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Construction Lien Act 497 0f 1980
Amended 2006 | Effective January 3, 2007
Key elements of the act include:
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A designee must be named by an owner or lessee who then will provide all Notices of Commencement with a blank attached Notice of Furnishing within 10 business days of request by any superior or sub-contractor.
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The designee cannot accept a full or partial waiver of lien from a person other than the lien claimant named in the waiver without verifying its authenticity.
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Upon receipt of a sworn statement from the contractor, designee must notify each party who has sent a Notice of Furnishing of each draw of funds by photo, email, letter or personal contact. If any notified party asks, they must be sent a copy of the sworn statement within 10 business days from their request.
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There are significant changes to the Lien Recovery Fund claims process, to Supplier Members, and new fee structures upon licensing. You may download the Consumer’s Guide to the Michigan Construction Lien Act & The Homeowner Construction Lien Recovery Fund from the Michigan Department of Labor & Economic Growth. The complete Act 497 with changes may be downloaded from www.legislature.mi.gov.