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Notice of Commencement

MichiganNotice of Commencement

We own a small asphalt paving company and recently received a Request for copy of notice of commencement. We have never seen this before or know what it is or what to do with it. I have researched this, and it looks like it is the property owners responsibility to get one for the project. We typically bid a job, then the customer accepts it, signs, and we file for permits if needed, then complete the job and invoice. Do I now have to get a NOC for each job? Even if we are the only contractor? Please help.

4 replies

Aug 2, 2021

You're correct that before work begins the Owner is the person who is responsible to record a Notice of Commencement. The Owner then should give you as the contractor a copy of the Notice of Commencement to give to your subcontractors or suppliers. In this case, I would forward the request for a NOC to your customer. 

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Aug 2, 2021
I agree with Peter EXCEPT I believe that a blank notice of commencement for a construction job must be presented by a contractor to a RESIDENTIAL HOMEOWNER contracting for a job.
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Aug 10, 2021

Mr. Weiner is correct, although the Michigan Construction Lien Act is less than clear on this point. 

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." 

Sec. 108a. (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. "

 

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Aug 13, 2021
Hi there,
 
So apparently a subcontractor or supplier on the project wants to provided a Notice of Furnishing to preserve lien rights and needs the NOC (provided by owner / owner’s designee / GC) for the job to correctly fill out lien law paperwork. As a contractor, you do not need to worry about your physical property being subject to a construction lien. But simply work with the Owner / Owner’s Designee to forward this request to be an active participant in the lien-litigation risk management statutory paperwork dance as is in the best interests of the project. Good luck!
 
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