The Construction Lien Act
In Michigan, construction lien rights are created for those who provide improvements to privately owned real property. The Michigan Construction Lien Act (“CLA”) outlines the lien right process and can be found under MCL §570.1101 et seq. The CLA serves the purpose of providing particular actors within the construction industry security for payments in connection with services rendered for a construction project. In its most simplistic form, the CLA ensures that payment is made for the work that is completed as long as the particular CLA process is followed exactly as the law states.
In order to preserve and pursue lien rights, a lien claimant must follow the specific procedures that are outlined in MCL §570.1101 et seq. The statute outlines the forms, notice and filing procedures, along with time constraints that individuals within the construction industry must follow to secure payment rights with respect to a construction project. Members of the Construction industry should be aware of the following items and each items specific requirements to comply with the CLA:
- Notice of Commencement
- Notice of Furnishing
- Contractor’s Sworn Statement
- Lien Waivers
- Claim of Lien
- Discharge of Lien
Although compliance with the CLA is attainable, it can become complicated or feel burdensome. This can lead to a loss of lien rights. Therefore, it is critical to develop a deep understanding of the various requirements of the CLA. Let us help you design and implement a functional process through our lien and bond training to ensure your lien rights are secured.
Samantha M. McLeod | Associate Attorney
KALTZ Coulombe PLLC