A Michigan contractor receives a Notice of Furnishing for a $150,000 commercial project. Under the Construction Lien Act, within how many days must the contractor provide notice to the property owner if they intend to preserve lien rights?
Correct Answer
A) 20 days
Under Michigan's Construction Lien Act 497, contractors must provide notice within 20 days of receiving a Notice of Furnishing to preserve their lien rights.
Why This Is the Correct Answer
Under Michigan's Construction Lien Act (Act 497), when a contractor receives a Notice of Furnishing from a subcontractor or supplier, the contractor must provide that notice to the property owner within 20 days to preserve the lien rights of the party who furnished the notice.
Why the Other Options Are Wrong
Option B: 60 days
60 days is not the correct timeframe under Michigan's Construction Lien Act for forwarding a Notice of Furnishing. This deadline is much shorter at 20 days.
Option C: 90 days
90 days is not the deadline for providing notice to the property owner after receiving a Notice of Furnishing. 90 days is associated with other lien filing timelines, not this notification step.
Option D: 30 days
30 days is longer than the actual 20-day requirement and would cause a contractor to miss the statutory deadline for protecting lien rights.
Memory Technique
20 days appears repeatedly in Michigan lien law — for Notice of Furnishing forwarding and other notice requirements. Think of '20' as Michigan's standard lien-notice number. When in doubt on Michigan notice periods, 20 days is often the answer.
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Under Michigan law, within how many days must a contractor provide preliminary notice to preserve lien rights on a commercial project?
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