That distinction matters when a payment dispute is approaching the 90-day lien-recording deadline or the separate one-year enforcement deadline. Neither clock stops while the parties sort out sworn-statement paperwork.

The Short Answer

Under MCL 570.1110, a contractor must provide an owner or lessee with a sworn statement when payment is due, when the contractor requests payment, and upon demand. If the contractor fails to provide the required statement before recording its construction lien, the lien remains valid. However, the contractor is not entitled to payment and may not file a complaint, crossclaim, or counterclaim to enforce the lien until the statement is provided.

A subcontractor also has sworn-statement duties, but the statutory consequence is narrower. If a subcontractor fails to provide the owner-requested statement required by subsection (2) before recording its lien, the lien remains valid, but the subcontractor may not commence lien-enforcement litigation until the statement is provided. Subsection (10) does not impose the contractor’s separate payment bar on subcontractors.

Key Points

• A sworn statement is different from a pay application, lien waiver, and notice of furnishing.
• Contractors and subcontractors have different recipients, triggers, and statutory consequences.
• Providing a missing statement does not extend the 90-day lien-recording deadline or the one-year enforcement deadline.
• The statement must be accurate when signed. A false statement given with intent to defraud can create criminal exposure.
• Proof of delivery should remain in the project file with the statement and the records used to prepare it.

What a Michigan Sworn Statement Discloses

A sworn statement gives the owner, lessee, or contractor information about unpaid participants in the portion of the project covered by the statement. The statutory form identifies subcontractors and suppliers with whom the signer contracted for the improvement. It also identifies directly contracted laborers whose wages, fringe benefits, or withholdings are due but unpaid.

For each listed subcontractor, supplier, or laborer, the form calls for information such as the total contract amount, the amount already paid, and the amount currently owing. The statutory form includes a balance-to-complete field but marks that field optional. Materials taken from a contractor’s or subcontractor’s ordinary inventory and not specifically purchased for the project need not always be listed.

The signer swears to the statement before a notary. The form should therefore be prepared from current project records, not reconstructed from memory at the notary’s counter.

What a Sworn Statement Is Not

A pay application. An AIA G702, invoice, or other billing document requests payment. It does not replace the statutory sworn statement.

A lien waiver. A lien waiver relinquishes lien rights to the extent stated in the waiver. A sworn statement discloses project-payment information. The documents often travel together, but each serves a different purpose. See our guide to Michigan construction lien waivers.

A notice of furnishing. A subcontractor or supplier generally serves a notice of furnishing early in the project to preserve lien rights. That notice ordinarily must be served within 20 days after first furnishing labor or material, subject to the statute’s recipient rules and exceptions. See MCL 570.1109.

When Contractors Must Provide a Sworn Statement

A contractor must provide a sworn statement to the owner or lessee when payment is due, when the contractor requests payment, and whenever the owner or lessee demands one. Because most draw packages request payment, including a current sworn statement with each draw is a sound office practice. It also avoids a later dispute about whether a particular payment request triggered the statute.

The sworn statement should reflect the project’s current accounts-payable information on the date it is signed. If the contract or project platform imposes additional submission requirements, the contractor should satisfy those requirements as well and keep evidence of delivery.

When Subcontractors Must Provide a Sworn Statement

A subcontractor must provide a sworn statement to the contractor when payment is due to the subcontractor or when the subcontractor requests payment. A subcontractor must also provide one to the owner or lessee upon demand, subject to the residential-project condition stated in MCL 570.1110(2) and (6), when applicable.

The distinction between these obligations is important. The lien-enforcement bar in subsection (10) applies to a subcontractor that failed to provide the owner-requested statement required by subsection (2) before recording its lien. Subsection (10) does not use the same language for a statement owed to the contractor under subsection (3).

How Missing Statements Affect Contractors and Subcontractors

The table addresses the lien-specific consequences in MCL 570.1110(9) and (10). Other contractual, statutory, or factual issues may affect payment and lien rights.

Correcting a Missing Statement Without Losing the Deadline

The statute makes the sworn-statement restrictions last until the required statement is provided. That makes the defect potentially correctable, but it does not make delay safe. A claimant generally must record a claim of lien within 90 days after its last furnishing of labor or material under its contract. See MCL 570.1111. Proceedings to enforce the lien generally must begin within one year after the lien was recorded. See MCL 570.1117. Providing a sworn statement does not restart either period.

