Under Michigan law, how many days after completion of work does a contractor have to file a construction lien?
Correct Answer
A) 90 days
Michigan Construction Lien Act 497 requires that a construction lien be filed within 90 days after completion of work or last furnishing of materials.
Why This Is the Correct Answer
Michigan's Construction Lien Act (Public Act 497 of 1980) specifically states that a construction lien must be recorded within 90 days after the last day the contractor furnished labor or materials. Missing this deadline permanently extinguishes lien rights.
Why the Other Options Are Wrong
Option B: 180 days
180 days is not the lien filing deadline under the Michigan Construction Lien Act. It may be confused with other notice or action deadlines in different states or contract types. Michigan's deadline is 90 days.
Option C: 60 days
60 days is shorter than the actual 90-day requirement. Some states use a 60-day window, which may cause confusion, but Michigan mandates 90 days for filing a construction lien.
Option D: 120 days
120 days is not established in Michigan lien law for the primary filing deadline. This number may be confused with lien foreclosure deadlines or timelines from other jurisdictions.
Memory Technique
Remember '90 days to lien' using the phrase: 'A contractor has a QUARTER of the year (90 days) to protect their quarter (money).' The 90-day clock starts on the last day of work or material delivery.
More Michigan 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:
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
Which Michigan agency has primary regulatory authority over contractor licensing and compliance?
Next Question
A subcontractor provided $25,000 in materials and labor but was paid only $18,000. Filing fees are $175 and attorney costs are $2,500. What is the maximum lien amount under Michigan law?