State Project Contractor Requirements

Who Must Register

Contractors and sub-contractors that employ construction mechanics must register annually with the Wage and Hour Division before bidding on or working on any State Project.

Construction mechanics include skilled or unskilled mechanics, laborers, workers, helpers, assistants, or apprentices performing physical construction work on state-funded projects.

Does not include: executive, administrative, professional, office, or custodial employees.

Note: Prevailing wage and fringe benefit rates are developed exclusively for construction mechanics. Individuals not classified as construction mechanics are not covered under these wage requirements.

What Qualifies as a State Project

A State Project includes:

New construction, alteration, repair, installation, painting, decorating, completion, demolition, conditioning, reconditioning, or improvement of public buildings, schools, works, bridges, highways, or roads.

Projects must be:

• Authorized by a public contracting agent, and
• Sponsored or financed in whole or in part by the State of Michigan.
• Includes energy facility projects, such as wind farms with a capacity of 2 megawatts or more.

State Project Registration

Required under Section 2a of Public Act 10 of 2023.

All contractors and subcontractors must register and pay a $500 annual fee.

After registering, contractors will receive instructions to access the state’s certified payroll database.

Payment Options:

• Online: After 12:00 p.m. the next business day, visit the payment website and select Project Registration
• By Mail: Send a check/money order payable to State of Michigan with your invoice to:

  Wage and Hour Division
  P.O. Box 30476
  Lansing, MI 48909

Prevailing Wage Compliance

Wage Determination

Before soliciting bids, a contracting agent must request the prevailing wage and fringe benefit rates for all relevant classes of construction mechanics from the Wage and Hour Division.

These rates are based on local collective bargaining agreements or understandings employee and employers.

The rates must be included in the project specifications and Printed on the bid documents.

Required Contract Language

Every contract for a state project must include language stating:

The wages and fringe benefits paid to construction mechanics (excluding those under the State Civil Service Commission) by the contractor and all subcontractors must not be less than the prevailing rates in the locality where the work is performed.

Exemptions:

Projects that include:

• Federal Davis-Bacon Act wage requirements (40 USC 3141–3148)

Certified Payroll Requirements

Wage and Hour Division must maintain a certified payroll system that:

• Allows online submission by contractors, subcontractors, and contracting agents.
• Ensures full compliance with prevailing wage requirements.