ABC-SEMI Southeast Michigan Contractors Issue 2, 2021

Southeast Michigan Contractors Issue 2 2021 7 To establish a lien, a Contractor must perform only three steps: 1. Record a Claim of Lien in the County Register of Deeds where the Owner’s property is located with 90 calendar days after last providing labor or material. Before recording Claim, give the Owner a final Sworn Statement. 2. Serve a copy of the recorded Claim of Lien on the Owner’s Designee within 15 days from date of recording by certified mail or personal delivery. 3. Prepare Proof of Service of Claim of Lien. Keep and attach to lawsuit if filed. mortgage holders. If successful in litigating the lien claim, the lien claimant can recover reasonable attorney fees and costs. Eric Flessland, ABC SEMI Secretary and construction lawyer at Butzel Long, recommends, “Get into the habit of following this process on every private work or contract you perform. Before the ink is dry on each contract you sign, send your prime contractor a written request for a notice of commencement and blank notice of furnishing form. Make a “what to do when” check list and create a separate folder for each project in which you should put these completed forms so you can easily check to see if you have sent the forms timely.” Sending a notice of furnishing informs the owner you are working on their project when they may not have otherwise known. A prudent owner (or its bank) will make sure you get paid to avoid a claim of lien on the property. Often, recording the claim of lien alone will cause the owner to make sure you get paid just to clear title to its property. Eric Flessland noted, “If litigation is regrettably necessary and you have followed these steps, and placed the documents in a separate file along with a copy of your contract or purchase order, it is a simple matter to send that informa- tion to your attorney.” Be smart and make sure you protect your company and your investment in the project.