The Five states that require a Notice of Commencement to be filed before a construction project can begin are; Michigan, Iowa, Florida, Georgia and Ohio.
What you Need to Know About Michigan
In Michigan, this document must be filed with the registrar of deeds in the county where the project is physically located. Other states have similar rules, but you must confirm the process and procedures for each jurisdiction before proceeding.
The Notice of Commencement Must Also Be Posted At The Project Worksite
In addition to filing the document, the Notice of Commencement must also be posted at the project worksite. The Notice of Commencement is an extremely preliminary document, designed to include the most basic of information regarding the project, namely a description of the project itself and contact information for key people involved in the project.
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Where Does the ‘Notice of Furnishing’ Come into the Picture?
In Michigan Notice of Commencement, the detailed information is more than a minor legal requirement. In Michigan and other states requiring one, it assists other involved people and businesses in filing a Notice of Furnishing. This Notice of Furnishing is required for any person or business working on a project that does not have any contact with the owner directly. This essentially means subcontractors.
What Information Does the ‘Notice of Commencement’ include?
The Notice of Commencement contains much of the information needed for the filing. These notices, considered together, provide basic information for both the owner designee (the representative of the owner) and general contractor as a basic schedule of who is working on the project, defining the scope of work, and relevant contact information for all parties.
The Importance of Reviewing the Notice of Commencement
Sometimes, a visit to the project worksite is impracticable, but you still need to review the Notice of Commencement. In this case, you can request a copy of the notice from the owner or owner designee, but that request should be in writing and sent via certified mail. Upon receipt of this request, the owner or owner designee is required to respond within 10 days by sending both the Notice of Commencement and a blank template for your Notice of Furnishing. If dealing with the owner is problematic for any reason, you can also request these documents from the Registrar of Deeds where the notice was initially filed, namely in the county where the project is located. Some counties are rather advanced technologically, meaning that in some places, these documents can be found online. Others are less advanced, requiring a personal visit to their offices.
These methods should allow you to obtain a copy of the Notice of Commencement. But what happens when these ‘easy ways’ fail to work and you’re left without the document you need. Some projects are managed perfectly, making every document available and easy. Others can make this kind of simple task more difficult. The Notice of Commencement is required under Michigan law, but sometimes, a general contractor or owner may have these kinds of requirements slip through the cracks.
The Notice of Furnishing Under Michigan Law
Under Michigan law, the Notice of Furnishing is required within 20 days of the date when the subcontractor started work on the project. An owner’s failure to post or file a Notice of Commencement, however, changes this deadline. Under Sec. 108(10) of Michigan’s lien statute provides a rule for the exception: if an owner doesn’t file a Notice of Commencement, the subcontractor does not need to send a Notice of Furnishing “until 20 days after the notice of commencement has been recorded.”
What Can Be Done If You Fail to Obtain the Notice of Commencement
If you have tried to locate the Notice of Commencement and been unable to do so, the best course of action for a subcontractor is to simply continue as if one was properly filed. You should send your Notice of Furnishings as best you possibly can, indicating the reasons for any incompleteness. Sending in this Notice of Furnishing, even if incomplete, will help protect your rights regarding a lien in the future. Additionally, by submitting the notice, you will be indicating the date in which your work began, which can be vitally important when it comes to deadlines. You’ve already been exposed to the fact that the project isn’t handling their paperwork professionally, so it’s a great idea to manage your own paperwork so that you can get paid on time and protect any other rights you may have. Your own Notice of Furnishing is what protects your rights, specifically your right to get paid via a mechanic’s lien, not the Notice of Commencement.
Paperwork is a Part of the Business
Anyone that has worked in construction before knows that the required forms, contracts, timelines and other bureaucratic aspects make something that should be simple into something far too complex for the average subcontractor. You know how to build things. You are not a lawyer. And yet, many of these requirements force you to act like one. Making these problems even worse is the fact that the specific rules vary from jurisdiction to jurisdiction, so you should make yourself especially aware of the rules and requirements in your location and the location of the project.
How to Truly Succeed in the Construction Industry
If you want to truly succeed in the construction industry, you need to consider your legal rights as to every relationship you have. You should make sure to establish internal business procedures to document everything in case issues with the project come up. These procedures will help you document the relationship and meet every deadline you agreed to. The Michigan Notice of Commencement is one element of these practices, but it is a very important one in some states and should never be ignored.
This blog is for educational purposes only and not intended for legal advice.
Frequently Asked Questions
What is a Michigan Notice of Commencement?
A Michigan Notice of Commencement (NOC) is a written notice recorded with the county Register of Deeds by the property owner BEFORE construction begins on a residential project. Under MCL 570.1108, the NOC must identify: (1) the owner's name and address; (2) the property's legal description; (3) the general contractor's name; (4) the construction lender (if any); (5) the project type. The NOC is the document sub-tier claimants use to identify the parties they must serve with the Notice of Furnishing — without it, sub-tier claimants struggle to preserve lien rights.
Is a Michigan Notice of Commencement required on every construction project?
The NOC is required on owner-occupied residential property of 1-4 units. Commercial projects and large multi-family projects do not require an NOC, but sub-tier claimants on those projects still must serve their Notice of Furnishing under MCL 570.1109 within 20 days of first furnishing. Owners who fail to record an NOC on a required residential project face weakened defenses against sub-tier liens — the lack of NOC can extend the time within which sub-tier claimants may file liens against the property.
How does the Notice of Commencement affect sub-tier claimants?
Sub-tier claimants (subcontractors, suppliers, equipment lessors) on Michigan residential projects must serve a Notice of Furnishing on the owner and GC within 20 days of first furnishing under MCL 570.1109. The NOC provides the address and contact information for service. Sub-tier claimants must request a copy of the NOC from the county Register of Deeds or directly from the owner — many sub-tier claimants miss the 20-day deadline because they could not identify where to serve the Notice of Furnishing. Practical recommendation: obtain the NOC the day work begins.
What is the deadline to file a Michigan mechanics 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 Furnishing?
Under MCL 570.1109, sub-tier claimants on Michigan construction projects must serve a Notice of Furnishing on the property owner and GC within 20 DAYS of first furnishing labor or materials. The Notice of Furnishing alerts the owner that the sub-tier claimant is on the project and preserves the sub-tier claimant's mechanics 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 happens if the owner doesn't file a Notice of Commencement?
Owner's failure to record a Notice of Commencement on a required residential project doesn't bar sub-tier liens — it actually weakens the owner's defensive position. Sub-tier claimants who could not identify the owner or GC due to missing NOC may receive extended time to serve their Notice of Furnishing. The owner may also lose certain statutory defenses against sub-tier lien claims. Owners who fail to record the NOC face increased double-payment exposure to sub-tier claimants. National Lien & Bond's Michigan network attorneys evaluate NOC compliance in every Michigan project.
How does National Lien & Bond help with Michigan construction-payment recovery?
National Lien & Bond files Michigan mechanics liens and Notices of Furnishing 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 claimants 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 MCL 570.1111, and the 1-year foreclosure suit under MCL 570.1117. 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.