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CAM’s Michigan Construction Payment Act

A Letter from the CAM Chairman of the Board, Mr. Joseph Fontanesi:

Fellow members, within the next few months, representatives of CAM will have the opportunity to make the case in support of CAM’s Michigan Construction Payment Act (MCPA) before a State Senate subcommittee. CAM’s proposed legislation is intended to become the first prompt pay law for private sector commercial projects in the State of Michigan. Also, if the MCPA becomes law as proposed, it will eliminate the unfair industry practice known as retention or retainage.

Currently, Michigan is one of only a handful of states that does not have a prompt payment act for the private sector construction industry. Additionally, every state in the country, including Michigan, has prompt pay legislation on the books for public sector work. Who has not traveled to major metropolitan cities like Chicago, New York, Dallas, Atlanta or Seattle and marveled at all of the cranes at work and thought, “What If?” All of these great cities are located in states with legislation on the books guaranteeing prompt payment on both public and private projects.

Our country’s free market system compels Michigan to compete against other states for business. In order to successfully convince employers to establish and grow their businesses in the Great Lakes State, we need to be either a low-cost producer or provide added value. In truth, on many occasions, a state needs to do both to lure employers. Whether it’s the cost of money associated with a line of credit or the lost opportunity cost of not deploying money efficiently, the cost of money is a real cost. The leaders of states that have enacted private sector prompt pay legislation recognize the importance of a healthy construction industry and what it can do for their individual state’s overall economy today and into the future.

For a state to have a healthy construction industry, the money must flow in a timely and efficient manner. Unfortunately, in today’s private sector construction industry, intentional and unreasonable delays in paying for work, materials and services that have been accepted as being completed satisfactory are becoming more prevalent. In fact, delays in excess of 120 days are not uncommon. The Michigan Construction Payment Act will put an end to this unscrupulous practice. Key provisions of the MCPA include:

  • Owners must prove their ability to pay;
  • Owners are required to pay for acceptable work within 30 days;
  • Contractors and subcontractors must pay their tiers within 7 days of receiving payment;
  • An interest penalty clause is included for wrongfully withholding payment;
  • Contractual retainage/retention provisions are prohibited;
  • Withholding of payment without penalty for work unsatisfactorily completed is permitted;
  • Contract provisions requiring the contractor to assume the risk of non-payment are void and unenforceable.

Consequently, we are asking everyone for their support in addressing and rectifying this very critical problem plaguing our industry. For starters, we need you to write to and/or call your local legislators. Timing is of the essence! Click this link for a customizable letter that you can send to your local State Senators and Representatives: Request Letter to the Legislators .

See who your Senators and Representatives are at this link: buildwithcam.com/government-contacts. Tell them today that you support CAM’s Michigan Construction Payment Act!

Thank you for your support of this paramount issue.

Sincerely,

Joseph Fontanesi

2018 CAM Chairman of the Board

Fontanesi & Kann Co./Architectural Building Components, Inc.

 

Member Benefit – Fuel Card

The Construction Association of Michigan is proud to partner with Sunoco and WEX to bring our Members even more benefits and services.  The Sunoco Fuel Card Program provides one simple solution for streamlined reporting, tracking and cost management.

With the program, you’ll save money each time you fill your gas tank at Sunoco and gain complete control over your business fueling expenses.  Other benefits include:

  • Monthly volume rebate on Sunoco fuel (gas & diesel)
  • Significantly reduce administrative time
  • No account set-up fee or monthly card fee
  • Online reporting and management tools
  • Award-winning customer service

Click here for a free analysis

2018 Biennial Business Survey Results Are In!

What are the most pressing business and strategic issues in Michigan’s construction industry? What are construction leaders optimistic about, and what’s keeping them up at night? How are they addressing the workforce shortage?

Learn about these topics and more in the 2018 Biennial Business Survey Outlook, presented by the Construction Association of Michigan and Plante Moran. The survey was issued online, and data was compiled from confidential responses by an independent survey company and developed as a collaborative effort.