A claimant should therefore provide the required sworn statement before commencing lien-enforcement litigation. If litigation has already been filed, counsel should evaluate the procedural consequences immediately rather than assume later delivery automatically validates the existing claim. Dismissal, amendment, or refiling questions can become critical as the one-year period approaches.

How Owners Use Sworn Statements

A sworn statement also gives an owner tools for controlling payment risk. Under MCL 570.1110(7), an owner or lessee may withhold from the contractor amounts shown as unpaid to subcontractors, suppliers, and laborers. On the contractor’s written demand, the owner or lessee must withhold those amounts. The owner or lessee may also pay listed parties directly, with those payments treated as payments to the contractor. The statute requires advance notice to the contractor in certain first-direct-payment circumstances.

The Act also permits specified parties to rely on a sworn statement in certain circumstances. That reliance generally does not defeat the claim of a subcontractor, supplier, or laborer who properly served a notice of furnishing or was excused from serving one under the statute.

In Vugterveen Systems, Inc. v. Olde Millpond Corp., 454 Mich. 119, 131-132; 560 N.W.2d 43 (1997), the Michigan Supreme Court found substantial compliance with the notice-of-furnishing requirement where the owner received actual information identifying the subcontractor, its work, and the property. The owner could not rely on a sworn statement to avoid the lien. The decision is fact-specific; it is not a substitute for timely statutory notice.

Why Accuracy Matters

A contractor or subcontractor who desires to draw money and gives or causes a required false sworn statement to be given with intent to defraud can face criminal penalties under MCL 570.1110(11). The penalties depend on the amount involved and prior convictions; the highest stated tier begins at $20,000 or more and can carry imprisonment of up to 10 years. Amounts involved in a course of conduct during a 12-month period may be aggregated.

Project funds may also be subject to the Michigan Builders Trust Fund Act. That statute treats certain money paid to a contractor or subcontractor in the building-construction industry as trust funds for designated beneficiaries. See MCL 570.151. A trust-fund claim has its own elements, but inaccurate payment reporting can become significant evidence in a broader payment dispute.

Anyone who discovers an error should preserve the supporting records, correct the statement promptly, and provide the corrected version to the proper recipients. A material or potentially intentional discrepancy should be reviewed with counsel before further payment requests or litigation.

A Practical Sworn Statement Protocol

1. Identify your statutory role. Determine whether the company is acting as the contractor, a subcontractor, a supplier, or in more than one role on the project.
2. Calendar the notice of furnishing. If a notice is required, serve it within 20 days after first furnishing on the recipients identified by the Construction Lien Act. Review our five critical Michigan construction lien steps.
3. Use a current statement with each draw. This practice ordinarily captures contractor and subcontractor payment-request triggers and reduces later disputes.
4. Reconcile against the books. Confirm each listed party, contract amount, amount paid, and amount currently owing against the project ledger and actual disbursements.
5. Review before notarization. The person signing should understand the information and verify that the statement is accurate as of the stated date.
6. Preserve delivery evidence. Keep the signed statement, transmittal email or platform receipt, and the records used to prepare it in the project file.
7. Audit before recording or suing. Before recording a lien or commencing enforcement, confirm that all required notices, statements, service steps, and deadlines have been satisfied.

Frequently Asked Questions

Is a sworn statement the same as a lien waiver?

No. A lien waiver relinquishes lien rights to the extent stated. A sworn statement discloses information about project participants and amounts paid or owing. Providing one does not satisfy the other.

Can a claimant record a lien before providing a sworn statement?

A missing required sworn statement does not, by itself, invalidate the recorded lien under MCL 570.1110(9) or (10). The consequences differ by claimant: a contractor can face both a payment bar and an enforcement-filing bar, while the subcontractor provision imposes an enforcement-filing bar for the subsection (2) failure. The 90-day recording deadline still applies.

Can a missing statement be provided after the lien is recorded?

The statutory restriction lasts until the required statement is provided, but other deadlines continue to run. The safer course is to furnish the statement before filing an enforcement action. A claimant that has already filed suit should obtain immediate advice about the procedural effect and the remaining one-year period.

What should a business do if a sworn statement contains an error?

Review the supporting records, preserve the original, prepare an accurate corrected statement, and send it promptly to the proper recipients with proof of delivery. Seek legal advice if the discrepancy is material, affects a payment request, or could be viewed as intentional.

