Home>Levelset Community>Legal Help>My company worked on a residential project our company name is on the building permit and we held the insurance for the project however a separate party was the GCMS project they were paid by the owner we did not receive our final payment I would like to live in this property is that possible

My company worked on a residential project our company name is on the building permit and we held the insurance for the project however a separate party was the GCMS project they were paid by the owner we did not receive our final payment I would like to live in this property is that possible

Our Company did in a residential remodel . our Company name is on the building permit we held the insurance for the project . we were not in the GC payments were made to another party in which they did not make it in full back to us what are our rights ? can I Lien this project it has been about 60 days since we last worked on this project ..

1 reply

Jan 3, 2019

That's a good question, and I'm sorry to hear you've gone unpaid. First, it's important to note that lien rights are available to Michigan claimants even where the claimant was hired by someone other than the owner on a residential job. Of course, when contracting with someone other than the owner on a Michigan residential project, preliminary notice is required. Regarding the deadline to file - in Michigan, the deadline to file a mechanics lien is 90 days from the date the claimant last provided labor and/or materials to the job. And finally, regarding the amounts paid to the general contractor - Michigan is what's called an "Unpaid Balance" state. This means that when a Michigan sub-tier claimant goes unpaid, that claimant will have the right to lien - but only to the extent that amounts are owed and unpaid to the general contractor. Thus, where a contractor has been paid in full but failed to pay their sub, the sub might not be able to file a valid mechanics lien. However, even if lien rights aren't present, other remedies will be available. What's more, it's worth noting that regardless of whether a valid mechanics lien could be filed, sending the mere threat of a lien filing could work to compel payment. zlien discusses that idea here: What is a Notice of Intent to Lien? For a little more background on Michigan's lien and notice laws, this resource should be helpful: Michigan Lien & Notice FAQs. Further, if you do decide to file a lien, this article may be of use: How to File a Michigan Lien.

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