How to sell to Michigan counties

Michigan has 83 counties. No general state statute sets county purchasing thresholds. State law "no longer" requires public bids on local contracts, and the 1993 laws that tied bids over $20,000 to revenue sharing were repealed in 1996 (secondary: Michigan Municipal League Handbook). Each county's purchasing policy sets its quote and bid rules. State law still reaches county buying through bonds, retainage, road commission bidding, prevailing wage on state projects and the Iran certification.

At a glance

Who buys

Each county is governed by an elected board of commissioners. The board adopts the purchasing policy, and most counties have a purchasing or fiscal services office that runs quotes, bids and RFPs. The board or one of its committees approves larger contracts. Charter counties, such as Wayne and Macomb, may also follow charter rules. County road commissions and drain commissioners buy separately for their own work.

Goods and services

Thresholds come from county policy. As an example, Kent County's 2023 policy:

Source: Kent County Purchasing Policy and Procedures (2023). Other counties use different amounts.

Bills to set a statewide $20,000 local bid rule have been introduced in the past, such as 2014 HB 5826, but not enacted.

Construction and public works

No general county construction bid statute was confirmed. Each county sets its own rules.

Road commissions. County road commissions must competitively bid construction or preservation projects over $100,000, not counting maintenance. The road agency may use another method only if it finds in writing that doing so is in the public interest, and a road commission reports that finding to the county board. Traffic signal installs are exempt. The amount is not indexed (MCL 247.661c).

Bonds. Before awarding a contract over $50,000 to build, alter or repair a public building or public work, a county must require (MCL 129.201 to 129.212):

• A performance bond protecting the county.
• A payment bond protecting subcontractors and suppliers.

Each bond is set by the county but must be at least 25% of the contract amount, from a surety authorized in Michigan. Bid invitations can't require a particular surety, bank or agent. Drain Code contracts are excluded. Suppliers without a direct contract with the prime must give written notice within 30 days of first furnishing labor or materials to keep payment bond rights (Act 213 of 1963).

Bid security. No statewide county rule was confirmed. Check the solicitation.

Notice and award

No statewide notice or award rule for county purchases was confirmed. Each county's policy sets advertising, bid opening and award standards. Read the policy and the solicitation for the evaluation method.

Prevailing wage

Michigan restored prevailing wage with Public Act 10 of 2023, effective Feb. 13, 2024, and amended by 2024 PA 110, effective April 2, 2025. It covers state projects: those authorized by a state officer, board, commission or state-supported institution and sponsored or financed in whole or part by the state. There is no dollar threshold. Counties are not named, and a project paid only with county money does not meet the state funding test (Act 10 of 2023). Whether a state-funded county project is covered is not confirmed, so ask the county.

On covered projects, contractors that employ construction workers register each year with the Wage and Hour Division before bidding, register each project and submit certified payrolls. Projects with federal Davis-Bacon wage requirements are exempt from the state act (Department of Labor and Economic Opportunity). Some counties may have their own wage policies; check the solicitation.

Getting paid

Public Act 524 of 1980 covers construction contracts of public agencies, including counties.

• Retainage: up to 10% of work in place until the job is 50% complete. After that, no more is held unless progress is unsatisfactory. Retained funds go in a separate interest-bearing account at a Michigan institution and are released with interest at final payment. A contractor may get retainage released at 94% completion by posting an irrevocable letter of credit (MCL 125.1563).
• Progress payments: due by the later of 30 days after the architect or engineer certifies the work, or 15 days after the county receives state or federal funds for it. The contractor may add reasonable interest on late amounts (MCL 125.1562).

A prompt payment rule for county goods and services invoices was not confirmed. Check the contract.

Cooperative purchasing and state contracts

Counties can join MiDEAL, the state's extended purchasing program, for a small annual fee and buy from state contracts (Michigan DTMB). The program page does not say whether MiDEAL buys satisfy a county's own bid rules; that depends on county policy. If you hold a state contract, tell county buyers. See cooperative purchasing.

Preferences and required certifications

• Iran certification: counties are public entities under the Iran Economic Sanctions Act and must require a bidder on an RFP to certify it is not an "Iran linked business" (MCL 129.312 and 129.313). See Iran certification.
• Israel anti-boycott: the 2016 laws apply to state agencies; county coverage was not found.
• Local, in-state or veteran preferences and E-Verify: no statewide county rule found; check county policy.

Architects and engineers

No state law requiring qualifications-based selection for county architect and engineer contracts was confirmed. Check the county's policy and the solicitation.

Recent changes

• Feb. 13, 2024: Prevailing wage on state projects restored (Public Act 10 of 2023).
• April 2, 2025: Prevailing wage act amended (2024 PA 110).
• Proposed: 2025 SB 150 would raise road agency bidding to projects over $250,000, or each project after $800,000 of yearly spending, outside cities and villages over 500,000 people.

Practical tips for Michigan

• Read the county's purchasing policy first. It sets the quote and bid thresholds and who approves contracts.
• Budget for bonds of at least 25% on county construction over $50,000 (MCL 129.201).
• Sell road work through the road commission, which has its own $100,000 bid rule (MCL 247.661c).
• Watch board of commissioners and committee agendas for contract approvals and budget amendments.
• Check Michigan counties for each county's bid platform, contacts and agendas.