CONSTRUCTION LIEN CHECKLIST
This brochure offers a brief outline of major residential construction lien elements
in Michigan. This checklist is not a substitute for legal advice or for a thorough
understanding of the complex lien law as it applies to a particular case. If you have
comments or suggestions about our brochures, please let us know. You may write us at
the address below or e-mail us at: mjh@mhoulihan.com
Copyright 1997 Michael J. Houlihan
General Contractor (Contracts directly with Owner)
- Residential Job (1 & 2 Family)
- Written Contract with Statutory Language
- Contractor has License
- Uses Written Change Orders
- Receives Notice of Commencement from Owner (Must be residential form with special language. If requesting you must provide forms.)
- Owner Posts Notice of Commencement (If he doesn't reside on the property.)
- Gives copy of Notice to Subcontractors & Suppliers with Sample Notice of Furnishing
- Provides Sworn Statements & Waivers with Pay Requests
- Records Claim of Lien within 90 days of Last Work (not warranty work)
- Serves Copy of Claim on Designee within 15 Days of Recording Personally or Certified Mail
- Prepares Proof of Service of above
- Suit to enforce Lien must be started within One Year of Lien Recording
Subcontractor/Supplier (Contracts with General)
- Has a Current License if one is Required or Pays $50.00 fee to Homeowner's Lien Recovery Fund
- Confirm
1. General has Written Contract
2. General's Written Contract has Statutory Language
3. General Contractor is Licensed
- Receive Notice of Commencement (If you request you must provide forms.)
- Serve Notice of Furnishing on Designee and General Personally or By Certified Mail within 20 days of first furnishing - not before.
- Prepare Proof of Service of Notice of Furnishing (Keep this.)
- Submit Conditional Partial Waivers with Pay Requests 1. No Blank Waivers 2. No Unconditional Waivers unless you've been paid 3. Provide Full Waiver only when paid in full
- Record Claim of Lien within 90 Days of Last Work (not warranty work)
- Serve Copy on Designee within 15 Days after Recording
- Prepare Proof of Service
- Begin Suit Within One Year of Recording Lien
Owner
- Receives a Written Contract with the Contractor
1. Checks for Builder's License with State
2. Gets Insurance Certificates from Contractor's Insurance Agent
3. Reads Contract. (It means what it says.)
- Gives the Contractor a Notice of Commencement
- Posts the Notice
- Requires Written Change Orders
- Receives Notices of Furnishing from Subcontractors & Suppliers
- Requires Sworn Statements from Contractor and Lien Waivers from Contractor and all subcontractors and suppliers before paying anything
- Keeps a Diary of the Job
- Requires Final Sworn Statement and Waivers from all Before Making Final Payment
- Uses a Title Company or Lawyer for Construction Draws for Complex Projects. (That's what the bank does.)
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MICHAEL J. HOULIHAN
539 S. Garfield, P.O. Box 28
Traverse City, Michigan 49685-0028
Tx 231-941-4646 Fax 231-941-4649
Regular Office Hours 9:00-12:00 1:00-5:00 Mon - Fri
One-half block South of Eighth on Garfield, Traverse City
Email us at: mjh@mhoulihan.com