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The Michigan Sworn Form is a crucial document in the construction industry, ensuring transparency and accountability among contractors, subcontractors, and suppliers. This form serves as a sworn statement, where the contractor or subcontractor affirms their role in a specific improvement project on real property within Michigan. It outlines the names of all subcontractors, suppliers, and laborers involved, along with the amounts due for work performed, making it clear what payments are outstanding. Importantly, the form also asserts that no additional parties have been contracted outside of those listed, thus protecting the property owner from unexpected claims. The contractor must affirm that the property is free from claims of construction liens, except as specifically noted. However, a warning is included, reminding owners that relying solely on this statement does not eliminate the risk of claims from subcontractors or suppliers who have provided proper notice. Additionally, the document emphasizes the seriousness of providing false information, as it carries criminal penalties. This form is not just a formality; it plays a vital role in maintaining trust and integrity in construction projects across the state.

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SWORN STATEMENT

 

State of

 

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

Project Name:

 

Address

 

That the following is a statement of each subcontractor and supplier and laborer, for which 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 lessees 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:

 

Subcontractor,

Type of Improvement

Total

Adjusted

Amount

Amount

Balance to

No.

Contract

Contract

Currently

Supplier, or Laborer

Furnished

Already Paid

Complete

 

Price

Price

Owing

 

 

 

 

 

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That the contractor has not procured material from, or subcontracted with, any person other than set forth and owes no money for the improvement other than the sums set forth above.

Deponent further says that he or she makes the foregoing statement as the (contractor) (subcontractor)

or as of the (contractor) (subcontractor) for the purpose of representing to the owner or lessee of the above described premises and his or her agents that the above described property is free from claims of construction liens, or the possibility of construction liens, except as specifically set forth above and except for claims of construction liens by laborers which may be provided pursuant to section 109 of the construction lien act, Act NO. 497 of the Public Acts of 1980, as amended, being section 570.1109 of the Michigan Compiled Laws.

WARNING TO OWNER: AN OWNER OR LESSEE OF THE ABOVE DESCRIBED PROPERTY MAY NOT RELY ON THIS SWORN STATEMENT TO AVOID THE CLAIM OF A SUB-CONTRACTOR SUPPLIER, OR LABORER WHO HAS PROVIDED A NOTICE OR FURNISHING OR A LABORER WHO MAY PROVIDE A NOTICE OF FURNISHING PURSUANT TO SECTION 109 OF THE CONSTRUCTION LIEN ACT TO THE DESIGNEE OR TO THE OWNER OR LESSEE IF THE DESIGNEE IS NOT NAMED OR HAS DIED

WARNING TO DEPONENT: A PERSON, WHO WITH INTENT TO DEFRAUD, GIVES A FALSE SWORN STATEMENT IS SUBJECT TO CRIMINAL PENAL TIES AS PROVIDED IN SECTION 110 OF THE CONSTRUCTIN LIEN ACT. ACT NO. 497 OF THE PUBLIC ACTS OF 1980, AS AMENDED, BEING SECTION 570.1110 OF THE MICHIGAN COMPILED LAWS.

 

 

 

Deponent

Subscribed and sworn to before me this

 

day of

 

20 _____

 

 

Notary Public,

 

County, Michigan

My commission expires:

 

 

 

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Form Specifications

Fact Name Description
Purpose The Michigan Sworn Statement is used to declare the status of payments owed to subcontractors, suppliers, and laborers involved in a construction project.
Governing Law This form is governed by the Michigan Construction Lien Act, Act No. 497 of the Public Acts of 1980.
Parties Involved The form involves contractors, subcontractors, suppliers, laborers, and property owners or lessees.
Statement of Payments It includes a statement detailing unpaid wages, fringe benefits, and withholdings owed to subcontractors and laborers.
Notary Requirement The form must be signed and sworn before a notary public to be considered valid.
Criminal Penalties Providing false information on the form can lead to criminal penalties under Section 110 of the Construction Lien Act.
Owner's Warning Owners or lessees are warned that reliance on the sworn statement does not protect against claims from subcontractors or laborers who provide proper notice.
Information Required The form requires details such as project name, address, and amounts owed to each subcontractor and supplier.
Claims of Construction Liens The statement aims to assure that the property is free from claims of construction liens, except as noted in the form.
Expiration of Notary Commission The notary public's commission expiration date must be included on the form to ensure its validity.

Michigan Sworn: Usage Guidelines

Completing the Michigan Sworn form is essential for contractors and subcontractors involved in construction projects. This form requires accurate information about payments owed to subcontractors, suppliers, and laborers. Follow the steps below to ensure the form is filled out correctly.

  1. Begin by entering the State and County at the top of the form.
  2. Write your name in the space provided, identifying yourself as the contractor or subcontractor.
  3. Provide the Project Name and Address of the property related to the improvement.
  4. List each subcontractor, supplier, or laborer in the designated fields. Include their names and the type of improvement they provided.
  5. Fill in the Total Contract Price and Adjusted Amount for each listed entity.
  6. Indicate the Amount Already Paid and the Balance Owing for each subcontractor, supplier, or laborer.
  7. Sum the totals for all entries in the respective columns.
  8. Confirm that no other subcontractors or suppliers have been omitted. State that you owe no additional money for the improvement.
  9. Indicate your role again as either the contractor or subcontractor.
  10. Sign the form where indicated, ensuring your signature is dated.
  11. Have the form notarized by a Notary Public, who will complete their section and provide their commission expiration date.

