Mich. Comp. Laws » Michigan Compiled Laws / Chapter 570 / Act 259 of 1931
Michigan Compiled Laws

Mich. Comp. Laws § 570.151 (2026)

Building contract fund; status as a trust fund.

✓ current as of July 2026
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BUILDING CONTRACT FUND


Act 259 of 1931


570.151 Building contract fund; status as a trust fund.

Sec. 1.

    In the building construction industry, the building contract fund paid by any person to a contractor, or by such person or contractor to a subcontractor, shall be considered by this act to be a trust fund, for the benefit of the person making the payment, contractors, laborers, subcontractors or materialmen, and the contractor or subcontractor shall be considered the trustee of all funds so paid to him for building construction purposes.

History: 1931, Act 259, Eff. Sept. 18, 1931 ;-- CL 1948, 570.151 ;-- Am. 1966, Act 104, Eff. Oct. 1, 1966

Compiler's Notes:

    For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

Notes of Decisions
Cited in 115 cases (11 in the last 5 years), 1966–2025 · leading case: Cappella v. Little (In Re Little), 163 B.R. 497 (Bankr. E.D. Mich. 1994).
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Cappella v. Little (In Re Little), 163 B.R. 497 (Bankr. E.D. Mich. 1994). · cites it 10× “The Plaintiff argued that by virtue of Mich.Comp.Laws § 570.151, 2 the Debtor was a trustee of the funds advanced to him.”
BC Tile & Marble Co. v. Multi Bldg. Co., 794 N.W.2d 76 (Mich. Ct. App. 2010). · cites it 3× “The trial court responded in a written opinion and order, relying on this Court’s decision in James Lumber Co, Inc v J & S Constr, Inc 2 that a corporate principal “could not be *582 held personally liable under MCL 570.151 et seq., without proof of knowledge or approval of the…”
DiPonio Constr. Co. v. Rosati Masonry Co., 631 N.W.2d 59 (Mich. Ct. App. 2001). · cites it 3× “In this civil action brought under the Michigan builders’ trust fund act, MCL 570.151 et seq., plaintiff appeals as of right from the trial court’s order granting defendants’ motion for summary disposition under MCR 2.”
Shafer Redi-Mix, Inc. v. Craft, 414 B.R. 165 (W.D. Mich. 2009). · cites it 6× “-Mix alleged that Craft had subcontracted work to Shafer Redi-Mix, that Craft had been paid by his clients for the work that Shafer Redi-Mix performed, and that “[t]he monies collected pursuant to the construction and service contracts by the Defendant are construction funds and…”
Au Bon Pain Corp. v. Artect, Inc., Douglas Kahn & Max Gordon, 653 F.2d 61 (2d Cir. 1981). · cites it 2× “Mich.Comp.Laws § 570.151 (1970). The contractor is considered the trustee of the fund.”
Nat'l Bank v. Eames & Brown, Inc., 242 N.W.2d 412 (Mich. 1976). · cites it 5× “Westinghouse Electric Corporation (Westinghouse), a subcontractor and materialman to Continental, claims full rights to such funds pursuant to MCLA 570.151 et seq.; MSA 26.331 et seq. (the Act).”
Livonia Bldg. Materials Co. v. Harrison Constr. Co., 742 N.W.2d 140 (Mich. Ct. App. 2007). · cites it 3× “Penner, in this claim involving the Michigan builders’ trust fund act (MBTFA), MCL 570.151 el seq. Penner cross-appeals, and Bell separately appeals, the same order.”
Brooks Williamson & Assocs., Inc. v. Mayflower Constr. Co., 863 N.W.2d 333 (Mich. Ct. App. 2014). · cites it 3× “On July 10, 2012, plaintiff filed the complaint in the instant case, alleging claims regarding (1) breach of contract; (2) an open account/account stated; (3) unjust enrichment; (4) quantum meruit; (5) a violation of the building contract fund act, MCL 570.151 et seq.; (6)…”
In Re Gerald JOHNSON, Bankrupt, CARLISLE CASHWAY, INC., Plaintiff-Appellant, v. Gerald JOHNSON, Defendant-Appellee, 691 F.2d 249 (6th Cir. 1982). · cites it 2× “Mich.Comp. Laws Ann. § 570.151. 3 The contractor or subcontractor receiving the payments is the “trustee”.”
Accu-Tech Corp. v. Jackson, 352 F. Supp. 2d 831 (E.D. Mich. 2005). · cites it 6× “Laws §§ 570.151 et seq. (“MBTFA”). Because the MBTFA can apply here and for the reasons stated below, the Court DENIES Defendant’s motion.”
Operating Engineers Local 324 Health Care Plan v. G & W Constr. Co., 783 F.3d 1045 (6th Cir. 2015). “Count III alleged that Nollar breached "his fiduciary duty under the Michigan Building Contract Fund Act, Mich. Comp. Laws § 570.151 . The Funds sought declaratory relief, an audit for the period “from January 2007,” payment for all amounts the audit showed due and owing to the…”
Adell v. John Richards Homes Bldg. Co. (In Re John Richards Homes Bldg. Co.), 312 B.R. 849 (E.D. Mich. 2004). · cites it 4× “at 10; Mich. Comp. Laws § 570.151 . 3 Mr. Adell therefore concludes that the $133,000.”
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