Talk to a Michigan Construction Lawyer

Szura & Delonis, PLC represents contractors, subcontractors, suppliers, and developers in Michigan construction-payment and lien disputes. We serve clients in Oakland, Wayne, Macomb, and Washtenaw Counties from our Southfield office.

If you are carrying an unpaid balance or are unsure whether the project’s sworn statements, notices, waivers, or lien deadlines are in order, call (248) 716-3600 or contact us to arrange a construction-lien and payment-dispute review.

Disclaimer. This article provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Construction-lien rights depend on the claimant’s role, contracts, project type, furnishing dates, notices, sworn statements, service, and other facts. Consult qualified counsel about a specific project or deadline.

About the Author

Richard M. Delonis is a Michigan construction, business, and real estate attorney at Szura & Delonis, PLC in Southfield, serving clients throughout Metro Detroit. He advises construction managers, general contractors, subcontractors, suppliers, and property owners on lien rights, collections strategy, contract disputes, and project-risk issues.

Direct answer: Contractors lose Michigan construction lien rights most often by missing one of three deadlines under the Construction Lien Act, MCL 570.1101 et seq.: serving a Notice of Furnishing within 20 days of first work (MCL 570.1109), recording a Claim of Lien within 90 days of last furnishing labor or material (MCL 570.1111), or filing suit to foreclose within 1 year of recording (MCL 570.1117). Failing to record the claim of lien timely or failing to file suit timely will cause contractors to lose their lien outright.

What a Construction Lien Protects

Michigan’s Construction Lien Act, MCL 570.1101 et seq., gives contractors, subcontractors, suppliers, and laborers who improve real property the right to record a lien against that property if they are not paid. Done correctly, a construction lien gives you leverage that an ordinary breach of contract lawsuit does not: it clouds the owner’s title, complicates any sale or refinance, and often gets attention from an owner who has been ignoring your invoices. Done incorrectly, or too late, it may be unenforceable.

The Act is deliberately technical. Courts apply its deadlines strictly because the lien remedy is a creature of statute, not common law, and because it affects innocent third parties like lenders and title companies who rely on the public record.

Deadline One: The Notice of Furnishing

A Notice of Furnishing is a preliminary written notice—not the lien itself—that identifies a subcontractor, supplier, or laborer furnishing an improvement to real property. For claimants required to provide one, timely service is an important step in protecting construction-lien rights under the Michigan Construction Lien Act.

A subcontractor or supplier generally must serve a Notice of Furnishing on the designee and the general contractor, if any, named in the Notice of Commencement. If no designee is named, or the designee has died, the notice must instead be served on the owner or lessee named in the Notice of Commencement. MCL 570.1109 does not ordinarily require service on the construction lender, although sending the lender a courtesy copy may be prudent and service on the lender is required if the lender is also the named designee.

The notice must substantially follow the statutory form and generally must be served personally or by certified mail within 20 days after the subcontractor or supplier first furnishes labor or material. When certified mail is used, service is complete upon mailing. Keeping the mailing receipt and a copy of the notice is essential because a subcontractor’s, supplier’s, or laborer’s later Claim of Lien generally must include proof that the Notice of Furnishing was served.

A person who contracts directly with the owner or lessee is a “contractor” under the Act and is not required to provide a Notice of Furnishing to preserve lien rights arising from that direct contract. This exception is based on the contractual relationship—not merely on whether the person is informally called the “general contractor.” The exception also does not eliminate the contractor’s other obligations under the Act, including applicable sworn-statement, Claim of Lien, written-contract, and licensing requirements.

Different rules apply to laborers. A laborer generally must provide a Notice of Furnishing within 30 days after wages were contractually due but were not paid. Unpaid fringe benefits and wage withholdings are governed by a separate deadline: the fifth day of the second month following the month in which those amounts became contractually due but unpaid. A laborer’s failure to give the required notice to the designee can defeat the lien for the affected wages, fringe benefits, or withholdings. Failure to provide the notice to the general contractor does not itself defeat the laborer’s lien, but the laborer may be liable for actual damages caused to the general contractor.

Late service has a more nuanced effect for subcontractors and suppliers. Under MCL 570.1109(5), work performed and materials furnished after service of the late notice remain potentially lienable. Under MCL 570.1109(6), work and materials furnished before service also remain potentially lienable, except to the extent that the owner or lessee made qualifying payments to the contractor pursuant to a contractor’s sworn statement or a lien waiver covering the claimant’s work or materials. Michigan law therefore does not impose a simple rule limiting a late claimant to the work performed during the 20 days immediately preceding service.

