Need a Commercial Services Contract in Michigan? AroundWire Can Help

In Michigan, contracts for commercial services—spanning fields such as janitorial, facility management, maintenance, and related business support—are typically governed by a combination of state procurement statutes and local ordinances. Key contract features include clear scopes of work, defined deliverables, and measurable performance standards. Michigan law requires that service providers hold appropriate business licenses, and certain trades (e.g., electrical, plumbing, HVAC) may require state-issued certifications. Prevailing wage requirements may apply for contracts involving public entities or publicly funded projects. Insurance obligations are stringent: contractors are generally required to maintain commercial general liability, workers’ compensation, and, where applicable, professional liability insurance, with minimum coverage limits specified in the contract. Indemnification clauses are common, often obligating the service provider to hold the contracting entity harmless from third-party claims. Payment terms typically range from net 30 to net 45 days, with prompt payment statutes applying to public contracts. Michigan contracts frequently include detailed provisions for dispute resolution, with a preference for negotiation or mediation before litigation. The state’s Elliott-Larsen Civil Rights Act and Persons with Disabilities Civil Rights Act require non-discrimination clauses in most public and many private contracts. Risk factors include potential for liability in workplace safety, environmental compliance, and data security, depending on the service. Overall, Michigan contracting norms emphasize transparency, legal compliance, and risk mitigation for both parties.