A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.

A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Michigan, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor hired to manage construction or renovation projects. The agreement typically includes detailed provisions regarding the scope of work, materials to be used, subcontractor management, payment schedules, project timelines, insurance requirements, and the handling of construction liens. Michigan law requires that construction contracts comply with the Michigan Construction Lien Act, which governs the filing and enforcement of construction liens to ensure that contractors and suppliers are paid for their services and materials. It is important for both parties to clearly understand and agree upon the terms of the contract to avoid disputes and ensure legal protections. Property owners and contractors are often advised to consult with an attorney to ensure that their agreement is in compliance with state laws and to address any specific legal concerns related to their project.