Michigan Notice of Commencement FAQs, Guide, Forms, & Resources

Michigan

Notice of Commencement Requirement

Yes, Must File

Notices of Commencement are required in Michigan, and they must be filed by "the owner or lessee contracting for the improvements."

Michigan

Notice of Commencement Deadline

Before Start of Job

Property owners or lessees must get the Notice of Commencement filed in the county records of the county in which the project is to occur before the start of the job. However, the notice can be filed after the project commences, and be effective after that date.

Michigan

Notice of Commencement Requirement

None, But...

In Michigan, construction lenders have no specific requirement to file a notice of commencement in Michigan, as this document must be filed by the property owner. But, as the filing of a notice of commencement has important consequences related to lien rights, preliminary notice, and potentially lien priority, it is important for a construction lender to make sure the property owner files the notice of commencement.

Michigan

Notice of Commencement Deadline

None

There are no Michigan notice of commencement deadlines for construction lenders because the NOC requirements only specifically apply to the owner or lessee of the improved property. However, it is important for a construction lender to ensure that the property owner is compliant with the notice requirements.

Michigan

Notice of Commencement Requirement

None, But...

Contractors & Suppliers are not required to file this notice in Michigan, as this document is required to be filed by the property owner or lessee. But, contractors and suppliers need to access the notice of commencement in Michigan so they can get the identity of the property owner, any owner agents, and the legal description of the improved property. This information is required for the contractor & supplier to properly prepare their Michigan Notice of Furnishing. and, if the Notice of Commencement is not filed and posted as required, the Notice of Furnishing requirement and deadline are no longer applicable.

Michigan

Notice of Commencement Deadline

There are no Michigan notice of commencement deadlines for contractors and suppliers because they do not have a NOC requirement. Michigan contractors and suppliers do have a separate notice requirement - the notice of furnishing, however.

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Michigan is one of the few states that requires a Notice of Commencement to be filed prior to beginning a construction project. Each party on a Michigan construction job has an interest in the Notice of Commencement because in some manner each party’s rights can be affected by the notice. This means it’s a good idea for everybody who works in Michigan to have an understanding of what a Notice of Commencement is, and why it matters.

Generally, a Notice of Commencement is a form publicly filed in county records to signify that a construction project is going to begin. While Notice of Commencement filing and content requirements are similar in each state in which they are required, Michigan has specific rules that must be followed. The form contains information identifying parties involved with the project and identifies the legal description of the property on which the project is to occur. This notice must both be filed, and posted on the job site.

The process is important, and the notice can have significant impacts on payment and lien rights and procedures. However, despite the implications of the notice, the notice itself is a fairly simple document.

In Michigan, the Notice of Commencement Form is not too complicated, although portions of the form like the legal property description may require a bit of research. Michigan Notice of Commencement form templates are available in many locations online for download, or, of course, you can make the NOC process really easy by just filing the document online.

This page provides frequently asked questions, forms, and other helpful information about Michigan’s Notice of Commencement. Depending on your role, you may need deeper and more specific help with NOCs.

Video: What is a Michigan Notice of Commencement?

Watch this short video that explains important Notice of Commencement requirements in easy to understand terms.

For Property Owners & Construction Lenders

Is a Notice of Commencement Required In Michigan?

Yes. Michigan has a very specific and complicated notice of commencement requirement that applies to all private jobs. There are separate statutory requirements in Michigan regarding Notices of Commencement on residential jobs and Notices of Commencement on non-residential jobs. All private jobs in Michigan require a Notice of Commencement to be filed and posted on the property. Since all private projects require a Notice of Commencement, the only question with respect to whether the NOC is required is whether the project is private or public. See the question on our Expert Center: is a Notice of Commencement still required if working under a National Maintenance Agreement on a construction project in the State of Michigan?

It is important to comply with the NOC rules and requirements, because there are legal consequences to all parties on a construction job if the notice of commencement is not filed.

Who files a notice of commencement?

Michigan statutes are specifically clear that the Notice of Commencement is to be filed by “the owner or lessee contracting for the improvements.” Unlike other states in which the requirement to file the notice is transferred to the construction lender on projects on which a lender is present, Michigan law does not stray from requiring the owner or lessee to file the Notice of Commencement.

