Michigan Construction Lien Laws and Roofing Contracts

Michigan's Construction Lien Act, codified at MCL 570.1101–570.1305, establishes the statutory framework governing payment rights and property encumbrances for contractors, subcontractors, material suppliers, and laborers who perform work on real property. For roofing projects, these provisions directly shape contract structure, payment sequencing, and dispute resolution. Understanding how lien rights attach, the notice requirements that preserve them, and how Michigan courts have interpreted the Act is essential for any party involved in residential or commercial roofing work in the state.

Definition and scope

A construction lien in Michigan is a statutory security interest that attaches to real property when a contractor or supplier furnishes labor, material, or equipment under a contract and is not paid. The lien encumbers the owner's title until the debt is satisfied or the lien is discharged. The Construction Lien Act (MCL 570.1101) defines the classes of persons entitled to lien rights, including contractors, subcontractors, sub-subcontractors, and material suppliers — all of whom appear regularly in roofing project chains.

Scope of this page: This reference covers Michigan state law only, specifically the Construction Lien Act as it applies to roofing contracts on Michigan-sited property. Federal construction law, other states' lien statutes, and bankruptcy-related lien avoidance are not covered here. Disputes involving federal government property fall under the Miller Act, not the Construction Lien Act, and are outside this page's scope. Michigan's broader regulatory framework for the roofing industry addresses adjacent licensing and code compliance issues.

The roofing industry operates as part of Michigan's construction sector, where lien exposure is routine. A homeowner who fails to verify that a roofing subcontractor has been paid by the general contractor can face a lien from that subcontractor despite having paid the general contractor in full — this is the "double payment" scenario the Act's notice provisions are designed to prevent.

How it works

Michigan lien rights do not arise automatically upon starting work. The Act imposes a structured notice process:

1. Contractor's sworn statement — A contractor must provide an owner with a sworn statement listing all subcontractors and suppliers on the project before the owner makes any payment (MCL 570.1110).
2. Notice of furnishing — Subcontractors and material suppliers who do not have a direct contract with the owner must serve a Notice of Furnishing on the owner and general contractor within 20 days of first furnishing labor or material (MCL 570.1109).
3. Lien filing deadline — A lien claimant must record a Claim of Lien with the county register of deeds within 90 days of the last date labor or material was furnished (MCL 570.1111).
4. Commencement of action — A lien claimant must initiate a lawsuit to enforce the lien within 1 year of the date the Claim of Lien was recorded; failure to do so extinguishes the lien (MCL 570.1117).
5. Lien waivers — Parties may execute lien waivers upon payment; Michigan distinguishes between conditional waivers (effective only upon payment clearing) and unconditional waivers (immediately effective).

The contract between the property owner and the roofing contractor must, under Michigan law, include disclosure language informing the owner of their right to a contractor's sworn statement and their exposure to subcontractor liens. Failure to include required disclosures can affect the contractor's ability to enforce lien rights.

Common scenarios

Roofing contractor not paid by property owner: The contractor records a Claim of Lien within the 90-day window, which clouds the owner's title. The owner cannot sell or refinance the property without resolving the lien. The contractor then files suit within 1 year to foreclose.

Roofing subcontractor not paid by general contractor: If the subcontractor served a timely Notice of Furnishing, it can assert a lien against the owner's property even though the owner has no direct contract with the subcontractor. The owner's remedy is to withhold payment from the general contractor equal to amounts owed to known subcontractors — a practice governed by the contractor's sworn statement requirement.

Material supplier for roofing materials: A supplier delivering shingles, underlayment, or flashing to a job site holds the same lien rights as a labor subcontractor, provided it served a Notice of Furnishing within 20 days of first delivery. Roofing materials used on Michigan projects affect lien exposure proportionally to their invoice value.

Residential vs. commercial distinction: On owner-occupied residential projects of 2 units or fewer, the owner's homestead protections interact with the lien statute. Commercial properties — including flat-roof and industrial structures covered under Michigan commercial roofing standards — carry no homestead limitation on lien enforcement.

Decision boundaries

The Act creates clear classification lines that determine lien rights:

A roofing contractor who misses the 90-day filing deadline loses lien rights entirely — no equitable extension is available under Michigan courts' interpretation of the Act. Similarly, a subcontractor that fails to serve a Notice of Furnishing within 20 days of first furnishing forfeits lien rights against the owner, though it may retain breach-of-contract claims against the general contractor.

Contract language matters independently of lien rights. Roofing contracts should specify payment milestones, retainage terms (if any), and dispute resolution procedures. The Michigan roofing permit process intersects with contract structure because permit-related delays can affect the "first furnishing" date that starts the Notice of Furnishing clock.

For the broader context of contractor obligations and licensing standards that interact with lien rights, the Michigan Roofing Authority index maps the full regulatory and contractual landscape.

References

• Michigan Construction Lien Act, MCL 570.1101–570.1305 — Michigan Legislature
• MCL 570.1109 — Notice of Furnishing, Michigan Legislature
• MCL 570.1110 — Contractor's Sworn Statement, Michigan Legislature
• MCL 570.1111 — Claim of Lien Filing Requirements, Michigan Legislature
• MCL 570.1117 — Enforcement Action Deadline, Michigan Legislature
• Michigan Department of Licensing and Regulatory Affairs (LARA)
• Miller Act, 40 U.S.C. §§ 3131–3134 — U.S. Government Publishing Office