• Michigan is an UNPAID BALANCE lien state.
• Section 107 of the lien statute provides:  “Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property shall have a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property”.
• A non-residential owner or lessee must record notice of commencement with the county register of deeds before work starts. If an owner or lessee fails to record a Notice of Commencement, this failure extends the time within which a subcontractor or supplier must serve a Notice of Furnishing until 20 days after the Notice of Commencement is actually provided; 30 days for laborers.
• Only licensed contractors have lien rights on projects occurring on residential property. With the exception of plumbing, electrical and mechanical subcontractors, which must be separately licensed, the contractor or subcontractor on such projects is required to be licensed as a "residential builder" or "residential maintenance and alteration contractor." An unlicensed lien claimant, or a lien claimant with an expired license, will not have lien rights, will be liable to the property owner and could be found guilty of a misdemeanor or felony. These licensing requirements apply to both individual people and business entities.
• Residential owners must provide a notice of commencement upon receiving a written request for such via certified mail from any contractor, subcontractor, supplier or laborer. Failing to provide this notice gives subcontractors and materials suppliers more time to provide notice of furnishing, until 20 days after the notice of commencement is provided to the sub. For laborers, the extension is greater, until 30 days after the notice of commencement is furnished.
• Additional remedies may be available under the state’s Construction Trust Fund statutes.

Notice Speed Bumps

• No Notice of Furnishing is required if the contractor or supplier has a direct contract with the Owner or Lessee of the real property.
• A subcontractor or supplier’s failure to provide a Notice of Furnishing within the first 20 days of work will not defeat their right to a lien, but it may reduce the value of the lien.  A subcontractor or supplier’s delay in providing a Notice of Furnishing will reduce the lien by the amount that the owner or lessee paid for the work prior to receipt of notice. However, such payments by the owner or lessee must have been made in reliance on a contractor’s sworn statement or waiver of lien.

Mechanic’s Lien Speed Bumps

• The 90-day period for recording a Claim of Lien in Michigan begins on the date of completion of the original installation work and is not extended by the later performance of warranty work.

Lien for Improvement of Oil & Gas Wells

• Liens extends to the oil and gas leasehold, oil or gas well, lease, pipeline, buildings, fixtures and any things of value furnished. Lien must be recorded in the office of Register of Deeds in the county where the property is located within six months from the date on which the last material was furnished or labor performed. Must be enforced within one year or lien will expire.

• Claimants must be supplying labor or materials to the principal contractor or his subcontractors in the prosecution of the work provided for in the contract.
• State highway contracts are governed by MCL 570.101 et seq., The Stature requires that the board of officers or agents of the governmental unit post a payment bond regardless of the amount of the contract [MCL 570.101]. A claimant who provides labor only is not required to furnish prior notice of the claim.
• "A subcontractor or supplier must provide written notice to the board of officers or agents contracting on behalf of the state (usually the Michigan Department of Transportation) in duplicate, within 60 days after last furnishing labor or material" [MCL 570.102]. "The notice must state the job site, the claimant’s capacity, the party with whom the claimant contracted, the amount due and owing, and a statement that the claimant intends to rely upon the bond". [MCL 570.102].
• Suppliers to suppliers do not have rights against the payment bond.