Use of the Fund by Members:  Suppliers, Subcontractors and Laborers

As subcontractors, suppliers or laborers, it is imperative to always work with a licensed contractor in order to collect from the Fund. You should check the wall license posted at the place of business, or the pocket card that licensed contractors are required to carry. Working with an unlicensed contractor could prove to be very risky and costly if he or she does not pay the bills.

In order to file a claim against the Fund you must be a current member prior to the date of the contract for which you are making a claim. If you are a subcontractor or supplier and are not already a member of the Fund, you may obtain a membership application from the Michigan Department of Labor & Economic Growth, Construction Lien Program. Supplier members are required to register each retail location by paying an initial membership fee of $50.00 and a membership renewal fee of $30 on June 1^st every 3 years thereafter. Non-Licensed subcontractors are required to pay an initial fee of $50.00 prior to the date of the contract and a membership renewal fee of $30 on June 1^st every 3 years thereafter.

All licensed contractors are required to pay an initial fee of $10.00 upon application for the license and a $10 per year membership renewal fee at the time of license renewal.   You are required to maintain a separate Fund membership for each license that you are issued. Laborers are not required to be members of the Fund before making claims, however, a fee of $15 will be withheld from the first time money awarded to laborers from the Fund and a membership renewal fee of $30 on June 1^st every 3 years thereafter.

To protect your rights under the law, be sure that all necessary records have been kept and that you have filled out the necessary forms in a timely manner and provided them to the proper parties. Once you have become familiar with the process and the forms used, the procedures will not seem so complicated.

We hope that the information provided here will help to simplify the process for you. If you have any questions, you may wish to contact your professional organization, your business agent or an attorney. The information given on this site is a guide to the requirements of the law, but it is not a substitute for legal advice.

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