MICHIGAN COMPILED LAWS

MICHIGAN COMPILED LAWS

CHAPTER 570 LIENS

CONSTRUCTION LIEN ACT

PART 1

570.1101 Short Title

570.1102 Definitions

570.1103 Definitions

570.1104 Definitions

570.1105 Definitions

570.1106 Definitions

570.1107 Persons Entitled to Construction Liens, Interests Affected, Vendee or Lessee, Joint Ownership, Limitation of Amount of Liens

570.1108 Notice of Commencement, Service, Posting, Exemption

570.1108a Notice of Commencement, Residential Structure, Service, Posting

570.1109 Notice of Furnishing, Service

570.1110 Sworn Statement by Contractor, Subcontractor, Owner May Withhold Payment, Direct Payment, Notice to General Contractor, Failure to Provide Sworn Statement, Penalties

570.1111 Claim of Lien, Recording, Time

570.1112 Recording, Indexing, Fees

570.1113 Inspection and Copying of Contract, Statement of Amount Unpaid, Statement of Labor and Material Furnished and Amount Unpaid

570.1114 Contractors License, Notice in Contract

570.1115 Advance Waiver Prohibited, Waivers of Lien, Partial Waivers, Conditional Waivers, Retainage, Waiver Forms

570.1116 Release Bond, Notice, Objection to Surety

570.1117 Foreclosure Proceedings, Limitations, Notice of Lis Pendens, Parties, Personal Action

570.1118 Foreclosure Action, Venue, Trial, Attorneys Fees

570.1119 Priorities, Advances from Construction Loans, Retainage

570.1120 Part Performance

570.1121 Judgment, Sale, Redemption, Deficiency Judgment

570.1122 Receiver

570.1123 Completion of Construction or Sale or by Receiver

570.1124 Final Account of Receiver

570.1125 Liens Assignable

570.1126 Limitations on Condominium Liens

570.1127 Discharge of Lien

570.1128 Certificate That No Foreclosure Proceedings Have Been Commenced

PART 2

570.1201 Homeowner Construction Lien Recovery Fund, Fees

570.1202 Management, Audit

570.1203 Homeowner Affidavit, Recovery from the Fund, Defense by Attorney General

570.1204 Payments from the Fund

570.1205 Immunity, Recoupment

570.1206 Disciplinary Proceedings

570.1207 False Information, Felony

PART 3

570.1301 Residential Structures, Application of Act, Statement of Date of Contract, Notice of Furnishing, Definitions

570.1302 Liberal Construction

570.1304 Joint Review Committee

570.1305 Effective Date

MICHIGAN COMPILED LAWS

CHAPTER 570 LIENS

CONSTRUCTION LIEN ACT

PART 1

570.1101 Short Title

Sec. 101. This act shall be known and may be cited as the “construction lien act”.

570.1102 Definitions

Sec. 102. For the purposes of this act, the words and phrases defined in sections 103 to 106 have the meanings ascribed to them in those sections.

570.1103 Definitions

Sec. 103. (1) “Actual physical improvement” means the actual physical change in, or alteration of, real property as a result of labor provided, pursuant to a contract, by a contractor, subcontractor, or laborer which is readily visible and of a kind that would alert a person upon reasonable inspection of the existence of an improvement. Actual physical improvement does not include that labor which is provided in preparation for that change or alteration, such as surveying, soil boring and testing, architectural or engineering planning, or the preparation of other plans or drawings of any kind or nature. Actual physical improvement does not include supplies delivered to or stored at the real property.

(2) “Co-lessee” a person having an interest in real property, the nature of which is identical to that of the interest of the lessee who contracted for the improvement to the real property, whether the extent of such interest is identical or not.

(3) “Construction lien” means the lien of a contractor, subcontractor, supplier, or laborer, as described in section 107.

(4) “Contract” means a contract, of whatever nature, for the providing of improvements to real property, including any and all additions to, deletions from, and amendments to the contract.

(5) “Contractor” means a person who, pursuant to a contract with the owner or lessee of real property, provides an improvement to real property.

(6) “Co-owner” means a person having an interest in real property, the nature of which is identical to that of the interest of the owner who contracted for the improvement to the real property, whether the extent of such interest is identical or not.