Interestingly, despite the fact that Michigan law seems relatively strict with respect to who must file notice of commencement, Michigan specifically allows the affidavit verifying the notice of commencement to be signed by “the agent of the owner or lessee.” Accordingly, since the document may be signed by an “agent” appointed for that purpose, it is not unusual for Michigan property owners to appoint the GC as an agent for signing and filing the notice.

Additionally, while the first section of the Michigan Notice of Commencement statute notes that the notice must be filed by the owner or lessee, and that the identity of the owner’s or lessee’s designee should be included in the content of the notice, a subsequent sub-section contemplates the recording and posting of the notice by the designee.

When must notice of commencement be filed?

In Michigan, the general deadline for filing a Notice of Commencement is “[b]efore the commencement of any actual physical improvements to real property.” This means that property owners or lessee must be on top of their game and very organized so the notice can be filed prior to work.

While the notice is supposed to be filed and then posted prior to the commencement of work on the property, and even contains required language to that effect in the notice itself (“[t]ake notice that work is about to commence” [emphasis added] filing and posting the notice later is allowable.

If the Notice of Commencement is not filed prior to work, the failure “extend[s] the time within which a subcontractor or supplier may provide a notice of furnishing . . . until 20 days after the notice of commencement has been recorded.”

How is the notice of commencement filed?

Michigan statutes state that a Michigan notice of commencement must be filed: “in the office of the register of deeds for each county in which the real property to be improved” and that “the owner, lessee, or designee shall post and keep posted a copy of the notice of commencement in a conspicuous place on the real property described in the notice during the course of the actual physical improvement to the real property.”

Accordingly, this means that two distinct steps must be undertaken:

1. Getting it Filed

Actually delivering it to the register of deeds office in the county where the construction project is located. The actual office may change from county-to-county, and so you’ll need to investigate this. However, Levelset makes this information and recording requirements easy to find – you can find a handy guide to Michigan counties’ recorder of deeds and filing requirements here. You can also file your Michigan Notice of Commencement electronically here.

2. Getting it Posted

The second part of the requirement is that property owners must make sure that the notice of commencement document is displayed in a conspicuous place at the project job site itself.

Can the property owner appoint a designee within the NOC?

Absolutely. In states that have NOC requirements, like Michigan, it’s common that an “Owner’s Designee” can be appointed in the NOC itself. This is specifically allowed in Michigan, and in fact, is a technical requirement. Michigan statutory law notes that a notice of commencement shall include “the name and address of the owner’s or lessee’s designee.” However, subsequent statutory sections allow for the possibility that a designee not be named in the Notice of Commencement, in which case

In general terms, a designee is a party chosen by the owner or lessee to receive notice on their behalf. This can help the owner or lessee manage the receipt of notice documents, as part of the overall management of the project. However, since the owner is the party who would be entangled in any potential lien claim arising on the project, s/he may want to receive notices of furnishing personally to gain visibility and exert some control over the payment process. At the very least the owner should be confident that any designee will benefit the management of the project and not just be a black hole for notice receipt.

How does notice of commencement affect me?

As noted above, a Notice of Commencement is required in Michigan, and, the failure to file and post as required can open up the project, property, GC, and owner to “hidden” mechanics lien claims.

Generally, in order to retain the ability to file a mechanics lien in Michigan, a subcontractor or supplier must provide a notice of furnishing. This document serves to inform the interested parties with whom the sub or supplier has no direct contract that the sub/supplier is providing labor or material to the job and that they have lien rights. If the Notice of Commencement is not filed, there is no requirement for subs and suppliers to provide preliminary notice in order to retain lien rights. Accordingly, the property could be encumbered by a lien filed by a party that the owner or GC didn’t even know was on the job.

Does a Michigan Notice of Commencement expire?

No. Unlike some other states with strict time limits for the effective period of a Notice of Commencement, no such specific limit exists in Michigan.

Does the Michigan notice of commencement need to be notarized?

Yes.

