Business Contracts
Construction Contract Foundations
Cracks in a school construction contract’s foundation can lead to costly disputes, project delays, and unexpected financial burdens. This article highlights key construction contract pitfalls and offers recommendations for securing legally compliant, favorable contract terms. Indemnification For Michigan public schools, indemnification is typically a one-way street. Indemnification means reimbursing another party for losses, damages, or…
Read MoreAvoid Terms That Take the “Ease” Out of Lease Financing
When schools seek to purchase new equipment (e.g., buses, copiers, or tablets), vendors frequently offer financing packages in the form of a lease purchase agreement (LPA) or other type of financing lease with a third-party leasing company. Though seemingly straightforward, the terms contained in LPAs can be extremely detrimental to schools. LPAs are different from…
Read MoreBackground Checks: Don’t Forget Employees of Third-Party Contractors
With limited exceptions, school officials must obtain a criminal history and records check for employees of third-party contractors who are assigned to “regularly and continuously” work on school property. Revised School Code (RSC) Sections 1230 and 1230a provide that when an individual is assigned to regularly and continuously work under contract at a school, officials…
Read MoreCompetitive Bid Threshold Increased
On October 10, 2024, MDE issued a memorandum announcing the new competitive bid threshold, which MDE adjusts annually to account for inflation based on the consumer price index. School districts, ISDs, and public school academies must competitively bid the following if the cost will exceed the new bid threshold of $30,512: (1) labor and materials…
Read MorePrevailing Wage Act Amendments
Governor Whitmer recently signed into law Public Act 110 of 2024, which amends the Michigan Prevailing Wages on State Projects Act (Prevailing Wage Act) to: (1) extend prevailing wage requirements to energy facility projects; (2) impose a registration requirement for state project contractors and subcontractors; and (3) require the submission of certified payroll records for…
Read MoreIt’s Not a Competition: FTC’s Non-Compete Rule
In April, the Federal Trade Commission (FTC) published a Final Rule that prohibits most non-compete clauses, which was set to take effect on September 4, 2024. The Final Rule would have made it easier for a school to hire or contract with an individual who is subject to a non-compete clause. A Texas federal district…
Read MoreMore New Asbestos Legislation
In our May 2024 School Law Notes, we reported the enactment of the Public Entity Asbestos Removal Disclosure Act, which imposed a new contractor affidavit requirement for school friable asbestos abatement projects, and amendments to the Michigan Occupational Safety and Health Act, which added penalty provisions for asbestos-related violations. Governor Whitmer recently signed into law…
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