570.1104 Definitions

Sec. 104. (1) “Court” means the circuit court in which an action to enforce a construction lien through foreclosure is pending.

(2) “Department” means the department of licensing and regulation.

(3) “Designee” means the person named by an owner or lessee to receive, on behalf of the owner or lessee, all notices or other instruments whose furnishing is required by this act. The owner or lessee may name himself or herself as designee. The owner or lessee may not name the contractor as designee. However, a contractor who is providing only architectural or engineering services may be named as designee.

(4) “Fringe benefits and withholdings” means compensation due an employee pursuant to a written contract or written policy for holiday, time off for sickness or injury, time off for personal reasons or vacation, bonuses, authorized expenses incurred during the course of employment, and any other contributions made to or on behalf of an employee.

(5) “Fund” means the homeowner construction lien recovery fund created under part 2.

(6) “General contractor” means a contractor who contracts with an owner or lessee to provide, directly or indirectly through contracts with subcontractors, suppliers, or laborers, substantially all of the improvements to the property described in the notice of commencement.

(7) “Improvement” means the result of labor or material provided by a contractor, subcontractor, supplier, or laborer, including, but not limited to, surveying, engineering and architectural planning, construction management, clearing, demolishing, excavating, filling, building, erecting, constructing, altering, repairing, ornamenting, landscaping, paving, leasing equipment, or installing or affixing a fixture or material, pursuant to a contract.

(8) “Laborer” means an individual who, pursuant to a contract with a contractor or subcontractor, provides an improvement to real property through the individual’s personal labor.

570.1105 Definitions

Sec. 105. (1) “Lessee” means a person, other than the owner, who holds an interest, other than a security interest, in real property.

(2) “Lien claimant” means a person having a right to a construction lien under this act.

(3) “Owner” means a person holding a fee interest in real property or an equitable interest arising out of a land contract.

570.1106 Definitions

Sec. 106. (1) “Person” means an individual, corporation, partnership, sole proprietorship, association, other legal entity, or any combination thereof.

(2) “Project” means the aggregate of improvements contracted for by the contracting owner.

(3) “Residential structure” means an individual residential condominium unit or a residential building containing not more than 2 residential units, the land on which it is or will be located, and all appurtenances thereto, in which the owner or lessee contracting for the improvement is residing or will reside upon completion of the improvement.

(4) “Subcontractor” means a person, other than a laborer or supplier, who pursuant to a contract between himself or herself and a person other than the owner or lessee performs any part of a contractor’s contract for an improvement.

(5) “Supplier” means a person who, pursuant to a contract with a contractor or a subcontractor, leases, rents, or in any other manner provides material or equipment which is used in the improvement of real property.

(6) “Wages” means all earnings of an employee whether determined on the basis of time, task, piece, commission, or other method of calculation for labor or services except those defined as fringe benefits and withholdings.

570.1107 Persons Entitled to Construction Liens, Interests Affected, Vendee or Lessee, Joint Ownership, Limitation of Amount of Liens

Sec. 107. (1) Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property shall have a construction lien upon the interest of the owner or lessee who contracted for the improvement to the real property, as described in the notice of commencement provided for by section 108 or 108a, the interest of an owner who has subordinated his or her interest to the mortgage for the improvement of the real property, and the interest of an owner who has required the improvement. A construction lien acquired pursuant to this act shall not exceed the amount of the lien claimant’s contract less payments made on the contract.

(2) A construction lien under this act shall attach to the entire interest of the owner or lessee who contracted for the improvement, including any subsequently acquired legal or equitable interest.

(3) Each contractor, subcontractor, supplier, or laborer who provides an improvement to real property to which the person contracting for the improvement had no legal title shall have a construction lien upon the improvement for which the contractor, subcontractor, supplier, or laborer provided labor, material, or equipment. The forfeiture, surrender, or termination of any title or interest held by any owner or lessee who contracted for an improvement to the property or by any owner who subordinated his or her interest to the mortgage for the improvement, or by any owner who has required the improvement shall not defeat the lien of the contractor, subcontractor, supplier, or laborer upon the improvement.

