Construction lien claims and foreclosures, payment bond claims, defective work and delay disputes, and contract disputes among owners, contractors, subcontractors, and suppliers.
Construction disputes in Michigan are shaped by the Construction Lien Act, MCL 570.1101 et seq., and by the contract documents for the project. The firm represents owners, general contractors, subcontractors, suppliers, and design professionals in those disputes, in the circuit courts and, where the contract requires it, in arbitration.
A lien claimant’s rights depend on following the Act’s sequence of notices and deadlines. Subcontractors and suppliers who do not contract directly with the owner generally must serve a notice of furnishing within 20 days after first furnishing labor or materials. A claim of lien must be recorded within 90 days after the claimant’s last furnishing, and an action to foreclose it must be filed within one year after recording. A missed step can reduce or eliminate the lien. Owners, for their part, rely on sworn statements and lien waivers to avoid paying twice for the same work. The firm handles lien claims and foreclosures on both sides.
Liens cannot be recorded against public property. On public projects, subcontractors and suppliers look instead to the payment bond the general contractor must furnish under MCL 129.201 et seq., which sets its own notice requirements and deadlines.
Many construction cases are contract cases: claims for unpaid balances and extras, back charges, defective or incomplete work, and delay. They often depend on how the contract allocated risk and on the record kept during the project, including change orders, daily logs, and correspondence.
Under MCL 339.2412, a residential builder who was not licensed for the work generally cannot sue to collect payment for it. Whether that bar applies is often one of the first questions in a residential dispute.
Under Michigan’s Construction Lien Act, a claim of lien must be recorded within 90 days after the lien claimant last furnished labor or material for the improvement. Subcontractors and suppliers without a direct contract with the owner generally must also serve a notice of furnishing within 20 days after first furnishing. A lien must be enforced by a lawsuit within one year after it is recorded.
The Construction Lien Act gives residential owners and lessees who paid their contractor a defense in many of these situations. The details matter, including whether the contractor was licensed and what sworn statements and lien waivers were exchanged. Collecting sworn statements and waivers with each payment is an important protection.
Under MCL 339.2412, a residential builder or maintenance and alteration contractor who was not licensed when the work was performed generally cannot sue to collect payment for that work. Licensing questions can be decisive in residential construction disputes, so they should be checked early.
Liens are generally not available against public property. Instead, Michigan’s public works bond statute, MCL 129.201 et seq., requires payment bonds on many public projects, and unpaid subcontractors and suppliers can claim against the bond. Bond claims have their own strict notice deadlines, which differ from lien deadlines.
Claims for defective work may be brought for breach of contract, breach of warranty, or in some cases negligence, depending on the facts and the contract. Michigan also has a statute of repose that can bar claims against contractors and design professionals a set number of years after completion, regardless of when the defect is found. Prompt investigation and written notice to the contractor are important.
These answers are general information about Michigan and federal law, not legal advice about your situation. Contacting the firm does not create an attorney-client relationship.
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