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Under Michigan's Little Miller Act, almost every public project (i.e. funded by the state, local, or municipal government entity) the prime contractor is required to post a payment bond. If unpaid on a public works project, a party can make a claim against that payment bond.
As noted above, a Notice of Commencement is required in Michigan, and, the failure to file and post as required can open up the project, property, GC, and owner to ?hidden? mechanics lien claims.
Note: if the project is residential, a general contractor may only file a lien if there is a written contract with the property owner.
Even though sending a Notice of Intent to Lien is an optional (not required) step in the state of mi, they are frequently successful at producing payment (without having to take the next step of filing a lien).
A Notice of Intent to Lien (NOI) is a document sent to notify certain parties on a construction project of the consequences of non-payment. An NOI is a warning that if payment isn't made, the claimant intends to file a mechanics lien.
Subcontractors of any tier have mechanics lien rights On residential projects (with 2 or less units), a general contractor only has lien rights if there is a written contract with the property owner.
(1) Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property has a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property, as described in the notice of commencement given under section 108 or 108a, the interest of an ...
How long you have to file a Michigan construction lien. You must file a construction lien in Michigan within 90 days of the date you last worked on the property or supplied materials for the improvement project. Failing to meet this strict deadline leaves you without legal recourse.