(4) If the rights of a person contracting for an improvement as a land contract vendee or a lessee are forfeited, surrendered, or otherwise terminated, any lien claimant who has provided a notice of furnishing or is excused from providing a notice of furnishing pursuant to section 108, 108a, or 109 and who performs the covenants contained in the land contract or lease within 30 days after receiving actual notice of the forfeiture, surrender, or termination shall be subrogated to the rights of the contracting vendee or lessee as those rights existed immediately before the forfeiture, surrender, or termination.

(5) For purposes of this act, if the real property is owned or leased by more than 1 person, an improvement to real property pursuant to a contract which was entered into by an owner or lessee shall be presumed to have been consented to by any other co-owner or co-lessee, but the presumption shall in all cases be rebuttable. If enforcement of a construction lien through foreclosure is sought and the court finds that the improvement has been consented to by a co-owner or co-lessee who did not contract for the improvement, the court shall order the entire interest of that co-owner or co-lessee, including any subsequently acquired legal or equitable interest, to be subject to the construction lien. A deficiency judgment shall not be entered against a noncontracting owner, co-owner, lessee, or co-lessee.

(6) If the real property of an owner or lessee is subject to construction liens, the sum of the construction liens shall not exceed the amount which the owner or lessee agreed to pay the person with whom he or she contracted for the improvement as modified by any and all additions, deletions, and any other amendments, less payments made by or on behalf of the owner or lessee, pursuant to either a contractor’s sworn statement or a waiver of lien, in accordance with this act.

570.1108 Notice of Commencement, Service, Posting, Exemption

Sec. 108. (1) Before the commencement of any actual physical improvements to real property, the owner or lessee contracting for the improvements shall record in the office of the register of deeds for each county in which the real property to be improved is located a notice of commencement, in the form set forth in this section. If all improvements relate to a single project only 1 notice of commencement need be recorded. A subsequent notice of commencement need not be recorded for an improvement to any real property which currently has a notice of commencement recorded in the office of the register of deeds if that recorded notice of commencement contains the same information as the subsequent notice of commencement.

(2) The notice of commencement shall contain the following information:

(a) The legal description of the real property on which the improvement is to be made. A description conforming to section 212 or 255 of Act No. 288 of the Public Acts of 1967, being sections 560.212 and 560.255 of the Michigan Compiled Laws, shall be a sufficient legal description.

(b) The name, address, and capacity of the owner or lessee of the real property contracting for the improvement.

(c) The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee.

(d) The name and address of the owner’s or lessee’s designee.

(e) The name and address of the general contractor, if any.

(f) The following statement:

“To lien claimants and subsequent purchasers:

Take notice that work is about to commence on an improvement to the real property described in this instrument. A person having a construction lien may preserve the lien by providing a notice of furnishing to the above named designee and the general contractor, if any, and by timely recording a claim of lien, in accordance with law.

A person having a construction lien arising by virtue of work performed on this improvement should refer to the name of the owner or lessee and the legal description appearing in this notice. A person subsequently acquiring an interest in the land described is not required to be named in a claim of lien.

A copy of this notice with an attached form for notice of furnishing may be obtained upon making a written request by certified mail to the above named owner or lessee; the designee; or the person with whom you have contracted.”

(g) The name and address of the person preparing the notice.

(h) An affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.

(3) Each copy of the notice of commencement shall have a blank notice of furnishing as described in section 109 attached to it. The blank notice of furnishing shall be easily detachable from the copy of the notice and need not be recorded.

(4) Incorrect information contained in the notice of commencement furnished by or for an owner or lessee shall not affect adversely the rights of a lien claimants as against the property of that owner or lessee.

(5) The owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(6) A contractor who has been provided with a notice of commencement from the owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the contractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(7) A subcontractor who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor, within 10 days after the date of mailing of a written request by certified mail from a subcontractor, supplier, or laborer who has a direct contract with the subcontractor, shall provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the subcontractor, supplier, or laborer requesting a copy of the notice of commencement.

(8) The owner, lessee, or designee shall post and keep posted a copy of the notice of commencement in a conspicuous place on the real property described in the notice during the course of the actual physical improvement to the real property.

(9) The owner, lessee, or designee shall provide a copy of the notice of commencement to the general contractor, if any. Failure of the owner, lessee, or designee to provide the notice of commencement to the general contractor shall render the owner or lessee liable to the general contractor for all actual expenses sustained by the general contractor in obtaining the information otherwise provided by the notice of commencement.

