Issuing a Michigan preliminary notice is a powerful way to help ensure timely payments for construction projects. This notice, usually sent to the property owner early in the project, serves as an important informational document. However, Michigan has specific rules and requirements for these notices, making it crucial to get all the details right.
The timing and type of notice required can vary depending on the project and the work being performed. Ensuring the effectiveness and accuracy of your notice can be more complex than expected. Below is a guide to the essential rules and guidelines for sending a preliminary notice in Michigan.
Key Takeaways
- Timely Notice is Crucial: In Michigan, sending a Notice of Furnishing within 20 days of providing labor or materials (or 30 days for wage laborers) is vital to protect your right to file a mechanics lien in Michigan.
- Required Recipients: The Notice must be delivered to both the property owner (or their representative) and the general contractor, either in person or by certified mail.
- Proper Information is Key: Ensure that your Notice includes all necessary details, such as the property address, a description of the work, and the names and addresses of the parties involved, to meet Michigan’s legal requirements.
Who Needs to Send a Preliminary Notice on Private Projects in Michigan?
In Michigan, prime contractors typically aren’t required to send a preliminary notice. However, if the property owner requests it, prime contractors must provide a list of all subcontractors and suppliers working on the project.
For all other parties who didn’t contract directly with the property owner, a Michigan Notice of Furnishing is required on private construction projects.
On residential projects, both prime contractors and subcontractors must submit Sworn Statements. The prime contractor provides this to the property owner, and subcontractors provide it to the prime contractor before receiving any progress or final payments. These statements must include a list of all subcontractors, suppliers, laborers, and sub-subs, along with the amounts paid, if applicable.
When Does a Michigan Preliminary Notice Need to Be Sent?
A Notice of Furnishing should typically be submitted within 20 days of beginning work or delivering materials to the project. If a Notice of Commencement (NOC) hasn’t been filed or provided after a request, the notice must be sent within 20 days of the NOC being filed or received. For wage laborers, the notice must be sent within 30 days of when wages are due.
It’s recommended to send the notice promptly, as the property owner won’t be liable for payments made to the contractor before receiving the notice. A Sworn Statement should be submitted whenever a payment is requested or due on residential projects.
Who Do I Need to Send Preliminary Notice to in Michigan?
To ensure validity, a Michigan Notice of Furnishing must be delivered to both the property owner (or their designated representative, if applicable) and the general contractor.
What Information Is Required on a Michigan Preliminary Notice?
To meet the requirements outlined in Mich Comp. Laws §570.1109(4), a Michigan Notice of Furnishing must closely follow the specified format and include the following details:
• The claimant’s full name and address
• The property owner’s, lessee’s, or designated recipient’s name
• The address of the property in question
• The hiring party’s name and address
• A detailed description of the labor or materials provided
• Notice of Commencement details, including recording information (line and page number) or a copy of the notice
• Mandatory statutory notice wording
How Should a Preliminary Notice Be Sent in Michigan?
Notice of Furnishing Michigan can be delivered in person or sent via certified mail.
Is a Michigan Preliminary Notice Considered Served When Mailed or When Received?
When a Michigan Notice of Furnishing is sent through certified mail, it is deemed served once it is mailed. For other delivery methods, service is effective upon the notice’s receipt.
What If I Send a Michigan Preliminary Notice Late?
Failing to submit the Notice of Furnishing on time doesn’t completely invalidate a mechanics lien claim in Michigan. However, the lien amount is limited to the remaining unpaid balance the owner owes to the general contractor when the notice is received.
Who Needs to Send a Preliminary Notice on Public Projects in Michigan?
In Michigan, second-tier subcontractors, suppliers, and lower-tier claimants on public projects must provide a preliminary notice to preserve their right to file a claim against the payment bond if payment issues arise.
When Do I Need to Send a Michigan Preliminary Notice?
For Michigan public projects, preliminary notices must be submitted within 30 days from the initial provision of labor or materials to the project site.
Who Do I Need to Send a Public Preliminary Notice to in Michigan?
Michigan preliminary notice for public projects must be delivered to the prime contractor responsible for the payment bond. While optional, providing notice to the surety issuing the bond can offer additional transparency for the project.
