Michigan Lien Laws
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In the state of Michigan, builders and contractors involved in the construction should be painfully aware of the important deadlines and procedures for protecting their rights to make claims on liens in the event of non-payment. The Michigan state code and statutes details specific timelines and procedures for prime contractors, sub contractors, and suppliers regarding their lien law rights. A general outline of these rights and the associated schedule for filings is listed below.
Primary Contractors in Michigan
Primary contractors in the state of Michigan must provide listing of all sub contractors and suppliers, including their area of work and pay, in the form of a sworn statement and given to owner upon request or at the date of payment request. Without list, no liens are enforceable and owner payment per contracts is not required.
Claims of liens by primary contractors in Michigan must be filed no later than ninety (90) days following the final date of providing material or labor to a given project or improvement. Claim of lien must also be served in form of notification to owner no later than fifteen (15) days after initial claim of lien filing. Actions to enforce claim of lien are required to be brought forth no later than one (1) year after the date of the lien claim being recorded.
Sub Contractors in Michigan
Sub contractors in the state of Michigan must offer notice of furnishing to owner and primary contractor of a given project no later than twenty (20) days after beginning the project. Individual laborers must file notice within thirty (30) days of non-payment of expected wages or at the date of the fifth of the second month following the month of non-payment of any form of benefits, both wages and fringe benefits, were unpaid. Any sub contractor further sub contracting their contracts must provide sworn statement of all other entities, their work expectations, and costs. Without list provided to primary and owner, all subsequent lien actions by sub contractors are invalid.
Sub contractors wishing to lay claim on a lien are required by law to file their claim within ninety (90) days of the last date on a given project, either with labor or materials. Owner must receive copy of actual claim of lien within fifteen (15) days of filing, and any actions to enforce lien must take place within one (1) year from this date along with a lis pendens notice as well.
Materials Suppliers in Michigan
Materials suppliers in the state of Michigan are required to provide owners, prime contractor, and sub contractors a complete notice of furnishing no more than twenty (20) days after providing the first materials or supplies.
Claims of lien by materials suppliers takes the same form as those undergone by sub contractors in the state of Michigan, which include:
- Lien claims filed within ninety (90) days of completion
- Notice to owner of claim of lien filed within fifteen (15) days
- Actions to enforce claim of lien must take place within one (1) year