Our partners in Lansing, Michigan Legislative Consultants, are well respected and positioned in Lansing to keep BOMA at the top of the game for issues impacting CRE. Working with the GAC, they ensure our voice is heard on important issues that affect members' building and business operations.

BOMA Partner- Rudy Hobbs

Proposed Prompt Pay Act
HB 4837 | SB

MANDATEDS TERMS IN PRIVATE CONTRACTS which will interfere with your rights to control project funds to correct defective or incomplete work.

The contractor is entitled to submit invoice every 30 days, and requires an owner to pay undisputed amounts within 30 days after delivery of invoice. BUT, if you dispute the invoice, you must notify the party in writing with described detail within 10 days of receipt of the invoice.

FURTHER, you will be required to deposit the amount of a disputed withheld payment into a verifiable and federally insured interest-bearing bank account or credit union account created for the subject project AND funds will not be released until settlement, arbitration award, or court order. You will also pay 12% interest on wrongfully disputed funds.

AND you may be subject to attorney fees, arbitration costs, and expert witness costs.

AND to add insult to injury, you will be limited or prohibited from withholding any retainage.