5 Critical Steps Michigan Contractors Must Take to Secure a Construction Lien
Michigan’s Construction Lien Act gives contractors, subcontractors, and suppliers strong leverage – if you follow the paper trail and deadlines. Most subs/suppliers need a Notice of Furnishing early, everyone must track first/last furnishing dates, use sworn statements and lien waivers correctly, record the Claim of Lien on time, serve it properly, and calendar the one-year enforcement deadline.
Key Takeaways
- Michigan liens are powerful only when the notices and dates are right.
- Most subs/suppliers should serve a Notice of Furnishing early (often within 20 days of first furnishing) to fully protect lien rights.
- A Claim of Lien generally must be recorded within 90 days of last furnishing – waiting is how lien rights quietly die.
- Mistakes with sworn statements, waivers, licensing, residential rules, and “last work” dates are common lien-killers – this is where a Michigan construction lawyer can prevent expensive, irreversible errors.
Table: The Deadlines That Matter
| Step | Typical deadline | Who it hits | What happens if you miss it |
| Notice of Furnishing | Often 20 days from first furnishing | Most subs/suppliers | You may lose leverage for payments already made before the owner receives notice. |
| Record Claim of Lien | Often 90 days from last furnishing | Everyone asserting a lien | Your lien right can expire. |
| Serve recorded lien | Often 15 days after recording | Lien claimant | You can create technical defenses and extra litigation cost. |
| File suit to enforce (foreclose) | Often 1 year from recording | Lien claimant | The lien can expire even if the debt is real. |
The Real-World Problem: Cash Flow and “Slow Pay” on Michigan Jobs
If you build in Michigan long enough, you’ve lived this:
- Work is done.
- Punch list is mostly wrapped.
- The owner or GC is “reviewing paperwork” or “waiting on the lender.”
- Weeks turn into months – and your cash flow takes the hit.
On tight-margin jobs in Metro Detroit and across Michigan, one unpaid project can threaten payroll, bonding capacity, and your ability to bid the next job.
Michigan’s Construction Lien Act (MCL 570.1101 et seq.) is designed to prevent exactly that scenario. But the statute expects a very specific paper trail – and courts can be unforgiving when that trail is wrong.
Step 1: Lock In Project Info and Deadlines on Day One
Short answer: You cannot protect lien rights without accurate project info and a deadline calendar from the moment you start.
What to gather (your “Lien Rights Intake Sheet”)
- Notice of Commencement (if recorded/provided) and all listed contact info
- Exact legal name of the owner/lessee and the owner’s “designee”
- Correct property legal description (not just a street address)
- Your contract, scope, change orders, and extras/credits documentation
- First furnishing date (when you first delivered labor/materials)
- A running log of “last furnishing” activity (see Step 4)
Residential caution: For residential work, confirm licensing and written-contract requirements early. Residential rules can be a trap door if you treat them like commercial work.
Why this matters
Everything that follows depends on:
- Correct owner/designee information
- Correct legal description
- Accurate first/last furnishing dates
Registers of Deeds generally record documents that are properly formatted – they do not police whether your lien is legally valid. So you can record something that looks fine and still lose in court later.
Pro tip: Make “Lien Rights Intake Sheet” completion a non-negotiable part of job setup – just like insurance certificates and W-9s.
Step 2: Serve a Michigan Notice of Furnishing if You’re Not the Owner’s Contractor
Short answer: In Michigan, most subcontractors and suppliers who do not contract directly with the owner/lessee should serve a Notice of Furnishing early (often within 20 days of first furnishing) to fully protect lien rights. General contractors with a direct owner contract are often treated differently.
Who typically needs it?
- Usually needs NOF: subs and suppliers without a direct contract with the owner/lessee
- Often exempt: prime contractor in direct contract with the owner/lessee (verify on your project facts)
The NOF is typically served on the owner’s designee and parties identified in the Notice of Commencement.
What if it’s late?