(10) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time Within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement has been recorded.

(11) Failure of the owner, lessee, or designee to provide, upon written request, the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement actually has been furnished to the subcontractor or supplier.

(12) Failure of the owner, lessee, or designee to record the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been recorded, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(13) Failure of the owner, lessee, or designee to provide the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement has been provided, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(14) Failure of the owner, lessee, or designee to post or keep posted a copy of the notice of commencement as provided in subsection (8) shall render the owner or lessee liable to a subcontractor, supplier, or laborer who becomes a lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the posting.

(15) Failure of a contractor, who has been provided with a notice of commencement from the owner, lessee, or designee, to provide the notice of commencement upon the request of a lien claimant who has a direct contract with the contractor for an improvement to property shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the notice of commencement.

(16) Failure of a subcontractor, who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor to provide the notice of commencement upon the request of a subcontractor, supplier, or laborer who has a direct contract with the subcontractor shall render the subcontractor liable to such subcontractor, supplier, or laborer for all actual expenses sustained by the subcontractor, supplier, or laborer in obtaining the information otherwise provided by the notice of commencement.

(17) If the owner, lessee, or designee fails to provide, record, and post the notice of commencement as provided in this act and if, after the first actual physical improvement, the contractor by certified mail makes a written request to the owner, lessee, or designee to provide, record, and post the notice of commencement and the owner, lessee, or designee fails within 10 days after receipt of the request to do so, the owner or lessee shall be barred from requiring the contractor to hold the owner or lessee harmless from liens of lien claimants to the extent such lien claims could have otherwise been avoided through proper payment, had such request been complied with. If the contractor pays a valid lien claim at the direction of the owner, lessee, or designee after the owner, lessee, or designee has failed to comply with this section, the owner or lessee shall be liable to the contractor to the extent the lien claim could have otherwise been avoided through proper payment had such request been complied with. This subsection shall not apply if the lien claimant appears on a sworn statement provided to the contractor and the claim of the lien claimant appearing on the sworn statement could have been avoided had payment been made in accordance with the sworn statement.

(18) This section shall not apply to an improvement to a residential structure.

570.1108a Notice of Commencement, Residential Structure, Service, Posting

Sec. 108a. (1) An owner or lessee contracting for an improvement to a residential structure shall prepare and provide a notice of commencement to a contractor, subcontractor, supplier, or laborer who has made a written request for the notice pursuant to this section.

(2) The notice of commencement shall contain the following information:

(b) The name, address, and capacity of the owner or lessee of the real property contracting for the improvement.

(c) The name and address of the fee owner of the real property, if the person contracting for the improvement is a land contract vendee or lessee.

(d) The name and address of the owner’s or lessee’s designee.

(e) The name and address of the general contractor, if any. The notice of commencement form shall contain the following caption below the line for the general contractor’s name and address: (the name of the person with whom you have contracted to provide substantially all the improvements to the property.)

(f) The following statement in boldface type on the front of the form:

WARNING TO HOMEOWNER

Michigan law requires that you do the following:

1. Complete and return this form to the person who asked for it within 10 days after the date of the postmark on the request.

2. If you do not complete and return this form within the 10 days you may have to pay the expenses incurred in getting the information.

3. If you do not live at the site of the improvement, you must post a copy of this form in a conspicuous place at that site.

You are not required to but should do the following:

1. Complete and post a copy of this form at the place where the improvement is being made, even if you live there.

2. Make and keep a copy of this form for your own records.

(g) The following statement:

“To lien claimants and subsequent purchasers:

(h) The name and address of the person preparing the notice.

(i) An affidavit of the owner or lessee or the agent of the owner or lessee which verifies the notice.

(4) Incorrect information contained in the notice of commencement furnished by or for an owner or lessee shall not affect adversely the rights of a lien claimant as against the property of that owner or lessee.

(5) The owner, lessee, or designee, within 10 days after the date of mailing of a written request by certified mail from a contractor subcontractor, supplier, or laborer, shall prepare and provide a copy of the notice of commencement, together with an attached blank notice of furnishing form, to the contractor, subcontractor, supplier, or laborer requesting a copy of the notice of commencement. A contractor, subcontractor, supplier, or laborer who requests a notice of commencement from an owner or lessee of a residential structure shall supply a blank notice of commencement form together with the attached blank notice of furnishing to the owner or lessee at the time the request is made.

