Be advised that there is a growing trend for local government agencies to utilize construction managers for the oversight of their construction projects. With the insertion of construction managers into the construction chain, many of the rights that contractors have been afforded by Michigan law may be compromised.
Three statutes that are directly affected are the Differing Site Conditions Act (DSC Act); the Public Works Performance and Payment Bond Act (Public Works Bond Act); and the Retainage Act. For further information on how your rights are affected when a governmental agency hires a construction manager click here.
The recent advertisement of a project in west Michigan by F & V Construction Management, Inc. has prompted MITA to remind our members of the added risk that you will be undertaking when bidding on these types of projects.