I am in the process of building a home and one of our contractors is not returning a signed lien waiver for a payment we made to him. He completed the rough in electric work, charged us for materials that have not been delivered. He cashed a 10,000 check now will not sign and return the waiver. Is there any action that can be taken?
Under Michigan's lien statute, Section 115(3), a lien claimant who receives a partial payment for his or her contract shall provide the owner a partial unconditional waiver of the lien for the amount for which the lien claimant has received if the the owner requests the partial waiver. A lien claimant under the statute is a person having a right to a construction lien, not necessarily someone who has recorded a lien. Your electrican is a "lien claimant."
So, that's a long way of confirming that your electrician must provide you with a partial unconditional waiver of lien to the extent of your payment. If you have not formally requested the lien waiver, do so now and do it in writing.
Unfortunately, you can't force your electrician to sign a partial lien waiver. You can request that he (or she) do so before you make another payment and you should retain copies of all canceled checks that document payments made. Lien waivers are a normal part of the building process and your contractor shouldn't find the request unusual or burdensome. Its simply acknowleding partial payment.
If you're concerned about whether your contractor is paying his subcontractors and/or suppliers, you can also request the contractor provide you with a sworn statement before making another payment. A sworn statement will detail who the contractor's subcontractors and suppliers and who has been paid from previous payments and who remains unpaid. Pay close attention to people your contractor shows are owed money on the sworn statement. Request lien waivers from anyone who is listed on the sworn statement.