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Does the general contractor have to supply the homeowner with a copy of the Sworn Statement that is provided to the financial institution for draws?

MichiganPayment Disputes

I am building a home. The credit union wants my signature for a draw to pay the general. The general has supplied the credit union with a sworn statement. I requested a copy of the sworn statement from the general. He refused and stated that he hasn't provided a sworn lien statement to a homeowner in 30 years.

1 reply

Jan 4, 2019

I'll assume this is in reference to the Sworn Statement that's required under § 570.1110 of the Michigan Construction Lien Act. Under that section, when payment is due to the contractor, that contractor must provide a sworn statement when requesting payment. However, under § 570.1110(1), a contractor shall provide a sworn statement to the owner (a) when payment is due and (b) when the owner demands it. Where a lender is involved in a project, often, that lender will demand that the contractor provide them with a sworn statement - and a lender make make that request on an owner's behalf. Still, if an owner also requests that sworn statement - the owner is entitled to receive it. Plus, merely asking for a copy of a sworn statement that's already been produced doesn't seem like it should be that much of a burden or concern. Finally, asking the lender for a copy of that sworn statement might also get the job done - the owner is entitled to that information anyway, and whatever issue a GC may have with providing that statement to the owner might not be present with the lender.

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