Subcontractors Package - Michigan 2026

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  1. Click ‘Get Form’ to open the Subcontractors Package - Michigan in the editor.
  2. Begin with the Subcontractor’s Agreement. Fill in the names of the parties involved, jobsite details, and a description of the work to be performed. Ensure you specify payment amounts and schedules.
  3. Next, complete the Construction Project Information Sheet by entering relevant project details such as commencement date and involved parties.
  4. Use the Change Order Sheet to document any additional work authorized during the project. Clearly outline changes and ensure they align with your original agreement.
  5. Fill out the Weekly Equipment Summary to track equipment usage, including make, model, and maintenance records.
  6. Complete the Time and Material Log for accurate tracking of hours worked and materials used for invoicing purposes.
  7. Utilize other forms like the Bid Log and Final Project Punch List as needed to manage bids and finalize project tasks effectively.

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General contracting businesses working on projects valued at less than $600 do not require a license. Just about everyone else needs to carry one, and well go further into that in a bit. Also, all Michigan businesses have to register with the states Department of Treasury.
The Construction Financial Management Association reveals that builders typically enjoy an average pre-tax net profit ranging from 1.4 to 2.4 percent. Conversely, subcontractors see a slightly higher average pre-tax net profit, falling between 2.2 to 3.5 percent.
Most general contractors use a markup of between 15-20%. However, contractor markups largely depend on the project and average costs in the area.
The average profit margin for general contractors is between 1.4 and 2.4 percent. Subcontractors are only marginally better off, coming in at 2.2-3.5 percent. Margins that narrow often mean a single mistake or delay can turn a profitable job into one where you wont make any money.
(4) If payment terms are not specified in the contract between the general contractor and a subcontractor or supplier, a general contractor shall pay all undisputed amounts owed to its subcontractors, suppliers, or materialmen within 7 days after receipt of payment for the subcontractors work or suppliers materials

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Markup = (Markup Percentage/100) x Subcontractor Cost For example, if the subcontractor cost is $10,000 and the markup percentage is 20%, the markup would be $2,000. The selling price would be $12,000. Its important to note that markup percentages can vary depending on the specific subcontractor and project.
General Contractor Markup on Subcontractors A common approach is to add a percentage to the subcontractors hourly wage, typically 15%20%. This approach can docHubly affect both project cost and profitability.
Subcontractors receive payment once a portion of work is completed, even if there is more scheduled work. These milestones are usually outlined before work begins. Completion payments.

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