Michigan Account Stated for Construction Work

• Category: Construction - Contractors - Payments
• State: Multi-State
• Control #: US-0031BG
• Format: Word; Rich Text

Description

An account stated is a statement between a creditor (the person to whom money is owed) and a debtor (the person who owes) based upon a series of prior transactions that a particular amount is owed to the creditor as of a certain date. Michigan Account Stated for Construction Work refers to a legal concept that arises when there is an agreement between parties involved in a construction project regarding the amounts owed for completed work and services provided. When it comes to construction projects, an account stated is a statement of the agreed-upon amounts owed by one party to another, typically in relation to work performed or materials supplied. It serves as a formal acknowledgement and acceptance of the outstanding balance between the parties. In Michigan, an account stated for construction work can be of two types: open-ended and final. 1. Open-Ended Account Stated: This type of account stated is established when contractors or subcontractors submit periodic invoices or billings to the owner or general contractor during the course of the construction project. These invoices typically detail the services rendered, materials supplied, and the corresponding costs. If the owner or general contractor does not object to these invoices within a reasonable time, usually within 30 days, the invoices are considered accepted, and an open-ended account stated is formed. This means that the owner or general contractor acknowledges the indebtedness for the specified work performed or materials provided. 2. Final Account Stated: Once the construction project is completed, the contractor or subcontractor submits a final invoice to the owner or general contractor, detailing all the services rendered, materials used, and the associated costs. If the owner or general contractor fails to raise any objections within a reasonable period, typically 30 days, the final invoice is deemed accepted, and a final account stated is established. This final account stated represents the total amount owed and serves as a binding agreement between the parties regarding the outstanding balance. It is essential to note that the formation of an account stated requires the absence of any objection or dispute regarding the invoices or billings within the specified time frame. Parties should carefully review the invoices and raise any discrepancies or disagreements promptly to avoid inadvertently accepting the stated amounts. In summary, Michigan Account Stated for Construction Work refers to the acknowledgement and acceptance of the amounts owed in relation to completed work and services provided during a construction project. The two types of account stated include open-ended, established through periodic invoices during the project, and final, formed by the submission of a final invoice upon project completion. Proper communication and prompt dispute resolution are pivotal to ensure the accurate establishment of an account stated in construction work in Michigan.

Michigan Account Stated for Construction Work refers to a legal concept that arises when there is an agreement between parties involved in a construction project regarding the amounts owed for completed work and services provided. When it comes to construction projects, an account stated is a statement of the agreed-upon amounts owed by one party to another, typically in relation to work performed or materials supplied. It serves as a formal acknowledgement and acceptance of the outstanding balance between the parties. In Michigan, an account stated for construction work can be of two types: open-ended and final. 1. Open-Ended Account Stated: This type of account stated is established when contractors or subcontractors submit periodic invoices or billings to the owner or general contractor during the course of the construction project. These invoices typically detail the services rendered, materials supplied, and the corresponding costs. If the owner or general contractor does not object to these invoices within a reasonable time, usually within 30 days, the invoices are considered accepted, and an open-ended account stated is formed. This means that the owner or general contractor acknowledges the indebtedness for the specified work performed or materials provided. 2. Final Account Stated: Once the construction project is completed, the contractor or subcontractor submits a final invoice to the owner or general contractor, detailing all the services rendered, materials used, and the associated costs. If the owner or general contractor fails to raise any objections within a reasonable period, typically 30 days, the final invoice is deemed accepted, and a final account stated is established. This final account stated represents the total amount owed and serves as a binding agreement between the parties regarding the outstanding balance. It is essential to note that the formation of an account stated requires the absence of any objection or dispute regarding the invoices or billings within the specified time frame. Parties should carefully review the invoices and raise any discrepancies or disagreements promptly to avoid inadvertently accepting the stated amounts. In summary, Michigan Account Stated for Construction Work refers to the acknowledgement and acceptance of the amounts owed in relation to completed work and services provided during a construction project. The two types of account stated include open-ended, established through periodic invoices during the project, and final, formed by the submission of a final invoice upon project completion. Proper communication and prompt dispute resolution are pivotal to ensure the accurate establishment of an account stated in construction work in Michigan.