Need a Plumbing Contract in Michigan? AroundWire Can Help

In Michigan, plumbing service contracts typically require all contractors to be licensed by the Michigan Department of Licensing and Regulatory Affairs (LARA), with master or journeyman plumber credentials as appropriate. Contracts must clearly define scope of work, materials, timelines, and pricing, and are expected to comply with the Michigan Plumbing Code and local municipal ordinances. Contractors are generally obligated to carry liability insurance (often a minimum of $1 million) and workers’ compensation coverage if employing others. Performance and payment bonds may be required, especially for public or larger private projects. The Michigan Construction Lien Act governs payment terms, with “pay-when-paid” clauses common, but prompt payment statutes may apply, particularly on public contracts, requiring payment within 30 days of invoice approval. Risk allocation is typically addressed through clear indemnification clauses and warranty terms (often one year for workmanship). Dispute resolution tends to favor mediation or arbitration before litigation, as encouraged by local contracting norms. Contracts must also address permitting responsibilities, inspection scheduling, and adherence to prevailing wage requirements on public projects. Failure to meet licensing or code requirements can result in contract voidance or penalties, making compliance a critical risk factor in Michigan plumbing contracts.