Mich. Comp. Laws » Michigan Compiled Laws / Chapter 129 / Act 213 of 1963
Michigan Compiled Laws

Mich. Comp. Laws § 129.202 (2026)

Performance bond; amount; condition; purpose.

✓ current as of July 2026
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CONTRACTOR'S BOND FOR PUBLIC BUILDINGS OR WORKS


Act 213 of 1963


129.202 Performance bond; amount; condition; purpose.

Sec. 2.

    The performance bond shall be in an amount fixed by the governmental unit but not less than 25% of the contract amount, conditioned upon the faithful performance of the contract in accordance with the plans, specifications and terms thereof. The bond shall be solely for the protection of the governmental unit awarding the contract.

History: 1963, Act 213, Eff. Sept. 6, 1963 ;-- Am. 1972, Act 351, Imd. Eff. Jan. 9, 1973

Notes of Decisions
Cited in 7 cases, 1978–2016 · leading case: Wyandotte Elec. Supply Co. v. Elec. Tech. Sys., Inc., 881 N.W.2d 95 (Mich. 2016).
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Wyandotte Elec. Supply Co. v. Elec. Tech. Sys., Inc., 881 N.W.2d 95 (Mich. 2016). · cites it 2× “] See also MCL 129.202. As with MCL 129.201, the phrase “the contract” in MCL 129.”
Kammer Asphalt Paving Co. v. East China Twp. Schs., 504 N.W.2d 635 (Mich. 1993). · cites it 2× “The public works act explicitly states the duties imposed on a government unit: MCL 129.202; MSA 5.2321(2), "The performance bond shall be in an amount fixed by the government unit.”
WT ANDREW Co. v. Mid-State Sur. Corp., 545 N.W.2d 351 (Mich. 1996). · cites it 2× “] MCL 129.202; MSA 5.2321(2) and MCL 129.203; MSA 5.”
Northline Excavating, Inc. v. Livingston Cnty., 839 N.W.2d 693 (Mich. Ct. App. 2013). “MCL 129.202, which explains the required performance bond, provides: The performance bond shall be in an amount fixed by the governmental unit but not less than 25% of the contract amount, conditioned upon the faithful performance of the contract in accordance with the plans,…”
In RE v. Pangori & Sons, Inc., 53 B.R. 711 (Bankr. E.D. Mich. 1985). · cites it 2× “Instead, it argues that upon Pangori’s failure to pay its laborers and materialmen, the city had a right to withhold the contract payments for their payment; upon Continental’s satisfaction of these claims through the payment bond, it became subrogated to the retainage.”
Chris Nelson & Son, Inc. v. Atlas Concrete Pipe, Inc., 269 N.W.2d 295 (Mich. Ct. App. 1978). “Further, we find the assignment was not an improper partial assignment of a chose in action or an assignment of a nonexistent cause of action.”
WT Andrew Co. v. Mid-State Sur. Corp., 450 Mich. 655 (Mich. 1996). · cites it 2× “] MCL 129.202; MSA 5.2321(2) and MCL 129.203; MSA 5.”
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