(8) If the owner, lessee, or designee has received a blank notice of commencement form pursuant to subsection (5) and if the owner or lessee does not currently reside at the real property described in the notice of commencement, the owner, lessee, or designee shall post a copy of the notice of commencement in a conspicuous place on the real property during the course of the actual physical improvement to the real property.

(9) Failure of the owner, lessee, or designee to provide, upon written request, the notice of commencement, in accordance with this section, shall operate to extend the time within which a subcontractor or supplier may provide a notice of furnishing, as described in section 109, until 20 days after the notice of commencement actually has been furnished to the subcontractor or laborer.

(10) Failure of the owner, lessee, or designee to provide the notice of commencement, in accordance with this section, shall operate to extend the time within which a laborer may provide a notice of furnishing, as described in section 109, until 30 days after the notice of commencement actually has been furnished to the laborer, or until the time in which to provide the notice of furnishing in accordance with section 109 expires, whichever is later.

(11) Failure of the owner, lessee, or designee to post or keep posted a copy of the notice of commencement as provided in subsection (8) shall render the owner or lessee liable to the subcontractor, supplier, or laborer who becomes a lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the posting.

(12) Failure of a contractor, who has been provided with a notice of commencement from the owner, lessee, or designee, to provide the notice of commencement upon the request of the lien claimant who has a contract with the contractor for an improvement to the property shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the information otherwise provided by the notice of commencement. Failure of a contractor to provide the name and address of the owner or lessee in accordance with subsection (6) shall render the contractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the name and address of the owner or lessee.

(13) Failure of a subcontractor, who has been provided with a notice of commencement from the owner, lessee, designee, contractor, or subcontractor, to provide the notice of commencement upon the request of a subcontractor, supplier, or laborer who has a direct contract with the subcontractor shall render the subcontractor liable to such subcontractor, supplier, or laborer for all actual expenses sustained by the subcontractor, supplier, or laborer in obtaining the information otherwise provided by the notice of commencement. Failure of a subcontractor to provide the name and address of the owner or lessee in accordance with subsection (6) shall render the subcontractor liable to the lien claimant for all actual expenses sustained by the lien claimant in obtaining the name and address of the owner or lessee.

(14) This section shall only apply to an improvement to a residential structure.

570.1109 Notice of Furnishing, Service

Sec. 109. (1) Except as otherwise provided in sections 108, 108a, and 301, a subcontractor or supplier who contracts to provide an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, as named in the notice of commencement at the address shown in the notice of commencement, either personally or by certified mail, within 20 days after furnishing the first labor or material. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by certified mail, service is complete upon mailing. A contractor is not required to provide a notice of furnishing to preserve lien rights arising from his or her contract directly with an owner or lessee.

(2) Except as otherwise provided in sections 108 and 108a,, a laborer who contracts to provide an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, as named in the notice of commencement at the address shown in the notice of commencement, either personally or by mail, within 30 days after wages were contractually due but were not paid. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by mail, service is complete upon mailing by first class mail with postage prepaid.

(3) Except as otherwise provided in sections 108 and 108a, a laborer who provides an improvement to real property shall provide a notice of furnishing to the designee and the general contractor, if any, named in the notice of commencement at the address shown in the notice of commencement, either personally or by certified mail, by the fifth day of the second month following the month in which fringe benefits or withholdings from wages were contractually due but were not paid. If a designee has not been named in the notice of commencement, or if the designee has died, service shall be made upon the owner or lessee named in the notice of commencement. If service of the notice of furnishing is made by certified mail, service is complete upon mailing.

(4) The notice of furnishing, if not given on the form attached to the notice of commencement, shall be in substantially the following form:

NOTICE OF FURNISHING

To: ____________________________________

(name of designee (or owner or lessee) from notice of commencement)

__________________________________________________________________________

(address from notice of commencement)

Please take notice that the undersigned is furnishing to __________

__________________________________________

(name and address of other contracting party)

certain labor or material for ____________ (describe type of work) in connection with the improvement to the real property described in the notice of commencement recorded in liber ____, on page ____ , ____________ (name of county) records,

___________________________________

or (a copy of which is attached hereto)

WARNING TO OWNER: THIS NOTICE IS REQUIRED BY THE MICHIGAN CONSTRUCTION LIEN ACT. IF YOU HAVE QUESTIONS ABOUT YOUR RIGHTS AND DUTIES UNDER THIS ACT, YOU SHOULD CONTACT AN ATTORNEY TO PROTECT YOU FROM THE POSSIBILITY OF PAYING TWICE FOR THE IMPROVEMENTS TO YOUR PROPERTY.