For example, if a subcontractor serves its notice late but the owner has not made an intervening payment that qualifies under MCL 570.1109(6), the subcontractor may still be able to assert a lien for both pre-notice and post-notice work. If the owner paid the contractor before receiving the late notice, and the payment was made pursuant to an adequate sworn statement or lien waiver covering the subcontractor’s work, the subcontractor’s lien for the pre-notice work may be reduced—and, in some circumstances, eliminated. Timely service avoids leaving the result dependent on the project’s payment history and documentation.

The Notice of Commencement rules also differ between nonresidential and residential projects. For a nonresidential improvement, the owner or lessee generally must record a Notice of Commencement before the improvement begins. Failure to record it extends the subcontractor’s or supplier’s Notice of Furnishing deadline until 20 days after the Notice of Commencement is eventually recorded. A failure to furnish a copy in response to a proper written request creates a separate extension until 20 days after the copy is actually furnished.

Residential projects are governed by MCL 570.1108a. The owner is not generally required to record the residential Notice of Commencement. Instead, the owner or lessee must prepare and provide it after receiving a proper written request by certified mail; the requester must supply the statutory blank Notice of Commencement and attached blank Notice of Furnishing forms. If the owner, lessee, or designee fails to provide the residential Notice of Commencement as required, the Notice of Furnishing deadline is extended until 20 days after the notice is actually furnished.

A County Register of Deeds search is useful on a nonresidential project, but it is not a complete test on a residential project. The safer practice is to request the applicable Notice of Commencement promptly, identify the correct designee and general contractor, and serve the Notice of Furnishing as early as possible rather than relying on a statutory extension.

Finally, serving a Notice of Furnishing does not by itself perfect a construction lien. Among other requirements, a Claim of Lien generally must be recorded within 90 days after the claimant’s last furnishing of labor or material, and a copy of the recorded claim and associated proof of service must be served as required by MCL 570.1111. Timely notice is one piece of the statutory process, not the entire process.

Deadline Two: Recording the Claim of Lien

 A Claim of Lien must be recorded with the register of deeds in the county where the property sits within 90 days after the last date you furnished labor or material, under MCL 570.1111. This is a hard deadline measured from your last day on the job, not from your invoice date, your last payment application, or the date the owner finally stopped answering emails.

Ninety days can pass quickly when a contractor or supplier is tracking several projects with staggered completion dates. Under MCL 570.1111(1), the Claim of Lien must be recorded within 90 days after the claimant’s last furnishing of labor or material for the improvement pursuant to the claimant’s contract. The payment dispute, invoice date, project closeout, certificate of occupancy, or owner’s refusal to pay does not ordinarily determine when that period begins.

Later work does not automatically establish a new last-furnishing date merely because someone returns to the project. The controlling question is whether the later work constituted a qualifying improvement. Work that completes unfinished original-contract obligations, approved additional work, or a separately contracted repair that adds value may establish a later last-furnishing date. By contrast, warranty work performed merely to correct deficiencies in previously completed work generally does not extend the deadline—even if the callback is legitimate and performed in good faith.

The distinction does not turn simply on whether the work was called “punch-list,” “corrective,” or “warranty” work, or whether it was minor. Michigan courts examine whether the later work conferred value beyond the value furnished when the original work was completed. A contractor should therefore avoid relying on a later service call or corrective visit to make an otherwise late lien timely.

The safer practice is to calendar the 90-day deadline from the earliest reasonably supportable date on which the claimant completed its qualifying contractual work or last furnished qualifying material. Any decision to use a later date should be supported by contemporaneous records showing what was performed, why it remained part of the contracted improvement, and how it added value rather than merely correcting earlier defective work. Because Michigan requires strict compliance with the 90-day recording deadline, prudent claimants should also establish an internal deadline well before day 90.

Recording the Claim of Lien is not the last procedural step. Under MCL 570.1111(5), the claimant must, within 15 days after recording, personally serve or send by certified mail, return receipt requested, a copy of the Claim of Lien and a copy of any proof of service recorded with it to the designee at the address stated in the Notice of Commencement. If no designee was named, or the designee has died, service must be made on the owner or lessee named in the Notice of Commencement. When certified mail is used, service is complete upon mailing.

