Michigan Notice Requirements

Contractors — No Preliminary Notice Required

Under Michigan law, general contractors in direct privity with the property owner are not required to serve a preliminary notice to preserve construction mechanic lien rights. However, contractors have significant sworn statement obligations that are critical to maintaining enforceable mechanic lien rights.

Contractors must provide a copy of the Notice of Commencement, or the name and address of the owner or lessee, within 10 days of a written request by a subcontractor, supplier, or laborer who has a direct contract with the contractor. M.C.L.A. §570.1110.

Subcontractors, Suppliers & Laborers — Notice of Furnishing (§570.1109)

Subcontractors, suppliers, and laborers must serve a Notice of Furnishing within 20 days of first delivery or furnishing of labor or materials. M.C.L.A. §570.1109. A supplier to a supplier does not have mechanic lien rights under Michigan law.

Special rules apply to laborers regarding the timing and content of the Notice of Furnishing. Laborers should review the specific statutory provisions carefully.

Failure to timely serve a required Notice of Furnishing can impair the mechanic lien claimant's mechanic lien rights to the extent the owner makes payment, after the notice was due, to the contractor for work performed or material delivered by the mechanic lien claimant.

Sworn Statement Requirement — Critical Compliance (§570.1110)

Michigan's sworn statement requirement is one of the most important and unique aspects of the state's construction mechanic lien law. Before each payment draw, the contractor must collect from each of its subcontractors and suppliers sworn statements identifying amounts owed and paid. The contractor must then provide these to the owner or lessee, along with the contractor's own sworn statement.

A contractor's mechanic lien is not enforceable until the contractor has provided the required sworn statement. M.C.L.A. §570.1110. This creates an ongoing compliance obligation — not just a one-time filing.

Contractors must also provide sworn statements upon request. For laborers, the sworn statement must be given to the contractor within 30 days after wages are due; otherwise, the mechanic lien is invalid.

Public Works — Initial Notice of Claim on Bond (§129.201)

On public municipal projects, if the claimant does not have a direct contractual relationship with the principal contractor, the claimant must give written notice by certified mail to the principal contractor within 30 days after first furnishing materials or labor. M.C.L.A. §129.201 et seq.

The notice must identify the material to be furnished or labor to be performed, identify the party contracting for such labor or materials, and identify the project site.

• Serve within 30 days of first furnishing
• Send by certified mail to the principal contractor
• Identify materials/labor, contracting party, and project site

Public Works — Second Notice of Claim on Bond (§129.201)

If the claimant does not have a direct contractual relationship with the principal contractor, a second written notice must be sent by certified mail within 90 days of last performance. This notice goes to both the principal contractor and the governmental unit.

The second notice must state the amount claimed (with substantial accuracy) and the identity of the party to or for whom labor or material was performed or supplied.

Highway Projects — Notice Requirements (§570.101)

For Michigan Department of Transportation highway projects, no preliminary notice is required for subcontractors, materialmen, or laborers.

However, within 60 days of last performance, the claimant must send notice in duplicate by certified mail to the principal contractor and the officer or agent contracting on behalf of the state, county, city, or other governmental entity.

Consequences of Failing to Serve Notice

Failure to timely serve a Notice of Furnishing impairs mechanic lien rights to the extent the owner makes payment after the notice was due. The mechanic lien claimant may lose rights for the value of payments the owner made in reliance on the absence of a notice.

Failure to provide sworn statements renders a contractor's mechanic lien unenforceable. For laborers, failure to provide the sworn statement within 30 days after wages are due invalidates the mechanic lien entirely.