Which scenario would require a Notice of Furnishing under Michigan's Construction Lien Act 497?
Correct Answer
D) A subcontractor working for a general contractor on a residential project
Under Michigan's Construction Lien Act 497, subcontractors must provide a Notice of Furnishing to preserve their lien rights on residential projects.
Why This Is the Correct Answer
Under Michigan's Construction Lien Act 497, subcontractors who do not have a direct contract with the property owner must serve a Notice of Furnishing to preserve their lien rights. On residential projects, this is especially critical because property owners must be alerted that parties beyond the general contractor have furnished labor or materials to the project.
Why the Other Options Are Wrong
Option A: Any contractor on a commercial project over $50,000
The $50,000 commercial project threshold is invented — no such trigger exists in Act 497 for requiring a Notice of Furnishing. The notice requirement is based on the contractual relationship (subcontractor vs. direct contractor), not project type or dollar amount.
Option B: Only material suppliers
Material suppliers alone do not define who needs a Notice of Furnishing. Subcontractors (providing labor, materials, or both) also must provide the notice. Limiting the requirement to 'only material suppliers' is an incomplete and incorrect statement of the law.
Option C: A general contractor working directly with a property owner
A general contractor working directly with a property owner does NOT need to file a Notice of Furnishing. The notice is required precisely because the property owner may not know about parties who don't have a direct contract with them. A GC with a direct owner contract already has that relationship — no notice needed.
Memory Technique
Notice of Furnishing = 'Hey owner, I'm working here too.' Anyone who doesn't have a direct deal with the property owner — subcontractors, sub-subs, suppliers — needs to send this notice so the owner knows they exist and have potential lien rights.
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