Michigan law requires that a Notice of Commencement contain “[a]n affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.” While a verification is different than a notarization, an affidavit is a sworn statement taken by a notary (or judge, clerk of court, etc.). Since the Notice of Commencement must contain an affidavit, it must be notarized.

Does the NOC need to be released or terminated?

No, in Michigan a notice of commencement does not need to be terminated or released. In fact, there is no specific notice or process set forth by Michigan statutes for the termination of a previously filed notice of commencement.

For Contractors & Suppliers

Do contractors and/or suppliers need to file a notice of commencement?

No. The Notice of Commencement requirement in Michigan is exclusively for the property owners or lessees. Subcontractors and suppliers do not need to file a NOC, but they do have their own preliminary notice requirement — called a notice of furnishing.

Note, however, that as explained in this answer on our Expert Center regarding Michigan notice of commencements, it is not uncommon for a property owner to have their GC file a notice of commencement on their behalf, even if not specifically contemplated by the statutes.

Does the notice of commencement affect my notice of furnishing requirements?

Yes.

According to M.C.L.A. Ch. § 570.1108(10) states that: “Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement has been recorded.”

Accordingly, if the Notice of Commencement is never filed, the deadline for providing the notice of furnishing will never expire.

Does the notice of commencement affect my lien rights?

Not really.

As described above, if the Notice of Commencement is not filed, there is no requirement for subs and suppliers to provide preliminary notice in order to retain lien rights – but there is no specific effect on the lien rights themselves due solely to any notice of commencement. In Michigan, anyone furnishing labor or materials to a construction project has a right to file a mechanics lien if they are unpaid, provided the associated requirements are met. This underlying right, is not affected by the filing (or non-filing) of a Michigan notice of commencement.

The Notice of Commencement, and whether or not it is provided to a potential lien claimant upon request can have an impact on who is ultimately responsible for the the payment obtained by a lien claimant, however. Failing to provide a notice of commencement when requested can also render the party who didn’t provide the notice liable for the costs associated with the requesting party obtaining the information that otherwise could be found on the notice of commencement itself.

Where do I find the Michigan notice of commencement?

A Michigan Notice of Commencement should not be hard to find.

Michigan requires the property owner or lessee to post the Notice of Commencement in a conspicuous place on the property being improved itself. But, if you are a party like a supplier or equipment lessor who may never go to the project site directly, Michigan also provides that a Notice of Commencement must be provided to you upon request.

Frequently Asked Questions about NOCs on Michigan Public Jobs

Is there a notice of commencement requirement for Michigan public projects?

No.

The Notice of Commencement requirement in Michigan is specifically limited to private works of improvement. Public projects are exempt for the notice of commencement filing and posting requirements. Accordingly,

And, as is universally the case, federal projects are governed by the Miller Act, which does not have notice of commencement requirements.

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Michigan Notice of Commencement Form

This free Michigan Notice of Commencement form is used in the state of Michigan to formally designate the beginning of the project. A Michigan Notice...

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Michigan’s mechanic’s lien statute is found within Michigan’s Construction Lien Act, M.C.L.A. Ch. § 570.1101 et. seq. And, the rules and requirements specifically related to the Notice of Commencement process, for general private works and for residential projects, can be found at § 570.1108, and § 570.1108A respectively.

You can read the law directly on the state legislature’s website here, and it is reproduced below. Further, §713.13 is a selected excerpt from the full construction lien statute in Michigan. You can see this full statute on our Michigan Mechanics Lien FAQs page.

Michigan's Notice of Commencement Statute

§ 570.1108. Notice of Commencement of Physical Improvements to Real Property; Recording; Contents; Attachment of Blank Notice; Effect of Inclusion of Incorrect Information; Furnishing of Copy to Subcontractor, Supplier, or Laborer; Posting of Copy of Notice on Property; Failure of Owner, Lessee, or Designee to Record, Post, or Furnish Notice; Failure of Contractor or Subcontractor to Provide Notice; Application of Section to Improvement of Residential Structure

(1) Before the commencement of any actual physical improvements to real property, the owner or lessee contracting for the improvements shall record in the office of the register of deeds for each county in which the real property to be improved is located a notice of commencement, in the form set forth in this section. If all improvements relate to a single project only 1 notice of commencement need be recorded. A subsequent notice of commencement need not be recorded for an improvement to any real property which currently has a notice of commencement recorded in the office of the register of deeds if that recorded notice of commencement contains the same information as the subsequent notice of commencement.

