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What is the process in which to file a lien on unpaid work by a subcontractor

MichiganLien Deadlines

I am a subcontractor and have not been paid the final balance for my work.

7 replies

Apr 21, 2021

There are three different answers to your question depending on whether the project is on residential property, commercial property, or on a government or municipal owned piece of property.

My recommendation is that you call an attorney.  

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Apr 21, 2021
The property is a commercial property.
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Apr 21, 2021

I agree, without more information this question is fairly open-ended. The requirements and rights can change depending on the type of project, and your position on the payment chain. 

However, I can point you in the direction of some resources that may prove helpful:

Determining your project type and role

Private project (mechanics lien) resources

Public project (payment bond claim) resources

Feel free to follow up here with any additional information.

Good luck!

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Apr 21, 2021
We are the subcontractors to a commercial property. The general contractor has been slow to pay and now that the job is finished is not responding to any communication. I am unfamiliar with the process to file a mechanical lien. I don't believe we have filed a notice of furnishing. There was a signed contract at the beginning of the job stating what work was expected to be done and the amount that was to be paid for the work. I know that I can file a notice of furnishing late but not sure how that effects the actual lien. I believe that I don't have to file an intent to file a lien. But would that be recommended to maybe encourage them to pay or make them mad and not want to pay? Either way I need help filing and in the correct order so that it doesn't get thrown out and end up costing more money.
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Apr 21, 2021
There are no "mechanic's" liens in Michigan. All lien rights are governed by the Construction Lien Act. The Act includes statutory "forms" for a Notice of Furnishing, a Notice of Lien, and Conditional and Unconditional Waivers of Lien. You should be able to get blank, fillable forms from your office supply store or online. There is no deadline, in the statute, for filing a Notice of Furnishing. However, unless you file the Notice of Lien within 90 days of last providing materials or labor on a project, you have no lien. Likewise, if you fail to bring an action to foreclose on your lien within one year of filing the Notice of Lien, you have no lien. Either way, you would still have the right to bring a claim in court for breach of contract. Each of the forms include instructions regarding who needs to be served with a copy and filing with the Register of Deeds of the County where the property is located. Again, if you have never done this before, you should hire an attorney to help you.
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Apr 21, 2021
In Michigan it does not matter if it is a residential or a commercial property the procedure to file a lien is almost exactly the same. WITHIN 90 DAYS OF YOUR LAST DATE OF WORK AT THE SITE YOU MUST FILE A LIEN! If you miss the 90 day mark you lost your lien rights (although you can file the lien and still screw up the title a bit). All other time deadlines in the Lien Act are flexible (such as the time for filing a notice of furnishing) and are flexible -- except of the contractor and owner followed special procedures which they rarely follow. There is a difference between private property and government jobs though since the Michigan Construction Lien act does not allow a private entity to file a lien on publicly owned property. In that case there must be a construction bond involved and you need to follow the claims process against the bond.
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Apr 28, 2021
That is way too broad a question for an email reply because there are so many variables. Talk to a construction attorney in your county.
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