Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Michigan lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party’s right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let’s dive into the world of Michigan lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Michigan is one of just 12 states that regulates lien waivers with a specific statutory form. Everything is outlined in the very comprehensive (and very helpful) Michigan Construction Lien Act. Whether you’re a GC, subcontractor, or supplier, following all the rules is crucial to avoid payment delays or complicated disputes.
In Michigan, parties can use any of the four outlined form options:
- partial conditional waiver,
- partial unconditional waiver,
- full conditional waiver, and
- full unconditional waiver.
To get paid on time and protect your lien rights, it’s important to match the lien waiver format and content to these four forms “substantially.” Using your own form or adding unrelated provisions can lead to an invalid lien waiver in the Michigan court system.
Some additional details to know when handling Michigan lien waivers:
- Lien waivers in Michigan cannot be exchanged in advance of work performed, only to the extent of payment received for on-the-job labor and materials.
- Both conditional and unconditional lien waivers are allowed in Michigan. When exchanging unconditional lien waivers, it’s important to only do so after you’ve been paid to protect your lien rights and stay compliant with state law.
- Michigan lien waivers can be executed by an “agent” who can create a lien waiver on behalf of a laborer or group of laborers, or by an individual laborer.
Michigan provides specific statutory forms for progress payments and final payments.
Both conditional and unconditional lien waivers are allowed in Michigan.
Both conditional and unconditional lien waivers are allowed in Michigan.
Michigan lien waivers are considered valid when they:
- are in writing
- follow the outlined format with content specified in state statutes
- are signed by the claimant
Michigan law expressly states that lien rights cannot be waived in the contract; if they are, it becomes “invalid.”
In Michigan, lien rights can only be waived to the extent of payment for labor and material furnished.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers—individually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Michigan requires all parties to use a specific, statutory lien waiver form. Using another format could invalidate your lien rights, as noted in state statutes: “The following forms shall be used in substantially the following format to execute waivers of construction liens.”
Michigan lien waivers must follow the state’s guidelines to be valid and enforceable:
- For partial unconditional, partial conditional, full (final) unconditional, and full (final) conditional lien waivers, forms must follow the format and content of Michigan’s lien waiver forms.
- Fields include, but are not limited to, payment amount, date of service, date signed, address, and telephone number.
- The lien waiver must be signed by the claimant.
In Michigan, advance lien waivers, or waivers exchanged before work begins, are not allowed. Even better, the state declares that waivers are only valid “to the extent that payment for labor and material furnished was actually made to the person giving the waiver.” This means rights cannot be waived in the contract or before payment, offering hefty protection to subs.
Parties must follow guidelines shared in state statutes for the four lien waiver subtypes:
- A partial conditional waiver indicates that you will waive your lien rights for that specific portion of the project after the GC pays the noted amount. This should be exchanged when you submit a pay app for a progress payment.
- A partial unconditional waiver should ideally be exchanged after you receive payment for the specified amount, thus allowing you to waive your right to file a lien on this portion of the project. (If you exchange this waiver before being paid for a Michigan construction job, you surrender your primary leverage for securing payment—and violate state law.)
- A full conditional waiver states that you will waive your lien rights for the entire project, only if the GC pays in full. Submit this waiver with the final pay app to signify a project has ended.
- Lastly, a full unconditional waiver should be exchanged after full payment has been received from the GC, including retention and fees. This waives all of your lien rights on the project.
(If you’re wondering which type of lien waivers to use for your construction project, review this comprehensive guide.)
In Michigan, lien waiver provisions should never be added to the contract. If the lien waiver form doesn’t align “substantially” with the format provided, this could completely nullify your lien rights. Follow the outlined form to a tee to avoid any hassles or confusion.
Here’s some good news regarding Michigan lien waiver disputes: Since lien waiver forms are provided by the state, they’re easily interpreted by the court. Match your lien waiver form to this format to avoid any complications and get paid on time.
If the dispute cannot be resolved directly, consider consulting with a construction law attorney who is familiar with Michigan lien laws.
Before you fill out and exchange Michigan lien waivers, it’s important to understand all the requirements. Find relevant information within the following resources:
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—without ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who’s received the form, who’s opened it, and who has (or hasn’t) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.