Late notice does not always mean “no lien,” but it can shrink what your lien can reach – especially if the owner already paid the GC before receiving your NOF (often relying on sworn statements and waivers). In practice, late NOF often means you’re fighting over leftovers instead of the full balance.
Practical company rule: No mobilization on a new job until (1) Notice of Commencement info is in hand, and (2) the NOF is scheduled or sent (if required).
(If your team started work and you are not sure whether the NOF clock is running – or already ran – a short lien “triage call” can confirm your deadlines and the safest next move before you lose leverage.)
Step 3: Use Sworn Statements and Lien Waivers the Right Way
Short answer: Michigan’s lien framework expects sworn statements and lien waivers to support proper payments. If these documents are wrong or inconsistent, payment disputes escalate fast – and your lien enforcement strategy can get tangled.
What a sworn statement does
A sworn statement generally identifies subcontractors/suppliers and amounts paid/owed so owners and lenders can make informed payments and avoid double-paying.
Why it matters to your lien strategy
Depending on the project and the role you are in, failing to provide a required sworn statement can limit your ability to enforce lien rights until you cure the issue.
Also: an intentionally false sworn statement can create serious civil exposure and may trigger criminal risk in extreme cases.
Best practices that prevent problems
- Use a form that tracks the statutory expectations (or close to it).
- Make sure accounting and field teams agree on who is actually on the job, what has/has not been paid, and what changed via change orders/extras.
- Pair every draw with the right waivers: conditional waivers for payments not yet cleared; unconditional waivers only for funds actually received.
Pro tip: Sworn statements are not just compliance – they are a business tool that reduces “mystery” and helps payments move.
Step 4: Record Your Claim of Lien Within 90 Days of Last Furnishing
Short answer: To preserve lien rights, you generally must record a Claim of Lien in the county Register of Deeds within 90 days after your last furnishing of labor/materials for that improvement. Courts tend to treat the deadline as strict.
The biggest trap: “Last furnishing” arguments
This is where many otherwise-valid liens die – because the claimant assumed a minor return trip extended the deadline.
“Last furnishing” usually counts when:
- It is substantial work within the original scope, or an approved change order
- It is necessary completion work clearly contemplated by the contract
- It is work that meaningfully advances the improvement (not a courtesy visit)
“Last furnishing” usually does not count when:
- Minor punch-list touch-ups that are trivial
- Warranty calls that are separate from contract completion
- Work performed mainly to extend lien time (courts dislike this)
What the Claim of Lien should contain (high level)
- Lien claimant identity
- Owner/lessee identity
- Legal description
- First and last furnishing dates
- Contract amount, amount paid, and balance claimed
- Verification by oath (commonly notarized)
Pro tip: Do not cut it close. If the “last furnishing” date is arguable, record earlier and let counsel help you position the facts.
Step 5: Serve the Recorded Lien and Calendar the One-Year Enforcement Deadline
Short answer: After recording, you generally must serve a copy of the recorded lien within a short statutory window (often 15 days) and file suit to enforce the lien within one year of recording – or the lien can expire.
Service: do it cleanly, document it
Service requirements matter most when a lender, title company, or later purchaser is involved. Follow the statutory method(s), keep proof, and do not improvise. (Certified mail and personal service are common methods, but follow the Act.)
Enforcement: the one-year clock is separate from the 90-day clock
Recording protects your lien on paper. Enforcing it (if necessary) usually means filing a lien foreclosure action in circuit court within one year of recording. Many cases settle before a forced-sale scenario, but the deadline itself is often non-negotiable.
Pro tip: When you record, immediately calendar the service deadline, the one-year lawsuit deadline, and interim check-ins at 30/60/90/180 days to evaluate negotiation, mediation, or filing.
Strategic Pro Tips Michigan Contractors Should Know
1) Watch the residential traps
Residential projects can add extra requirements (licensing, written contract terms, and statutory compliance issues). If you are required to be licensed and are not, it can seriously limit lien and even contract remedies. Do not guess – verify.
