Full question:
Can a subcontractor file a lien even though the property owner's only contract was with the prime contractor and that contract states that prime contractor will supply all labor and material himself? The property owner had no agreement with the subcontractor.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Michigan
Answer:
In Michigan, unpaid contractors, subcontractors, laborers, or material suppliers who have improved real property can file a construction lien against the property. This right applies only to private projects and requires adherence to specific notice and filing requirements. For residential improvements, additional rules may apply.
Before starting physical improvements, the property owner or lessee must file a Notice of Commencement in each county where the property is located. This notice must be posted on the property and sent to subcontractors or suppliers within ten days of their written request. It must include details such as the property description, owner and contractor information, and statutory language about protecting lien rights.
A subcontractor or supplier must provide a Notice of Furnishing to the owner’s designee and the general contractor within twenty days after beginning work. Laborers have thirty days to provide their notice after wages are due. While contractors with a direct contract with the owner do not need to send a Notice of Furnishing, it is advisable for subcontractors and suppliers to do so as soon as possible to protect their lien rights.
Contractors and subcontractors must provide a sworn statement regarding payments due when requested by the owner or lessee. This statement must list all subcontractors and suppliers involved in the project. A contractor or subcontractor cannot enforce a construction lien until this sworn statement is provided.
To file a claim of lien, a contractor, subcontractor, laborer, or supplier must do so within ninety days after the last labor or material was provided. The claim must include proof of service of the Notice of Furnishing. A copy of the claim must be served on the owner’s designee within fifteen days of recording it. Legal action to enforce the lien must be initiated within one year of recording the claim.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.