For a subcontractor, supplier, or laborer, the recorded Claim of Lien generally has attached proof of service of the Notice of Furnishing, and a copy of that recorded proof should accompany the Claim of Lien. A contractor who contracted directly with the owner or lessee generally was not required to serve a Notice of Furnishing and therefore may have no such proof to include.

Failure to comply with the 15-day service requirement can create a defense to enforcement and invite litigation over substantial compliance, actual notice, and prejudice. Although some defects involving service or proof of service may not automatically invalidate a lien, a claimant should not assume that complete nonservice will be excused. The claimant should preserve the certified-mail receipt or personal-service documentation because proof of this post-recording service must be attached to any complaint, cross-claim, or counterclaim seeking to enforce the lien.

Finally, a Claim of Lien does not remain enforceable indefinitely. Proceedings to foreclose and enforce the lien generally must be commenced within one year after the Claim of Lien was recorded under MCL 570.1117(1).

Deadline Three: Foreclosing the Lien

Recording a lien only preserves your claim; it does not collect your money. Under MCL 570.1117, you must file a lawsuit to enforce and foreclose the lien within 1 year after the date the Claim of Lien was recorded, not 1 year from your last day of work. Miss this filing deadline and the lien expires by operation of law, even though it was validly recorded.

This distinction matters because contractors sometimes confuse the 90-day recording deadline with the foreclosure deadline and assume they have a full year from the job’s completion. You do not. The foreclosure clock starts when the lien hits the public record, which may be weeks or months after you actually finished the work. Track both dates separately.

The Sworn Statement Trap

Michigan’s sworn-statement requirement, found in MCL 570.1110, operates differently from the Notice of Furnishing and Claim of Lien deadlines. A contractor generally must provide a sworn statement to the owner or lessee whenever payment is due or requested and whenever the owner or lessee demands one. A subcontractor generally must provide a sworn statement to the contractor when payment is due or requested and must provide one to the owner or lessee upon a qualifying demand.

The sworn statement identifies each subcontractor and supplier with whom the issuing contractor or subcontractor contracted for the improvement. It also identifies contracted laborers whose wages, fringe benefits, or withholdings are due but unpaid. The statutory form includes information concerning the applicable contract amounts, payments already made, amounts currently owing, and balances necessary to complete the work.

Failing to provide a required sworn statement does not automatically invalidate a recorded construction lien. For a contractor, MCL 570.1110(9) provides that the lien remains valid, but the contractor is not entitled to payment and may not file a complaint, cross-claim, or counterclaim to enforce the lien until the sworn statement has been provided. MCL 570.1110(10) similarly provides that a subcontractor’s lien remains valid despite the identified sworn-statement omission, but an enforcement action may not proceed until the statement has been furnished.

The omission is therefore generally a curable enforcement bar, not automatic destruction of the lien. Even so, recording first and attempting to supply the statement only after litigation begins is poor practice. It gives the owner or another interested party grounds to challenge the enforcement action and may produce a dispute over substantial compliance, notice, and prejudice.

Sworn statements also protect parties making project payments. An owner, lessee, designee, mortgagee, or contractor may rely on a sworn statement prepared by another party to avoid certain later claims by subcontractors, suppliers, or laborers. That protection is not absolute. A sworn statement generally cannot be used to avoid the claim of a claimant who properly provided a Notice of Furnishing or whose Notice of Furnishing requirement was excused under MCL 570.1108 or 570.1108a. The result may also depend on the accuracy and substantial compliance of the statement, the timing and basis of payments, and any applicable lien waivers.

Five Common Ways Contractors Damage Their Lien Rights

Lien rights often deteriorate through a series of ordinary administrative mistakes rather than one dramatic event:

• Calculating the 90-day recording deadline from the invoice date, payment dispute, inspection, or last site visit instead of the claimant’s last qualifying furnishing of labor or material for the improvement pursuant to its contract.
• Assuming that the direct-contract contractor’s exemption from the Notice of Furnishing requirement also protects that contractor’s subcontractors or suppliers. The exemption applies to lien rights arising from the contractor’s own direct contract with the owner or lessee; it does not pass down the contracting chain.
• Confusing the one-year deadline to commence lien-foreclosure proceedings with the limitations period governing a separate breach-of-contract claim. The two remedies and their deadlines operate independently. A viable contract claim does not preserve an expired construction lien.
• Failing to investigate the applicable Notice of Commencement procedure. On a nonresidential project, failure to record the Notice of Commencement can extend the Notice of Furnishing deadline. On a residential project, the owner ordinarily must prepare and furnish the Notice of Commencement after receiving a proper written request accompanied by the required blank forms.
• Recording a Claim of Lien but failing to complete the required post-recording service within 15 days. Although some defects may be evaluated under substantial-compliance principles, complete or prejudicial noncompliance can seriously impair enforcement and should never be treated as harmless.