What Information Is Required on a Michigan Public Preliminary Notice?
A Michigan public project preliminary notice must contain the following details:
- The claimant’s full name and address
- The name and address of the hiring party
- A description of the labor or materials supplied
- A description of the property involved
How Should a Public Preliminary Notice Be Sent in Michigan?
In Michigan, a public preliminary notice should be sent via certified mail to the prime contractor’s business or residential address. Alternatively, if the claimant can demonstrate that the notice was received through another method, it will still be considered valid.
Is a Michigan Preliminary Notice Considered Served When Mailed or When Received?
Michigan courts have ruled that actual receipt is not required, meaning that notice is considered served once it is properly mailed, even if not directly received.
What If I Send a Michigan Public Preliminary Notice Late?
If a Michigan preliminary notice is not submitted within the 30-day period for a public works project in Michigan, the claimant loses the right to file a payment bond claim.
About Michigan Preliminary Notices
Michigan mandates that most participants in a construction project provide preliminary notices, though the type of notice and its deadline can vary depending on the project’s nature and the participant’s role. Interestingly, Michigan is one of the few states that specifically requires the filing of a notice of commencement, with penalties for failure to comply.
Typically, contractors who have direct contracts with the property owner are not required to issue a preliminary notice. However, if requested, they must provide a list of subcontractors and suppliers. On residential projects, direct contractors are required to submit a sworn statement to the property owner before receiving progress or final payments. This statement lists all sub-tier contractors and the amounts unpaid to them, helping property owners track potential liabilities and ensuring mechanics lien waivers have been received. Similarly, subcontractors on residential projects must also provide a sworn statement to the general contractor.
For those who do not contract directly with the property owner or their agent, a Notice of Furnishing must be sent within 20 days of first providing labor or materials on the project. This is the traditional form of preliminary notice typically referenced in Michigan’s requirements.
Public projects in Michigan also have specific rules. Subcontractors who are not contracted with the public entity or the general contractor must submit a preliminary notice within 30 days of first furnishing labor or materials.
How to File Preliminary Notice in Michigan?
Why Send a Notice of Furnishing? A Notice of Furnishing is crucial to securing your right to file a mechanics lien. In Michigan, this preliminary step is necessary to protect lien rights. Without this notice, you cannot file a claim of lien on a project.
Who Needs to Send Michigan Preliminary Notice? According to the Michigan Construction Lien Act, if you do not have a direct contract with the property owner (or the owner’s representative), you are required to send a Notice of Furnishing. In residential projects, general contractors must submit a sworn statement to the property owner, and subcontractors must do the same to the general contractor, before receiving any final or progress payments.
What Information Should Be Included in the Notice of Furnishing?
While Michigan offers a preferred form for this notice, here are the details you need to include:
- The name of the designee from the notice of commencement
- The address of the notice of commencement
- The names and addresses of the parties involved
- The county where the work is being performed
- A description of the work
- The lien claimant’s (your) name and address
- The name and address of the person signing on behalf of the lien claimant
When Should You Send the Notice of Furnishing in Michigan? The Notice of Furnishing must be sent within 20 days after providing labor or materials on a project. For workers, notice must be sent within 30 days of when wages became due. The sworn statement should be submitted when requested or before payment is due.
How to Send a Michigan Notice of Furnishing? The notice must be served to both the owner (or their designee) and the general contractor. This can be done either personally or by certified mail with the return receipt requested.
Additional Tips It’s advisable to send the notice as soon as possible since the property owner is not liable for any amounts already paid to the contractor before receiving the notice. If sent late, the lien amount may be reduced by any payments made before the notice was received.
When filing a lien claim, you will need proof that the Notice of Furnishing was served, which can be referenced under Michigan law statute § 570.1111.
Get in Touch
Sending a preliminary notice in Michigan is an essential step in safeguarding your rights to file a mechanics lien and ensuring prompt payment for labor and materials provided on a construction project. While the process may vary depending on the project type and the role of the contractor or subcontractor, understanding the specific requirements—such as timing, recipients, and necessary information—can help streamline the process.
Adhering to Michigan’s rules for issuing a Notice of Furnishing, whether on private or public projects, is crucial to maintaining legal protection for unpaid claims.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
