If you or your business is providing labor and/or materials to a construction project in the state of Michigan, it is in your best interest to be familiar with the general statutes included in Michigan’s Lien Law. Should one of your clients fail to remit payment on a construction project, you will be responsible for filing the proper documentation to instigate a Claim of Lien. Knowing what is expected of you as a Claimant will make the process much smoother (and more successful). In order to help you determine what documents you will need in order to file a Michigan Claim of Lien, we’ve created a quick list of the basics you should know when filing a Claim of Lien in the state of Michigan.

1. You only have 90 days after the last date of furnishing labor and/or materials to the construction project to file a Michigan Claim of Lien.
2. You must include a legal property description (more than just an address) in your Michigan Claim of Lien.
3. Within 15 days of the recordation of the Claim of Lien, you must serve a copy of the claim, along with any proofs of service filed with the lien, on the owner’s designee, as noted on the Notice of Commencement, by personal service or certified mail (with a return receipt requested). If a designee is not listed on the Notice of Commencement, you may serve the Claim of Lien on the owner or lessee.
4. The state of Michigan does not allow you to include attorney’s fees, collection costs or other amounts in the Claim of Lien total. (However, should your lien be resolved in court, you have the right to request these cost be added to the judgement).
5. General contractors, subcontractors (of any tier), laborers and material suppliers have Claim of Lien Rights if they aid in the improvement of real property on commercial projects.
6. Only licensed contractors and subcontractors have Lien Rights on residential projects if they are licensed as a “residential builder or maintenance and alteration contractor”. Plumbers, electricians and mechanical contractors are exempt from this license requirement.
7. On residential projects, Lien Rights are granted exclusively to the general Contractor. If he or she is in a direct written contract with the Property Owner.
8. If you are not in direct contract with the Property Owner, you must file and deliver a Notice of Furnishing within 20 days of first providing labor and/or materials to the project.
9. General contractors and subcontractors on a residential project must file and deliver a Sworn Statement of Account to the Property Owner. A Michigan Sworn Statement of Account provides a list of all the subcontractors, laborers, and material suppliers the party has contracted with and the amount unpaid to respective parties.
10. According to Michigan Lien Law, all construction project participants must be licensed in the state of Michigan to claim Lien Rights. If you are unlicensed or your license has expired, your Claim of Lien will be invalid, you may be held liable to the Property Owner for damages, and you may be found guilty of a misdemeanor or felony. This is not something to mess with!

Keep in mind that the above facts are merely a summary of the statutes included in Michigan’s Lien Law. For a full understanding of how you can best secure your Michigan Claim of Lien Rights, hire a Notice of Furnishing and Claim of Lien Service to prepare and serve your Michigan Notice of Furnishing, Sworn Statement of Account, and Claim of Lien. Using such a service will ensure that the proper research is completed so you minimize the risk of forfeiting your Lien Rights due to any misinformation.

CRM Lien Services will thoroughly research and verify all of the information included in your Claim of Lien documents so your Lien Rights are fully protected. We stay current with the changes to the Michigan Lien Law so your notices are prepared according to the latest statutes.

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