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

Mich. Comp. Laws § 129.206 (2026)

Public works, contractor's bond; definitions.

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


Act 213 of 1963


129.206 Public works, contractor's bond; definitions.

Sec. 6.

    A "claimant" means a person having furnished labor, material, or both, used or reasonably required for use in the performance of the contract. "Labor and material" includes that part of water, gas, power, light, heat, oil, gasoline, telephone service or rental of equipment directly applicable to the contract.

History: 1963, Act 213, Eff. Sept. 6, 1963

Notes of Decisions
Cited in 14 cases, 1975–2016 · 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 12× “203 provides: The payment bond shall be in an amount fixed by the governmental unit but not less than 25% of the contract amount solely for the protection of claimants, as defined in [MCL 129.206], supplying labor or materials to the principal contractor or his subcontractors in…”
Kammer Asphalt Paving Co. v. East China Twp. Schs., 504 N.W.2d 635 (Mich. 1993). · cites it 2× “2321(3), however, mandates that payment bonds need only be posted "in an amount fixed by the governmental unit but not less than twenty-five percent of the contract amount.”
Morris Pumps v. Centerline Piping, Inc., 729 N.W.2d 898 (Mich. Ct. App. 2007). “203; MCL 129.206; see also W T Andrew Co, Inc v Mid-State Surety Corp, 450 Mich 655 , 659; 545 NW2d 351 (1996).”
Royalite Co. v. Fed. Ins., 457 N.W.2d 96 (Mich. Ct. App. 1990). · cites it 4× “MCL 129.206; MSA 5.2321(6). It is also undisputed that plaintiff did not have a direct contractual relationship with the principal contractor.”
WT ANDREW Co. v. Mid-State Sur. Corp., 545 N.W.2d 351 (Mich. 1996). · cites it 2× “Under the language of this bond, plaintiff could not meet the definition of a claimant because it never entered into a direct contract with the principal, Shmina. The only contract that plaintiff had was with Marino, a subcontractor.”
Trs. for Michigan Laborers' Health Care Fund v. Warranty Builders, Inc., 921 F. Supp. 471 (E.D. Mich. 1996). · cites it 2× “§ 129.206. This does not preclude the inclusion as compensation of employer contributions to a fringe benefits fund as required under the laborers’ collective bargaining agreement.”
Thomas Indus., Inc v. C & L Elec., Inc, 550 N.W.2d 558 (Mich. Ct. App. 1996). “Section 7 of the act specifies the procedure by which a claimant not having a direct contractual relationship with the principal contractor may perfect a claim against the payment bond: A claimant who has furnished labor or material in the prosecution of the work provided for in…”
Leonard C. Carnaghi, Inc. v. Amwest Sur. Ins. Co., 617 N.W.2d 49 (Mich. Ct. App. 2000). “” MCL 129.206; MSA 5.2321(6). As noted by the Court in W T Andrew, supra, p 659, the Legislature adopted MCL 129.”
WT Andrew Co. v. Mid-State Sur. Corp., 450 Mich. 655 (Mich. 1996). · cites it 2× “Under the language of this bond, plaintiff could not meet the definition of a claimant because it never entered into a direct contract with the principal, Shmina. The only contract that plaintiff had was with Marino, a subcontractor.”
W T Andrew Co. v. Mid-State Sur. Corp., 529 N.W.2d 658 (Mich. Ct. App. 1995). · cites it 2× “Further, MCL 129.206; MSA 5.2321(6) defines a claimant as "a person having furnished labor, material, or both, used or reasonably required for use in the performance of the contract.”
Hub Elec. Co. v. Aetna Cas. & Sur. Co., 400 F. Supp. 77 (E.D. Mich. 1975). “§ 129.206), and if so, whether plaintiff gave the proper statutory notice to defendant as is required by Section 7 (M.”
Trs. for Michigan Laborers' Health Care Fund v. Seaboard Sur. Co., 137 F.3d 427 (6th Cir. 1998). “The Public Works Act defines a “claimant” in the following terms: *430 Mich. Comp. Laws § 129.206 . Seaboard contends that, given this definition, trust funds seeking unpaid fringe benefits are simply not claimants because they did not provide labor or materials to the project.”
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