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
Under Michigan's Construction Lien Act, subcontractors who do not have a direct contract with the property owner must serve a Notice of Furnishing on the owner within 20 days of first furnishing labor or materials. Without this timely notice, the subcontractor loses the right to file a construction lien against the property.
Why the Other Options Are Wrong
Option A: No notice required for subcontractors
Subcontractors absolutely have preliminary notice requirements under Michigan law. Unlike prime contractors who contract directly with the owner, subcontractors must file a Notice of Furnishing to protect their lien rights. Skipping this step voids lien rights.
Option C: Notice to general contractor within 30 days
Notice must be given to the property owner — not just the general contractor — within 20 days. Notifying only the GC does not satisfy the Michigan Construction Lien Act's requirement and does not preserve lien rights against the property.
Option D: Notice to LARA within 10 days
LARA (the state licensing agency) has no role in the preliminary notice process for construction liens. Lien notices are served on the property owner, not filed with a state agency. This option conflates licensing compliance with lien law procedure.
Memory Technique
Remember: '20 days from Day 1 on site.' The subcontractor must put the owner on notice almost immediately — within 20 days of stepping foot on the project. Think of it as a 'Hello, I'm here' letter to the owner that protects your right to get paid.
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