(2) The notice of commencement shall contain the following information:

(a) The legal description of the real property on which the improvement is to be made. A description conforming to section 212 or 255 of Act No. 288 of the Public Acts of 1967, being sections 560.212 and 560.255 of the Michigan Compiled Laws, shall be a sufficient legal description.

(b) The name, address, and capacity of the owner or lessee of the real property contracting for the improvement.

(c) The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee.

(d) The name and address of the owner’s or lessee’s designee.

(e) The name and address of the general contractor, if any.

(f) The following statement:

“To lien claimants and subsequent purchasers:

Take notice that work is about to commence on an improvement to the real property described in this instrument. A person having a construction lien may preserve the lien by providing a notice of furnishing to the above named designee and the general contractor, if any, and by timely recording a claim of lien, in accordance with law.

A person having a construction lien arising by virtue of work performed on this improvement should refer to the name of the owner or lessee and the legal description appearing in this notice. A person subsequently acquiring an interest in the land described is not required to be named in a claim of lien.

A copy of this notice with an attached form for notice of furnishing may be obtained upon making a written request by certified mail to the above named owner or lessee; the designee; or the person with whom you have contracted.”

(g) The name and address of the person preparing the notice.

(h) An affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.

(3) Each copy of the notice of commencement shall have a blank notice of furnishing as described in section 1091 attached to it. The blank notice of furnishing shall be easily detachable from the copy of the notice and need not be recorded.

(4) Incorrect information contained in the notice of commencement furnished by or for an owner or lessee shall not affect adversely the rights of a lien claimant as against the property of that owner or lessee.

(5) The owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(6) A contractor who has been provided with a notice of commencement from the owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the contractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(7) A subcontractor who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the subcontractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(8) The owner, lessee, or designee shall post and keep posted a copy of the notice of commencement in a conspicuous place on the real property described in the notice during the course of the actual physical improvement to the real property.

(9) The owner, lessee, or designee shall provide a copy of the notice of commencement to the general contractor, if any. Failure of the owner, lessee, or designee to provide the notice of commencement to the general contractor shall render the owner or lessee liable to the general contractor for all actual expenses sustained by the general contractor in obtaining the information otherwise provided by the notice of commencement.

(10) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement has been recorded.

(11) Failure of the owner, lessee, or designee to provide, upon written request, the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement actually has been furnished to the subcontractor or supplier.

(12) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been recorded, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(13) Failure of the owner, lessee, or designee to provide the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been provided, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(14) Failure of the owner, lessee, or designee to post or keep posted a copy of the notice of commencement as provided in subsection (8) shall render the owner or lessee liable to a subcontractor, supplier, or laborer who becomes a lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the posting.

(15) Failure of a contractor, who has been provided with a notice of commencement from the owner, lessee, or designee, to provide the notice of commencement upon the request of a lien claimant who has a direct contract with the contractor for an improvement to property shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the notice of commencement.

(16) Failure of a subcontractor, who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor to provide the notice of commencement upon the request of a subcontractor, supplier, or laborer who has a direct contract with the subcontractor shall render the subcontractor liable to such subcontractor, supplier, or laborer for all actual expenses sustained by the subcontractor, supplier, or laborer in obtaining the information otherwise provided by the notice of commencement.

(17) If the owner, lessee, or designee fails to provide, record, and post the notice of commencement as provided in this act and if, after the first actual physical improvement, the contractor by certified mail makes a written request to the owner, lessee, or designee to provide, record, and post the notice of commencement and the owner, lessee, or designee fails within 10 days after receipt of the request to do so, the owner or lessee shall be barred from requiring the contractor to hold the owner or lessee harmless from liens of lien claimants to the extent such lien claims could have otherwise been avoided through proper payment, had such request been complied with. If the contractor pays a valid lien claim at the direction of the owner, lessee, or designee after the owner, lessee, or designee has failed to comply with this section, the owner or lessee shall be liable to the contractor to the extent the lien claim could have otherwise been avoided through proper payment had such request been complied with. This subsection shall not apply if the lien claimant appears on a sworn statement provided to the contractor and the claim of the lien claimant appearing on the sworn statement could have been avoided had payment been made in accordance with the sworn statement.

