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Can my subcontractor lien if they did not supply a notice of furnishing in MI?

MichiganBack ChargesLien Deadlines

We are working out credits to a contract with a sub, they are threatening to lien the project. I do not have a copy of a notice of furnishing. They finished contract work in Nov. and were on the jobsite a couple of weeks ago performing warranty work. Do they have any rights to lien?

1 reply

Feb 20, 2020
Generally, in Michigan, any party who does not have a direct contract with the property owner (or owner’s agent) must provide a Notice of Furnishing within 20 days of first furnishing labor or materials to the project. However, if a Notice of Furnishing is given late, it is not fatal to a subsequent lien claim. The failure to give the notice within the proper time period will reduce the lien-able amount by any amount paid by the owner for that work prior to the receipt of the notice. Of potentially more importance, however, is the date the potential claimant finished work in November. Michigan requires that  mechanics lien be recorded within 90 days of last furnishing labor or materials to the project. And, Michigan courts have held that "warranty work" is not an "improvement" subject to mechanics lien protection under the Construction Lien Act, such that the mechanics lien deadline is not extended due to the performance of warranty work. Accordingly, if the contract work was performed more than 90 days ago, any potential lien would be untimely under Michigan law.
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