(1) The construction contract shall designate a person representing the contractor who will submit written requests for progress payments, and a person representing the public agency to whom request for progress payments are to be submitted. The written requests for progress payments shall be submitted to the designated person in a manner and at such times as provided in the construction contract.
  (2) The processing of progress payments by the public agency may be deferred by the public agency until work having a prior sequence, as provided in the contract documents, is in place and is approved.

Terms Used In Michigan Laws 125.1562

  • Architect or professional engineer: means an architect or professional engineer licensed under Act No. See Michigan Laws 125.1561
  • Contract: A legal written agreement that becomes binding when signed.
  • contract: means a written agreement between a contractor and a public agency for the construction, alteration, demolition, or repair of a facility, other than a contract having a dollar value of less than $30,000. See Michigan Laws 125.1561
  • Contract documents: means the construction contract; instructions to bidders; proposal; conditions of the contract; performance bond; labor and material bond; drawings; specifications; all addenda issued before execution of the construction contract and all modifications issued subsequently. See Michigan Laws 125.1561
  • Contractor: means an individual, sole proprietorship, partnership, corporation, or joint venture, that is a party to a construction contract with a public agency. See Michigan Laws 125.1561
  • Facility: means a building, utility, road, street, boulevard, parkway, bridge, ditch, drain, levee, dike, sewer, park, playground, or other structure or work that is paid for with public funds or a special assessment. See Michigan Laws 125.1561
  • person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
  • Progress payment: means a payment by a public agency to a contractor for work in place under the terms of a construction contract. See Michigan Laws 125.1561
  • Public agency: means this state, or a county, city, township, village, assessment district, or other political subdivision, corporation, commission, agency, or authority created by law. See Michigan Laws 125.1561
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
  (3) Each progress payment requested, including reasonable interest if requested under subsection (4), shall be paid within 1 of the following time periods, whichever is later:
  (a) Thirty days after the architect or professional engineer has certified to the public agency that work is in place in the portion of the facility covered by the applicable request for payment in accordance with the contract documents.
  (b) Fifteen days after the public agency has received the funds with which to make the progress payment from a department or agency of the federal or state government, if any funds are to come from either of those sources.
  (4) Upon failure of a public agency to make a timely progress payment pursuant to this section, the person designated to submit requests for progress payments may include reasonable interest on amounts past due in the next request for payment.
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