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Do I have any lein rights

I'm a commercial painting sub contractor working at a U of M building in Michigan. I'm completely done with the project since December 31, 2021 and have been paid for all except our 10% retention. The General Contractor is saying that the owner will not pay out retention until two change orders are dealt with for another sub contractor (not us). This project started back in early 2021 and I don't see that the Office Manager at that time sent a Notice of Furnishings. Do we have any lein rights to collect our balance?

2 replies

Apr 27, 2022

UofM is a quasi governmental/state owned organization. Construction lien rights do not attach to governmental buildings. Even if you had a right to a construction lien, if you finished the project your lien rights were extinguished 90 days from the last date of work anyway. However in lieu of a construction lien, the general contractor should have put up a performance bond. Ask the general for a copy of the performance bond and make a claim. Further, read your contract carefully unless the contract allowed a retention right of your money for a third party's actions.

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Apr 28, 2022

The University of Michigan is considered a public entity and not subject to construction liens. The General Contractor for your project should have furnished the U/M with a payment and performance bond. Request the payment bond. Read the bond. You are probably a claimant under the payment bond and can send a letter demanding payment to the surety, a copy to the U/M, and General Contractor. Send your demand letter by certified mail, and return receipt (green cards). Let me know if you get stuck.

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