Michigan construction lien and bond deadlines: 20 days, 90 days and one year

Michigan's Construction Lien Act protects contractors, subcontractors, suppliers and laborers on private projects. On public projects, the bond statute in MCL 129.201 to 129.211 does the same job. Both have short, strict deadlines.

This is a summary, not legal advice. Talk to a Michigan construction attorney about a specific project.

Notice of furnishing: 20 days

Under MCL 570.1109, a subcontractor or supplier that contracts to provide an improvement to real property must give a notice of furnishing to the designee and the general contractor named in the notice of commencement, personally or by certified mail, within 20 days after furnishing the first labor or material. If no designee is named, service goes to the owner or lessee named in the notice of commencement. Service by certified mail is complete on mailing.

A laborer must provide a notice of furnishing within 30 days after wages were contractually due but not paid. A contractor that contracts directly with the owner or lessee does not need to give a notice of furnishing to preserve its own lien rights.

Record the lien: 90 days

MCL 570.1111 says the right to a construction lien ceases to exist unless a claim of lien is recorded with the register of deeds for the county where the property is located within 90 days after the lien claimant's last furnishing of labor or material for the improvement under its contract.

Enforce: one year

Under MCL 570.1117, proceedings to enforce a construction lien and foreclose must be brought no later than one year after the claim of lien was recorded.

Public projects: bonds

MCL 129.201 requires the principal contractor to furnish a performance bond and a payment bond before any public contract exceeding $50,000 for the construction, alteration or repair of a public building or public work is awarded.

MCL 129.207 governs claims on the payment bond. A claimant that has not been paid in full 90 days after its last labor or material may sue on the bond. But a claimant without a direct contract with the principal contractor must do two things:

• within 30 days after furnishing the first material or performing the first labor, serve the principal contractor a written notice describing the materials or labor and identifying the party it contracted with and the site; and
• within 90 days after its last labor or material, give written notice to the principal contractor and the governmental unit stating the amount claimed and the party it worked for.

Each notice is served by certified mail.

Licensing and the right to sue

MCL 339.2412 bars a person or company from bringing or maintaining an action to collect compensation for work that requires a residential builder or maintenance and alteration contractor license, unless it alleges and proves it was licensed during the work. Unlicensed residential contractors can lose the ability to collect in court.

Checklist

• Get the notice of commencement as soon as you are hired.
• Serve the notice of furnishing within 20 days of first furnishing (30 days after unpaid wages for laborers).
• Record the claim of lien within 90 days of last furnishing.
• Enforce within one year of recording.
• On public jobs over $50,000, send the 30-day and 90-day bond notices if you have no contract with the prime.

This site's Michigan lien guide links each statute.

An example

A supplier first delivers material to a private project on April 5, 2027. Its notice of furnishing is due within 20 days, by April 25, 2027. If its last delivery is Sept. 10, 2027, the claim of lien must be recorded within 90 days, by Dec. 9, 2027. Once recorded, enforcement must begin within one year of the recording date. On a public job the same supplier, if it has no contract with the prime, would serve its first bond notice within 30 days of first delivery and its claim notice within 90 days of last delivery.