Do You Need a Written Construction Contract in Michigan?

Jun 19

2 min read

Many construction projects begin with a quick conversation, a proposal, or even a

handshake agreement. While that may seem fine at the beginning of a project, problems often become much harder to resolve when the terms are not clearly documented in writing and signed in agreement.

Are Verbal Construction Agreements Legal?

In some situations, yes.

Michigan law may recognize oral agreements, but proving the exact terms of a verbal agreement is often far more difficult than enforcing a written construction contract.

Disputes commonly arise over:

Scope of work
Payment terms
Project timelines
Change orders
Responsibility for delays or damages

Without written documentation, both sides can walk away from the same conversation with entirely different expectations.

Why Written Construction Contracts Matter

A written contract creates clarity and structure for everyone involved in the project.

Strong construction agreements usually outline:

Scope of work being performed
Payment schedules and deadlines
Materials and specifications
Procedures for handling changes
Project timelines and completion expectations

The more detailed the agreement is upfront, the easier it becomes to manage expectations and reduce future disputes.

Smaller Projects Can Still Become Serious Disputes

Some people assume formal contracts only matter on large commercial projects. In reality, smaller residential jobs frequently lead to major disagreements because important details were never clearly documented.

For example; issues often arise when additional work is completed without written approval, or when pricing and scheduling changes are casually discussed but never confirmed in writing.

Written Contracts Protect Everyone Involved

Construction contracts are not just about protecting contractors. They also help property owners by:

Creating accountability
Clarifying pricing and expectations
Reducing uncertainty during the project
Providing a framework for resolving disputes

A well-written agreement benefits both parties well before problems arise.

Taking a Proactive Approach

Construction disputes can become expensive very quickly. In many cases, the time spent creating a thorough contract at the beginning of a project is far less costly than resolving a dispute later.

Clear agreements, organized communication, and strong documentation can significantly reduce legal and financial risk throughout the life of a project.

If you are dealing with a construction dispute, delayed payment, or contract issue in Michigan, contact Sadecki & Associates at 248.328.1300 to discuss your situation.