is due until the contract complies with the Home Improvement Finance Act, Michigan Compiled Laws 445.1101 to 445.1209.
  • Michigan Compiled Laws 570.1115 invalidates any clause in a construction contract which would waive lien rights before the work has been done.
  • Michigan Compiled Laws 691.991 voids any attempt in a construction contract to indemnify someone for their own sole negligence.
  • Omission of federal truth in lending disclosures required by 15 United States Code 1638 makes the creditor liable for both the overcharge and the debtor's attorney fees.
  • Omission of disclosures required by 12 Code of Federal Regulations 226.15 extends the right of rescission to three years (rather than three days).
  • Omission of insulation disclosures required by 16 Code of Federal Regulation 460 can result in an $11,000 fine.
The contracts linked below will help Michigan contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Michigan and federal court decisions.

Michigan Construction Contracts Available Now
Title Bias Contract Type Page Length
MI Commercial Construction I Light bias in favor of the contractor. Prime 31
MI Commercial Construction II Light bias in favor of the owner. Prime 13
MI Commercial Repair Neutral. Prime 17
MI Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 28
MI Commercial Subcontract II Light bias in favor of the contractor. Subcontract 13
MI Custom Home I Light bias in favor of the contractor. Prime 19
MI Custom Home II Light bias in favor of the owner. Prime 24
MI Home Improvement I Moderate bias in favor of the contractor. Prime 24
MI Home Improvement II Moderately favors the owner. Prime 28
MI Home Repair I Heavy bias in favor of the contractor. Prime 12
MI Home Repair II Heavy bias in favor of the owner. Prime 18
MI Pool Neutral. Prime 19
MI Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 31
MI Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 12
MI Residential Subcontract II Light bias in favor of the contractor. Subcontract 17
MI Tenant Improvement Neutral Prime 15