A contractor receives a stop payment notice on a project with a remaining balance of $45,000. The contractor's work is 75% complete. How much can legally be withheld?
Correct Answer
A) $11,250
Remaining work = 25% of $45,000 = $11,250. Only the amount for incomplete work can be legally withheld under Michigan lien law.
Why This Is the Correct Answer
Remaining work = 25% of $45,000 = $11,250. Only the amount for incomplete work can be legally withheld under Michigan lien law.
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