2) Condo and multi-building projects can multiply your deadline risk
On phased projects, condos, or multiple buildings, “improvement” timing can get complex – sometimes requiring separate tracking by unit/building/phase. Treat these as landmines and bring in counsel early.
3) Use a Notice of Intent to Lien as a pressure valve
Michigan does not always require a Notice of Intent to Lien, but it can be a smart business move:
- Signals seriousness
- Gives a final off-ramp
- Often gets lender/title attention before you record
4) Align liens with an overall collections strategy
A lien is not your only lever. Depending on the job, you may also consider:
- Contract claims
- Bond claims (public work and bonded private projects)
- Joint checks/direct pay agreements
- Negotiated waiver strategy
Frequently Asked Questions About Michigan Construction Liens
Most lien claimants must record the Claim of Lien within 90 days after last furnishing labor or materials for the improvement. Michigan courts often treat the deadline strictly, and “last furnishing” disputes are common. If your last date is arguable, record early and talk to counsel.
Often, the prime contractor in direct contract with the owner/lessee does not serve a Notice of Furnishing, while subs/suppliers commonly must to fully protect rights. The correct answer depends on the Notice of Commencement and your contract relationship – confirm on the specific project.
You may still have lien rights, but late service can reduce what your lien can reach – especially if the owner already paid the GC before receiving your notice (often relying on sworn statements/waivers). Practically, late NOF can turn a strong lien into weak leverage.
Generally, substantial work within scope or approved changes can count; trivial punch-list items or warranty visits often do not. Because the facts matter and case law can be unforgiving, treat “last furnishing” as a legal issue if the deadline is close or disputed.
A lien typically must be verified by oath, which is commonly done through notarization. More important than the stamp is compliance with the Act’s required content and correct property/legal description. Use a compliant form and do not wing it on a high-dollar claim.
Recording is not the end. If not resolved, you generally must file an action to enforce the lien within one year of recording or the lien can expire. You may still have other remedies, but the lien leverage may be gone.
A recorded lien often creates title friction – owners, lenders, and title companies may require it to be resolved, bonded off, or addressed before closing. It does not guarantee payment, but it can shift leverage quickly when financing or a sale is pending.
If you were required to be licensed for the work and were not, you can face serious barriers to lien enforcement and even contract recovery. There are nuances and exceptions depending on facts, so this is a “get counsel involved early” issue.
Costs vary based on complexity, parties, and whether the dispute resolves early. Many contractors use liens as leverage to settle before full litigation, but you should budget for attorney time, filings, service, and potentially expert/accounting support on larger disputes. A short strategy review can usually clarify the cost/benefit quickly.
Not always. On some jobs, bond claims, contract claims, joint checks, or direct-pay agreements are faster and cleaner. Strong contractors treat liens as part of a coordinated collections system, not a last-minute move.
What’s the Next Step?
If you’re a Michigan contractor, subcontractor, or developer and you’re seeing “slow pay,” do not wait until day 89 to get serious.
If you want a practical, fast answer: schedule a lien strategy / deadline triage review so you can confirm:
- Whether a Notice of Furnishing is/was required
- Your defensible first/last furnishing dates
- Whether your sworn statements/waivers help or hurt
- Whether a lien, NOI, bond claim, or contract action is the smartest next lever
About the Author
Richard M. Delonis is a Michigan construction, business, and real estate attorney at Szura & Delonis, PLC (Southfield/Metro Detroit). He advises construction managers, general contractors, subcontractors, developers, and property owners on lien rights, collections strategy, contract disputes, and project-risk issues.
Disclaimer: This article discusses Michigan construction lien concepts in general terms and is not legal advice for your specific project. Deadlines and requirements can change based on project type, notices, contract facts, and “last furnishing” disputes – get Michigan counsel involved if the clock is running.
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