There are many valuable insights in this year’s survey outlook report. The results show a forward-thinking industry ready for the future.

Click here to view the Survey’s Executive Summary

The Mid-Year Economic Forecast a Success

The Construction Association of Michigan (CAM), American Institute of Architects Michigan (AIA) and Home Builders Association of Southeastern Michigan (HBA) partnered to present the eighth annual Mid-Year Economic Forecast and State of the Industry Breakfast on Wednesday, June 20, 2018. The event was held at the Suburban Collection Showplace in Novi and featured Keynote speakers Eric Bussis, Michigan Chief Economist and Director of the Office of Revenue and Tax Analysis in the Michigan Department of Treasury and Jim Baird, partner with Plante Moran Financial Advisors, Chief Investment Officer and Investment Committee Chair.

Kevin Koehler, president of CAM noted, “With this annual event, we have created a valuable service to everyone involved in construction. We offer them the opportunity to convene to gain national and regional perspectives on our economy and the impact on our industry.”

Michael Stoskopf, CEO of HBA chimed in before the event, “This is the eighth year we are producing this event and we anticipate that both speakers will offer important insights to aid the audience in making their business plans for the remainder of 2018 and beyond.”

Click here to view the presentation as given by Mr. Eric Bussis, Michigan Chief Economist and Director of the Office of Revenue and Tax Analysis in the Michigan Dept of Treasury

Click here to view the presentation as given by Mr. Jim Baird, partner with Plante Moran Financial Advisors, Chief Investment Officer and Investment Committee Chair

 

 

 

Member Benefit: Wireless Provider

The Construction Association of Michigan is thrilled to welcome Metro Wireless to our list of preferred providers. Metro Wireless provides internet and phone needs, tailored to the construction industry. They can provide temporary options for jobsite trailers as well as business internet for your office. CAM members receive an exclusive 5% discount on services.

For more information, contact Brian Katz at 313-307-6402.

Member Benefit: Virtual Planroom

The Construction Association of Michigan has been providing project reporting since our earliest beginnings in 1885.  Our newsroom works tirelessly to bring you the most accurate, up-to-date information on projects bidding throughout Michigan and surrounding areas.  We report on approximately 8,000 unique projects every year!  All CAM members are welcome to access the online planroom from our offices located in Bloomfield Hills and Saginaw.  For a more personalized experience, the planroom may be accessed from your home or office through a paid subscription.  We offer monthly, quarterly and annual payment plans.  For more information or to request a FREE trial, visit our Virtual Planroom page.

All CAM Golf Outings Are Sold Out!

All four outings are now SOLD OUT.  Please email lewis@buildwithcam.com to be added to our wait list.

CAM’s scheduled outings include:

  • Tuesday, June 19th at Bay Pointe Golf Club in West Bloomfield – Sold Out
  • Tuesday, July 17th – Links of Novi Golf Club in Novi – Sold Out
  • Tuesday, August 21nd – Fieldstone Golf Club in Auburn Hills – Sold Out
  • Monday, September 24th – Forest Lake Country Club in Bloomfield Hills – Sold Out

CAM golf outings are a great way to network with colleagues and have fun in the great outdoors. All outings include dinner, awards, and door prizes.

SPONSORSHIP OPPORTUNITIES ARE STILL AVAILABLE.  Sponsor a hole at all four outings for just $175 – it’s a great way to achieve maximum exposure for your product or company!

There is a new registration process. Click here for more details on each outing and to register for golf.  See you on the links!

 

 

The Mid-Year Economic Forecast

Join the Construction Association of Michigan (CAM), the Home Builders Association of Southeastern Michigan (HBA), and the American Institute of Architects (AIA) as we assess the national and regional perspectives of our economy and how it is affecting our industry.


On Wednesday, June 20, 2018, these organizations will present the eighth annual Mid-Year Economic Forecast and State of the Industry Breakfast at the Suburban Collection Showcase in Novi.



Click here for more information and to register. Also, sponsorship opportunities are available!