I have sent NOI. No response.
Do I send Invoice reminders next?
3 replies
Oct 17, 2019
Hello, I'm sorry, but I don't think I understand your question. Do you mean Notice of Furnishing (NOF)? If by NOI you mean a Notice of Intent (to lien a job), that's not a concept used in Michigan. I know of contractors who send notices of intent to lien a job (and even "final" notices), but the Michigan Construction Lien Act doesn't recognize notices of intent. While they may serve as a "shot across the bow" to motivate someone to pay you, recording a construction lien within 90 days of your last date of work is much more effective! To quote the 1920s gangster, Al Capone, “You can go a long way with a smile. You can go a lot farther with a smile and a gun.” (I'm not condoning violence. This is just a metaphor.)
If you wish to clarify your question, I'll take another shot at answering it.
~ Peter
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Oct 17, 2019
If you've sent a notice of intent to lien and haven't gotten a response there are some clear next steps that can help.
What is a notice of intent to lien exactly? Is it worth anything in Michigan?
Peter's above answer is technically correct -- the Notice of Intent to Lien is not a formal concept in Michigan. In fact, NOIs are very infrequently required or legally contemplated by state laws. There are only a small handful of states that require NOIs. You can see a map of the 10 states that have some sort of notice-of-intent-to-lien-type concept going on here. Michigan is not one of them.
But, Peter's answer is also correct that it "may serve as a “shot across the bow” to motivate someone to pay you." That's exactly what these docs are. Here is a good article on that topic (What is a Notice of Intent to Lien and Should I Send One?) And while it may not be as effective as a lien filing itself, these documents are super effective in nearly every state. And it's a good, good idea to escalate slowly toward a mechanic's lien filing if you can (that is, if you have time!).
You don't want to wait too long, because anything you do after the end of your work trying to collect is not going to slow down the clock to file a lien! That clock will tick, tick, tick. You can see the Michigan mechanics lien deadline here, which is: 90 days from last providing materials or labor.
Here is a video about NOIs:
So, what's next? A lien filing? An invoice reminder?
I think that the "invoice reminder" is possible, but is probably not a good next step for you. The "Notice of Intent to Lien" is a more aggressive demand than an invoice reminder, and therefore, an invoice reminder would really be a step-down.
The next step for you is likely the filing of your Michigan mechanics lien. You can learn more about that in this article: How to file a mechanics lien in Michigan.
If you're ready to pull the trigger, you can file your lien through Levelset, or you can consult with a great Michigan construction attorney like Peter to handle your Michigan lien claim.
Good luck!
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Oct 17, 2019
That's great information, Scott. Let me also add that some owners or general contractors have a practice of "talking" someone past their filing deadline. The unpaid subcontractor or supplier is promised payment, repeatedly, given assurances, etc., but the payment never arrives. Then, the other side goes quiet. Then you discover that you've missed the filing deadline! Always keep your filing deadline front and center.