A subcontractor performs $45,000 of electrical work but is not paid by the general contractor. Under Michigan lien law, what preliminary notice requirement must be satisfied to preserve lien rights?
Correct Answer
B) Notice to owner within 20 days of first work
Michigan Construction Lien Act requires subcontractors to provide notice to the property owner within 20 days of first furnishing labor or materials to preserve lien rights.
Why This Is the Correct Answer
Michigan Construction Lien Act requires subcontractors to provide notice to the property owner within 20 days of first furnishing labor or materials to preserve lien rights.
More mi-business Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
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Previous Question
A Michigan contractor has a $150,000 project with materials costing $45,000, labor at $60,000, and overhead/profit of $45,000. If the workers' compensation rate is 8.5% of labor costs, what is the total workers' comp premium?
Next Question
Under Michigan Act 299, a contractor's license expires on what date regardless of when it was originally issued?