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Should I bother with a Notice of Commencement?

MichiganNotice of Commencement

I just received a Notice of Furnishing from a supplier of a sub that is doing work for my GC on a Home Remodel. I believe the sub wants a copy of the Notice of Commencement. Of course, I didn't know anything about an NOC! What protection am I affording myself if I file an NOC now?

2 replies

Mar 10, 2021

I advise recording a Notice of Commencement (NOC) and providing your GC with a copy to provide to his subs and suppliers. 

Recording a NOC triggers the obligation of a lower tier subs and suppliers (potential lien claimants) to provide you or your Designee with a Notice of Furnishing (NOF). This will tell you who they are and what they're furnishing to your project. You want this information when you're looking at your GC's sworn statement. A sworn statement is a list of your GC's subs and suppliers who are furnishing labor and materials to the job. If someone sends you a NOF, but they're not on your GC's sworn statement, that's a red flag. Find out why they're not listed.  

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Mar 18, 2021
As a homeowner you can protect yourself from extra costs if you file a notice of commencement and from construction liens if you insist that your GC give you a "sworn statement" prior to or with all invoices for full or partial payments.
 
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