Why This Matters for Michigan Contractors in Metro Detroit

Projects in Oakland, Wayne, Macomb, and Washtenaw Counties often proceed quickly, while payment disputes emerge only after crews and project managers have turned their attention elsewhere. By the time an owner or general contractor begins delaying payment, several lien-related deadlines may already be approaching.

Michigan courts require strict compliance with the 90-day Claim of Lien recording deadline. A lien recorded after that period ordinarily ceases to exist, even if it is only one day late. Other requirements—including sworn statements and post-recording service—may permit substantial-compliance analysis in appropriate circumstances, but contractors should not plan their compliance around the hope that a court will excuse a defect.

A missing sworn statement should not be equated with a late Claim of Lien. The late recording ordinarily extinguishes the lien. A missing sworn statement generally leaves the lien valid but prevents payment or enforcement until the defect is cured. Both problems are serious, but they have different consequences.

The practical answer is to incorporate Construction Lien Act compliance into ordinary project administration. Notices of Commencement, Notices of Furnishing, sworn statements, lien waivers, last-furnishing records, Claim of Lien deadlines, and service receipts should be tracked with the same discipline applied to insurance certificates, permits, change orders, and payment applications.

Contractor Takeaway

Do not wait for a payment dispute before evaluating lien rights. Track the following compliance events on every project:

1. Determine whether the project is residential or nonresidential and obtain or request the applicable Notice of Commencement.
2. Record the first date on which labor or material is furnished and calculate the presumptive Notice of Furnishing deadline.
3. Identify every event requiring a contractor’s or subcontractor’s sworn statement, including payment requests, payments becoming due, and owner demands.
4. Document the last qualifying furnishing of labor or material and calculate the 90-day Claim of Lien recording deadline from the earliest defensible completion date.
5. If a Claim of Lien is recorded, calendar the 15-day post-recording service deadline immediately and preserve proof of service.
6. Calendar the one-year deadline for commencing lien-foreclosure proceedings from the date the Claim of Lien was recorded.

Because the last-furnishing date and the effect of later work can be fact-sensitive, contractors should obtain advice from Michigan construction-lien counsel well before a disputed deadline expires—not after the calendar has already delivered its verdict.

Frequently Asked Questions About Michigan Notices of Furnishing and Construction Liens

Protect Your Lien Rights Before the Deadlines Expire — Contact Szura & Delonis, PLC

Michigan construction-lien rights can be lost or substantially reduced before a payment dispute fully develops. Serving the wrong party, miscalculating the Notice of Furnishing deadline, relying on warranty work to extend the 90-day recording period, or missing a post-recording requirement can turn a valuable payment remedy into an expensive argument over an invalid or impaired lien.

At Szura & Delonis, PLC, our Michigan construction law attorneys help contractors, subcontractors, and suppliers throughout Oakland, Wayne, Macomb, Washtenaw, and Livingston Counties protect their payment rights. We advise clients regarding Notices of Commencement, Notices of Furnishing, sworn statements, lien waivers, last-furnishing dates, Claims of Lien, and lien-enforcement proceedings.

If you need to determine whether a Notice of Furnishing is required, are unsure when your 90-day recording period began, have been asked to provide a sworn statement or lien waiver, or are facing a construction payment dispute, call us at (248) 716-3600 or contact us online. We respond quickly because Michigan construction-lien deadlines continue to run while the parties debate payment.

This article is provided for general educational and informational purposes only. It does not constitute legal advice and does not create an attorney-client relationship between the reader and Szura & Delonis, PLC. Michigan construction law involves complex statutory requirements and fact-specific analysis. Do not rely on this content as legal advice for your specific situation. If you have a time-sensitive construction law matter, consult a qualified Michigan construction attorney immediately.

About the Author

Richard M. Delonis is a Michigan construction, business, and real estate attorney at Szura & Delonis, PLC in Southfield, serving clients throughout Metro Detroit. He advises construction managers, general contractors, subcontractors, suppliers, and property owners on lien rights, collections strategy, contract disputes, and project-risk issues.

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

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

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.