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Lien Amount

MichiganDesign Professional

Deadline to file notice of intent to lien. Total Contract was 26000.00. Total amount paid for the contract is 21000.00. Change orders completed and required for work to be completed was performed in Sept/October 2019 for BP#12(5175.00) and BP#13 (4126.00). Total that has been continually invoiced and not paid. 14301.00 Total. The argument from the Nelson Iron Works owner is that legally they don't have to pay because I have not given them everything. This is the argument now. The final contract amount is for the final area vestibule and I have already given them the drawings for approval which means that I have modeled and produced drawings for their clients review. They now want the rest of the drawings (shop drawings so they can manufacture their product and fulfill their contract. Do I need to give them rest of my work, even though I haven't been paid for anything at all?

1 reply

Apr 20, 2020
Mechanics lien rights are available to the extent that lienable work is performed and payment is owed for that work. So, if you've upheld your end of the contract and if your customer hasn't paid you for your work (as agreed) - then a lien claim should likely be on the table. But, if you haven't upheld your end of the contract then a lien filing might be a bit premature. So, if your contract states that you need to provide your written plans in order to get paid, those plans should generally be exchanged. If sending your written plans isn't part of the contract, then refusing to send the plans shouldn't have any effect on whether or not you're owed payment.

Including change orders in mechanics lien claims

To be sure - work that's been done under a formal change order process can be included in a mechanics lien. Change orders that are properly executed become a part of the contract, so the price of those completed changes can be liened. If the change orders weren't made in accordance with the contract, then the amounts of those changes may be a little less cut and dry. But, often, they'll still be subject to lien if the changes have clearly been approved by an authorized party. Further change order discussion can be found here: Change Order Form — Free Template Download and Best Practices.

Deadline for sending a Notice of Intent to Lien

Michigan doesn't require that a Notice of Intent to Lien must be sent before a mechanics lien can be filed. So, there isn't a deadline for sending a Michigan Notice of Intent to Lien. Still, Notices of Intent can be very useful for getting paid - no owner, GC, or customer wants a lien on their job. What's more, if your customer is causing a payment dispute, notifying the owner with a Notice of Intent can put pressure on your customer to resolve the issue. While deciding when, exactly, to send a Notice of Intent to Lien, it's a good idea to keep an eye on the mechanics lien deadline. In Michigan, that deadline is 90 days after last furnishing labor or materials. So, if the lien deadline is far away, then you could potentially wait a while to send a Notice of Intent. But, it's really up to your discretion and the circumstances of your project. You can learn more about Notices of Intent here: What Is a Notice of Intent to Lien and Should You Send One?

Public vs. Private Projects

As a final note, keep in mind that public projects and private projects have separate payment recovery processes. Mechanics lien claims won't be an option when the project is on publicly owned land. Rather, a payment bond claim will be more appropriate. And, just like private projects - Michigan claimants on public jobs don't actually have to send a Notice of Intent before making a bond claim. You can learn more about public project payment claims in Michigan, here: (1) Michigan Bond Claim Guide and FAQs; and (2) How to Make a Michigan Payment Bond Claim | A Step-by-Step Guide. For more info on how recovery processes change based on project type: The Difference Between Public and Private Projects.
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