____________________________

(name and address of lien claimant)

by _________________

(name and capacity of party signing for lien claimant)

___________________

(address of party signing)

Date: __________

(5) The failure of a lien claimant to provide a notice of furnishing within the time specified in this section shall not defeat the lien claimant’s right to a construction lien for work performed or materials furnished by the lien claimant after the service of the notice of furnishing.

(6) The failure of a lien claimant, to provide a notice of furnishing within the time specified in this section shall not defeat the lien claimant’s right to a construction lien for work performed or materials furnished by the lien claimant before the service of the notice of furnishing except to the extent that payments were made by or on behalf of the owner or lessee to the contractor pursuant to either a contractor’s sworn statement or a waiver of lien in accordance with this act for work performed or material delivered by the lien claimant. This subsection does not apply to a laborer.

(7) The failure of a laborer to provide a notice of furnishing to the designee as required by subsection (2) shall defeat the laborer’s lien for those wages for which the notice of furnishing is required.

(8) The failure of a laborer to provide a notice of furnishing to the designee as required by subsection (3) shall defeat the laborer’s lien for those fringe benefits and withholdings for which the notice of furnishing is required.

(9) The failure of a laborer to provide a notice of furnishing to the general contractor within the time specified in subsection (2) or (3) shall not defeat the laborer’s right to a construction lien, but the laborer shall be liable for any actual damages sustained by the general contractor as a result of the failure.

(10) One or more laborers may authorize an agent to prepare and serve a notice of furnishing in the manner provided in this section. Notice of furnishing under this section may contain the notice of furnishing of more than 1 laborer and shall contain the information required in subsection (4) as to each laborer for whom it is prepared. The notice of furnishing of each lien claimant under this subsection shall be considered by the court on its own merits.

570.1110 Sworn Statement by Contractor, Subcontractor, Owner May Withhold Payment, Direct Payment, Notice to General Contractor, Failure to Provide Sworn Statement, Penalties

Sec. 110. (1) A contractor shall provide a sworn statement to the owner or lessee in each of the following circumstances:

(a) When payment is due to the contractor from the owner or lessee or when the contractor requests payment from the owner or lessee.

(b) When a demand for the sworn statement has been made by or on behalf of the owner or lessee.

(2) A subcontractor shall provide a sworn statement to the owner or lessee when a demand for the sworn statement has been made by or on behalf of the owner or lessee.

(3) A subcontractor shall provide a sworn statement to the contractor when payment is due to the subcontractor from the contractor or when the subcontractor requests payment from the contractor.

(4) The sworn statement shall list each subcontractor and supplier with whom the person issuing the sworn statement has contracted relative to the improvement to the real property. The sworn statement shall contain a list of laborers with whom the person issuing the sworn statement has contracted relative to the improvement to the real property and for whom payment for wages or fringe benefits and withholdings are due but unpaid and the itemized amount of such wages or fringe benefits and withholdings. The sworn statement shall be in substantially the following form:

SWORN STATEMENT

State of Michigan

) ss.

County of _________)

__________, being duly sworn, deposes and says:

That _______ is the (contractor) (subcontractor) for an improvement to the following described real property situated in ____________ County, Michigan, described as follows:

___________________________ (insert legal description of property)

That the following is a statement of each subcontractor and supplier and laborer, for which laborer the payment of wages or fringe benefits and withholdings is due but unpaid, with whom the (contractor) (subcontractor) has (contracted) (subcontracted) for performance under the contract with the owner or lessee thereof, and that the amounts due to the persons as of the date hereof are correctly and fully set forth opposite their names, as follows:

Name of	Type of	Total	Amount	Amount	Balance	Amount	Amount of
subcontractor,	improvement	contract	already	currently	to complete	of laborer	laborer
supplier,	furnished	price	paid	owing	(optional)	wages	fringe
or laborer						due