(18) This section shall not apply to an improvement to a residential structure.

§ 570.1108A. Notice of Commencement of Improvement to Residential Structure; Contents; Attachment of Blank Notice; Effect of Inclusion of Incorrect Information; Furnishing of Copy to Contractor, Subcontractor, Supplier, or Laborer; Posting of Copy of Notice on Property; Failure of Owner, Lessee, or Designee to Provide Notice; Failure of Contractor or Subcontractor to Provide Notice and Name and Address of Lessee

(1) An owner or lessee contracting for an improvement to a residential structure shall prepare and provide a notice of commencement to a contractor, subcontractor, supplier, or laborer who has made a written request for the notice pursuant to this section.

(2) The notice of commencement shall contain the following information:

(b) The name, address, and capacity of the owner or lessee of the real property contracting for the improvement.

(c) The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee.

(d) The name and address of the owner’s or lessee’s designee.

(e) The name and address of the general contractor, if any. The notice of commencement form shall contain the following caption below the line for the general contractor’s name and address: (the name of the person with whom you have contracted to provide substantially all the improvements to the property.)

(f) The following statement in boldface type on the front of the form:

WARNING TO HOMEOWNER

Michigan law requires that you do the following:

1. Complete and return this form to the person who asked for it within 10 days after the date of the postmark on the request.

2. If you do not complete and return this form within the 10 days you may have to pay the expenses incurred in getting the information.

3. If you do not live at the site of the improvement, you must post a copy of this form in a conspicuous place at that site.

You are not required to but should do the following:

1. Complete and post a copy of this form at the place where the improvement is being made, even if you live there.

2. Make and keep a copy of this form for your own records.

(g) The following statement:

“To lien claimants and subsequent purchasers:

(h) The name and address of the person preparing the notice.

(i) An affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.

(5) The owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a contractor, subcontractor, supplier, or laborer, shall prepare and provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the contractor, subcontractor, supplier, or laborer requesting a copy of the notice of commencement. A contractor, subcontractor, supplier, or laborer who requests a notice of commencement from an owner or lessee of a residential structure shall supply a blank notice of commencement form together with the attached blank notice of furnishing to the owner or lessee at the time the request is made.

(8) If the owner, lessee, or designee has received a blank notice of commencement form pursuant to subsection (5) and if the owner or lessee does not currently reside at the real property described in the notice of commencement, the owner, lessee, or designee shall post a copy of the notice of commencement in a conspicuous place on the real property during the course of the actual physical improvement to the real property.

(9) Failure of the owner, lessee, or designee to provide, upon written request, the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement actually has been furnished to the subcontractor or laborer.

(10) Failure of the owner, lessee, or designee to provide the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement actually has been furnished to the laborer, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(11) Failure of the owner, lessee, or designee to post or keep posted a copy of the notice of commencement as provided in subsection (8) shall render the owner or lessee liable to the subcontractor, supplier, or laborer who becomes a lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the posting.

(12) Failure of a contractor, who has been provided with a notice of commencement from the owner, lessee, or designee, to provide the notice of commencement upon the request of the lien claimant who has a contract with the contractor for an improvement to the property shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the notice of commencement. Failure of a contractor to provide the name and address of the owner or lessee in accordance with subsection (6) shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the name and address of the owner or lessee.

(13) Failure of a subcontractor, who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor, to provide the notice of commencement upon the request of a subcontractor, supplier, or laborer who has a direct contract with the subcontractor shall render the subcontractor liable to such subcontractor, supplier, or laborer for all actual expenses sustained by the subcontractor, supplier, or laborer in obtaining the information otherwise provided by the notice of commencement. Failure of a subcontractor to provide the name and address of the owner or lessee in accordance with subsection (6) shall render the subcontractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the name and address of the owner or lessee.

(14) This section shall only apply to an improvement to a residential structure.

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