It’s not always easy to receive the gold you’ve earned in the Mitten State. Michigan, like all other states, has mechanics lien laws to help construction workers and suppliers like you get paid. Like all other states, Michigan mechanics lien and Michigan construction lien laws are also confusing and complicated. So you need to know how the law works to be able to properly file a Michigan lien and protect your right to be paid. Here are 5 things you need to know about the Michigan lien laws as reported to NLB busy our network of Michigan construction attorneys and Michigan construction lawyers to successfully file your next lien.
WHO CAN FILE A MICHIGAN MECHANICS LIEN
Generally, every state has laws that limit who can file a mechanics lien and a payment bond claim, and Michigan liens are not the same to perfect. You need to know how and when to take the required steps. The pre-lien or preliminary notice requirements are different for each state on Private, Public, and Federal Projects. When you send the notice to the owner, preliminary notice, or pre-lien notices are also different for a supplier, sub, GC, or design professional.
SCHEDULE A NO-COST INITIAL CALL WITH NLB’S GENERAL COUNSEL TO GET STARTED
National Lien & Bond professional lien providers and Michigan construction lawyers have helped subs and suppliers get paid on over 26,000 projects since 1986. NLB is here to help you learn what steps you need to take and when to send a notice or lien to secure your job funds on every project.
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You are invited to set up an appointment with general counsel to discuss the details of how and when to take the steps you need to get paid on every project Click Here.
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NOTICE OF RIGHT TO LIEN
Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic’s lien, often referred to as the “Preliminary Notice”. It must be served on the owner and the general contractor. Unless you are working directly for the general contractor. If the owner obtained a loan to fund the project, you must also serve the notice to the construction lender. The Preliminary Notice timing shown is not always mandatory but will afford maximum protection for liens.
This notice may be served when you begin supplying materials to the project. If you miss the statutory date, you may in some states still serve the notice to capture remaining funds as state law typically bit not always provides. Notice (Statutory Form) to owner, contractor, construction lender & person with whom the claimant has contracted within a date certain from the time you began work, or in some times before you start and in others when you completed work.
The notice may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you need to provide proof of this service by affidavit and proof of mail delivery. The notice typically includes a description of the work or goods you will provide, the estimated total price of the work or goods you will provide, and the statutorily required statement.
PREPARING THE MICHIGAN MECHANICS LIEN
Every mechanics lien typically must contain the owner’s name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed. The lien may also include other statutorily required statements and best practices require a lien to be prepared by a lawyer in the project state.
FILING AND SERVING THE MICHIGAN MECHANICS LIEN
According to the mechanics lien law, after your notices are served timely the lien must be filed in the county recorder’s office in the county where the property is located. The lien may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you may in several states need to provide proof of this service by affidavit and proof of mail delivery.
FINAL THOUGHTS
Even if circumstances change, it is never too late to start a dialogue with the owner and GC Click Here to set up an appointment with general counsel to discuss the details of your initial consultation. If you properly perfected all the required steps you can likely start a foreclose action on the lien, sue the surety on a bond or sue for collection and other remedies. Property owners and competing creditors may try to block your path, but if you followed the law, you will have placed yourself in a strong secured position against your adversaries. To learn how to secure all your receivables Click Here to set up an appointment with general counsel to discuss the details of securing your company’s entire receivables on private public and federal construction projects both in the USA or around the world.
Frequently Asked Questions
Does Michigan require a preliminary notice before filing a construction lien?
Yes — under MCL 570.1109, sub-tier claimants must serve a Notice of Furnishing on the property owner and GC within 20 DAYS of first furnishing labor or materials to a Michigan construction project. The Notice of Furnishing alerts the owner that the sub-tier claimant is on the project and preserves the sub-tier claimant's lien rights. Failure to serve the Notice of Furnishing within 20 days bars lien rights for any work furnished MORE than 20 days before the notice was actually served. The Notice of Furnishing is Michigan's equivalent of California's 20-day Preliminary Notice.
What is the deadline to file a Michigan construction lien?
Under MCL 570.1111, the Michigan Claim of Lien must be recorded with the county Register of Deeds within 90 DAYS after the date the claimant last furnished labor or materials to the project. The 90-day deadline runs from LAST furnishing, not from completion of the entire project. After recording, the claimant must serve the lien on the owner within 15 DAYS under MCL 570.1112. Foreclosure suit must be commenced within ONE YEAR of recording under MCL 570.1117. All three deadlines are strict.
What is a Michigan Notice of Commencement?
Under MCL 570.1108, the property owner must record a Notice of Commencement BEFORE construction begins on residential projects of 1-4 units. The NOC identifies: (1) the owner; (2) the GC; (3) the construction lender (if any); (4) the property type. Sub-tier claimants use the NOC to identify parties they must serve with the 20-day Notice of Furnishing under MCL 570.1109. Owner's failure to record the NOC on a required residential project weakens defenses against sub-tier liens.
What is the Michigan Homeowner Construction Lien Recovery Fund?
Under MCL 570.1201 et seq., Michigan maintains a Homeowner Construction Lien Recovery Fund — a state-administered fund that pays limited recovery to subcontractors and suppliers on residential construction projects when the property owner cannot pay. The fund is funded by license fees from Michigan contractors. The fund provides up to $75,000 per residential project and up to $200,000 in aggregate per year. The fund is unique among U.S. states and provides additional recovery beyond traditional mechanics lien rights.
What contents are required on a Michigan Claim of Lien?
Under MCL 570.1111(2), the Michigan Claim of Lien must contain: (1) the name and address of the claimant; (2) the name of the owner or reputed owner; (3) the name of the party who employed or hired the claimant; (4) a description of the property sufficient for identification; (5) the dates of first and last furnishing; (6) a description of the labor, services, or materials furnished; (7) the amount of the lien (after credits); (8) verification by the claimant under oath. Defective Claims of Lien missing required contents are unenforceable under Michigan law.
Who can file a Michigan construction lien?
Under MCL 570.1107, construction lien rights belong to: (1) original contractors in privity with the owner; (2) subcontractors at every tier; (3) material suppliers furnishing to the GC or subcontractors; (4) equipment lessors; (5) design professionals (architects, engineers, surveyors); (6) laborers in some circumstances. Each claimant type has slightly different notice and content requirements — verify with Michigan construction-payment counsel before filing. Sub-tier claimants on residential projects must serve the 20-day Notice of Furnishing under § 570.1109.
How does National Lien & Bond help with Michigan construction liens?
National Lien & Bond files Michigan construction liens for unpaid contractors, subcontractors, suppliers, and equipment lessors. For Illinois-based engagements, Hal Emalfarb's firm at Emalfarb Swan and Bain handles strategic coordination. For Michigan-jurisdiction matters, NLB connects unpaid contractors with vetted Michigan construction-payment attorneys who handle the 20-day Notice of Furnishing service under MCL 570.1109, the 90-day Claim of Lien recording under § 570.1111, the 1-year foreclosure suit under § 570.1117, and the Homeowner Recovery Fund claims under § 570.1201. NLB's 50-state deadline-tracking system prevents the missed-deadline forfeitures that cause most Michigan lien losses. Contact NLB for a free initial consultation.