Our Guide to Preliens, Waivers, Mechanic's Liens, and Bond Claims in Michigan
Michigan
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This is an overview of the state's statutory approach to lien law and what contractors might want to focus on to ensure lien rights are established timely, correctly, and effectively.
While we are happy to provide this guide as a quick reference, we HIGHLY encourage that you work with a construction attorney to help you with your particular circumstances in our complex construction lien law environment.
Michigan Quick Overview
| Pursuant Code | Mich. Comp. Laws Ann. § 570.1101 et seq. | |
| Prelien Required for Private/Commercial Projects | Yes | |
| Prelien Required for Public Projects | Yes | |
| MI Statutory Relief | Unpaid Balance | |
| Lien Milestone Event | Last furnishing/last invoice | |
| Lien Enforcement Deadline | 6 months to 1 year | |
| Waivable Lien Rights | No | |
| Supplier to Supplier Rights | Likely No | |
| Prelien Document Name(s) | Notice of Furnishing | |
| Prelien Minimum Information | The Notice of Furnishing should identify the labor or materials provided, the party to whom the claimant is contracted, and project details. | |
| Prelien Minimum Notifications | Owner, Prime Contractor | |
| Prelien Recording Requirement | no | |
| Prelien Notarized | no |
Understanding the Prelien Process on Construction Projects in Michigan by Role
Michigan requires subcontractors and suppliers to serve a Notice of Furnishing within 20 days of first furnishing. A Prime Contractor does not have to send notice. Claimants must also be prepared to deliver a sworn statement listing unpaid subcontractors and suppliers.
Possible Exceptions, Special Circumstances, and Caveats in Michigan
Architect/DesignProfessionals: Design Professionals (architects, engineers, surveyors) have separate notice and lien filing rules under MCL § 570.1107a and 1107b.
Surveying: Design Professionals (including surveyors) follow separate recording procedures under MCL § 570.1107a and 1107b.
General Labor: Laborers have 30 days or alternate timelines for fringe benefits and wages as outlined in the statute.
Mechanic's Liens in Michigan
In Michigan, mechanics liens are governed by the Construction Lien Act (M.C.L.A. 570.1101 et seq.). Prime contractors are not required to serve a Notice of Furnishing if directly contracted with the property owner, but subcontractors, material suppliers, and others must serve a Notice of Furnishing within 20 days after first providing labor or materials. A sworn statement listing subcontractors and suppliers must also be provided upon demand or payment request. A Claim of Lien must be filed within 90 days after last furnishing labor or material, served on the owner's designee within 15 days after recording, and an action to enforce must be filed within 1 year, along with a recorded lis pendens.
Bond Claims in Michigan
On public projects in Michigan, claimants seeking payment under a bond must comply with statutory requirements similar to lien rights, including providing a timely Notice of Furnishing. Generally, claimants must serve a Notice of Furnishing within 30 days of first furnishing labor or material, and may need to initiate suit within a relatively short period (often within 1 year of last furnishing or completion). Specific procedural requirements vary based on the type of bond and project.
Construction Lien Waivers in Michigan
Required Format: Michigan is one of a dozen states where all waivers MUST substantially follow statutorily required verbiage to be valid so be sure to check with your constuction attorney and consult the relevant state statutes.
Required Notarization: Michigan does not require waivers to be notarized.
Waivers are permitted in Michigan. A lien may be vacated by filing a lien discharge bond with the County Clerk and providing a copy to the claimant. Design Professionals may have separate waiver requirements.
Learn more about waivers here, including the when and how to use various types of waivers, the difference between a Lien Waiver and a Lien Release, what to look for before signing, and more.
- As a client, you'll have free access to our system that easily creates statutorily correct lien waivers.
- Through our technology partner Prelien Pro, you can also access best-in-class lien waiver management software, allowing you to easily track, collaborate, and share lien waivers with all your trade partners.
Assessors' websites in Michigan counties
Most often, the county Assessor's office is the 'go-to' resource for finding online lien-related information for construction project parcels, including ownership records, special warranty deeds, and more. Counties that we've not yet found online (those with '*') link to a Google search for your convenience.
Other Important Construction Links in Michigan
Frequently Asked Questions (FAQs) on Michigan Lien Processes for Contractors
Does a prime contractor in Michigan need to serve a Notice of Furnishing?
No, if the prime contractor has a direct contract with the property owner, it is not required to serve a Notice of Furnishing. However, it must provide a sworn statement listing subcontractors and suppliers upon demand.
How soon must a subcontractor or supplier serve a Notice of Furnishing in Michigan?
A Notice of Furnishing must be served within 20 days after first furnishing labor or materials to the project.
What is the deadline to file a mechanics lien in Michigan?
A Claim of Lien must be filed within 90 days of the last date of furnishing labor or materials to the project.
How long does a contractor have to enforce a lien after filing in Michigan?
An action to enforce a lien must be commenced within 1 year after recording the Claim of Lien, and a Notice of Lis Pendens must be filed.
Is bond claim protection available for subcontractors and suppliers on Michigan public projects?
Yes, subcontractors and suppliers can make bond claims on public projects, usually requiring a Notice of Furnishing within 30 days of first furnishing labor or materials, and must comply with deadlines for initiating a lawsuit if not paid.
We Set the Standard for the Construction Industry
Not only do we provide you with the tools, knowledge, and team to ensure you feel confident your rights are secured, but we're prepared for the trenches and ready to coordinate with your legal team when things "go sideways" on one of your projects.
