While contractor license bonds are not required at the state level, they may be at the local level, as some Michigan cities and counties do have their own licensing or permitting and bonding rules.
Michigan’s “Little Miller Act” requires performance bonds and payment bonds for state-funded construction projects valued above a certain threshold amount. While private construction projects in Michigan are not subject to the state’s Little Miller Act, private project owners often require performance and payment bonds, particularly for larger projects. Additionally, government project owners require bid bonds when contracts are awarded through competitive bidding. Private project owners may choose to require one as well.
Other construction bonds that may be required by both public and private project owners include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
