CONTRACTOR'S BOND FOR PUBLIC BUILDINGS OR WORKS
Act 213 of 1963
129.207 Enforcement of claims; notice of supplier to principal contractor or governmental unit; payment to subcontractor.
Sec. 7.
A claimant who has furnished labor or material in the prosecution of the work provided for in such contract in respect of which payment bond is furnished under the provisions of section 3, and who has not been paid in full therefor before the expiration of a period of 90 days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which claim is made, may sue on the payment bond for the amount, or the balance thereof, unpaid at the time of institution of the civil action, prosecute such action to final judgment for the sum justly due him and have execution thereon. A claimant not having a direct contractual relationship with the principal contractor shall not have a right of action upon the payment bond unless (a) he has within 30 days after furnishing the first of such material or performing the first of such labor, served on the principal contractor a written notice, which shall inform the principal of the nature of the materials being furnished or to be furnished, or labor being performed or to be performed and identifying the party contracting for such labor or materials and the site for the performance of such labor or the delivery of such materials, and (b) he has given written notice to the principal contractor and the governmental unit involved within 90 days from the date on which the claimant performed the last of the labor or furnished or supplied the last of the material for which the claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Each notice shall be served by mailing the same by certified mail, postage prepaid, in an envelope addressed to the principal contractor, the governmental unit involved, at any place at which said parties maintain a business or residence. The principal contractor shall not be required to make payment to a subcontractor of sums due from the subcontractor to parties performing labor or furnishing materials or supplies, except upon the receipt of the written orders of such parties to pay to the subcontractor the sums due such parties.
History: 1963, Act 213, Eff. Sept. 6, 1963
Notes of Decisions
Wyandotte Elec. Supply Co. v. Elec. Tech. Sys., Inc., 881 N.W.2d 95 (Mich. 2016).
· cites it 111× “Under MCL 129.207 of the PWBA, a claimant not having a direct contractual relationship with the principal contractor shall not have a right of action upon the payment bond unless (a) the claimant has within 30 days after furnishing the first of such material or performing the…”
Pi-Con, Inc. v. a J Anderson Constr. Co., 458 N.W.2d 639 (Mich. 1990).
· cites it 44× “We hold that, so long as Pi-Con timely sent notice which otherwise complies with the notice requirements of the public works bond act, MCL 129.207; MSA 5.2321(7), and Pi-Con proves by a preponderance of the evidence that Anderson timely received notice, Pi-Con's failure to send…”
Kammer Asphalt Paving Co. v. East China Twp. Schs., 504 N.W.2d 635 (Mich. 1993).
· cites it 4× “" MCL 129.207; MSA 5.2321(7). The public works act does not place an affirmative obligation on a contracting governmental unit to either require or verify a valid payment bond.”
Grand Blanc Cement Prods., Inc. v. Ins. Co. of North Am., 571 N.W.2d 221 (Mich. Ct. App. 1997).
· cites it 8× “We hold, inter alia, that subcontractors or materialmen that have failed to comply with MCL 129.207; MSA 5.2321(7) regarding a prior contract are not barred from protection under the bond act for labor and materials supplied pursuant to a second and indepen *141 dent contract…”
Square D. Env't Corp. v. Aero Mech., Inc., 326 N.W.2d 629 (Mich. Ct. App. 1982).
· cites it 4× “The basis of Square D's claim is MCL 129.207; MSA 5.2321(7), which states: "A claimant not having a direct contractual relationship with the principal contractor shall not have a right of action upon the payment bond unless (a) he has within 30 days after furnishing the first of…”
Elec. Data Sys. Corp. v. Flint Twp., 656 N.W.2d 215 (Mich. Ct. App. 2003).
“There, the Court held that as long as the plaintiff sent timely notice that otherwise complied with the notice requirements of the public works bond act, MCL 129.207, and the plaintiff proved by a preponderance of the evidence that the defendant received timely notice, then the…”
Royalite Co. v. Fed. Ins., 457 N.W.2d 96 (Mich. Ct. App. 1990).
· cites it 4× “Section 7 of the act, MCL 129.207; MSA 5.2321(7), specifies the procedure by which a claimant not having a direct contractual relationship with the primary contractor may perfect a claim against the payment bond: A claimant who has furnished labor or material in the prosecution…”
Thomas Indus., Inc v. C & L Elec., Inc, 550 N.W.2d 558 (Mich. Ct. App. 1996).
· cites it 3× “The trial court held that, under § 7 of the relevant public works construction bond act, MCL 129.207; MSA 5.2321(7), plaintiffs failure to satisfy the statutory notice requirements precluded it from recovering $17,473.”
Pi-Con, Inc v. A. J. Anderson Constr. Co., 425 N.W.2d 563 (Mich. Ct. App. 1988).
· cites it 5× “MCL 129.207; MSA 5.2321(7). Pi-Con alleged that it had furnished labor and materials for the construction project to Brian & Gregory amounting to $25,140.”
Charles W. Anderson Co. v. Argonaut Ins., 233 N.W.2d 691 (Mich. Ct. App. 1975).
· cites it 2× “Summary judgment was entered against the plaintiff for failure to serve the principal contractor with notice of its claim within 30 days of beginning work as required by MCLA 129.207; MSA 5.2321(7), which provides: "* * * A claimant not having a direct contractual relationship…”
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