After completing the form, it is crucial to review all entries for accuracy. Once finalized, submit the form to the appropriate parties involved in the construction project to ensure compliance and protect against potential claims.

Your Questions, Answered

What is the Michigan Sworn Form?

The Michigan Sworn Form is a legal document used by contractors and subcontractors to provide a sworn statement regarding payments owed to subcontractors, suppliers, and laborers for construction projects. This form helps ensure that all parties involved in a project are aware of any outstanding payments and serves to protect property owners from potential construction liens.

Who needs to complete the Michigan Sworn Form?

Typically, the contractor or subcontractor responsible for a construction project must complete this form. It is essential for those who have contracted with the owner or lessee of the property to disclose any unpaid amounts owed to subcontractors, suppliers, or laborers.

What information is required on the form?

The form requires detailed information about the project, including the project name, address, and a list of subcontractors, suppliers, and laborers. For each entity listed, the form asks for the type of improvement, total contract price, amounts already paid, and the balance still owing. This transparency helps ensure that all financial obligations are clear.

What are the consequences of providing false information?

Providing false information on the Michigan Sworn Form can lead to serious legal consequences. If someone knowingly submits a false sworn statement with the intent to defraud, they may face criminal penalties under the Michigan Construction Lien Act. This underscores the importance of accuracy and honesty when filling out the form.

How does this form protect property owners?

The Michigan Sworn Form serves as a protective measure for property owners by documenting that all subcontractors, suppliers, and laborers have been paid or that any outstanding claims are specifically noted. However, owners should be aware that relying solely on this document may not fully protect them from claims if proper notice has not been provided by subcontractors or laborers.

Is notarization required for the Michigan Sworn Form?

Yes, notarization is a crucial part of the Michigan Sworn Form. The individual completing the form must sign it in the presence of a notary public, who will then verify the identity of the signer and affix their seal. This adds an extra layer of authenticity and legal standing to the document.

Can the form be modified or customized?

While the Michigan Sworn Form has a standard structure, it may be tailored to fit specific project needs. However, any modifications should still comply with Michigan law and maintain the essential elements required by the Construction Lien Act. Consulting with a legal professional before making changes is advisable.

Where can I obtain the Michigan Sworn Form?

The Michigan Sworn Form can typically be obtained from various legal resources, including online legal document providers, local government offices, or legal aid organizations. It’s important to ensure that you are using the most current version of the form to comply with legal requirements.

Common mistakes

  1. Failing to provide accurate information about the contractor or subcontractor. Ensure that the names and details are correct and match official records.

  2. Omitting the project name and address. This information is crucial for identifying the specific work being referenced.

  3. Not listing all subcontractors, suppliers, and laborers. Every entity that has provided services or materials must be included to avoid legal complications.

  4. Incorrectly calculating the total adjusted amount or amount currently owing. Double-check all figures to ensure accuracy.

  5. Failing to sign the document in the appropriate section. The deponent must sign to validate the statement.

  6. Neglecting to have the document notarized. A notary public must witness the signing to give it legal weight.

  7. Overlooking the warnings provided in the form. Understanding these warnings is essential to avoid potential legal issues.

  8. Not keeping a copy of the sworn statement for personal records. Retaining a copy can help resolve any disputes that may arise later.

Documents used along the form

When dealing with construction projects in Michigan, several forms and documents are often used alongside the Michigan Sworn Statement. These documents help clarify obligations, protect rights, and ensure compliance with state laws. Below is a list of some commonly associated documents.

  • Construction Lien Waiver: This document is used to waive the right to file a lien against a property for unpaid work or materials. It is typically signed by subcontractors or suppliers upon receiving payment.
  • Notice of Furnishing: This notice informs the property owner that a subcontractor or supplier has provided labor or materials for a project. It is essential for establishing lien rights under Michigan law.
  • Contractor Agreement: This is the formal contract between the property owner and the contractor. It outlines the scope of work, payment terms, and other essential details regarding the construction project.
  • Subcontractor Agreement: Similar to the contractor agreement, this document outlines the relationship between the contractor and subcontractors, detailing the work to be performed and payment terms.
  • Payment Application: This form is submitted by contractors to request payment for work completed. It typically includes details about the work done and the amounts owed.
  • Final Affidavit: This document is often required at the end of a project. It certifies that all subcontractors and suppliers have been paid, protecting the owner from potential lien claims.
  • Change Order: A change order is a document that modifies the original construction contract. It details changes in the scope of work, costs, or project timeline.

Understanding these documents is crucial for anyone involved in construction projects in Michigan. They help ensure that all parties are aware of their rights and responsibilities, ultimately contributing to a smoother construction process.

Similar forms

  • Affidavit: An affidavit is a written statement confirmed by oath or affirmation, similar to the Michigan Sworn form. Both documents require the signer to declare the truthfulness of the information provided under penalty of perjury.
  • Certificate of Completion: This document certifies that a construction project has been completed. Like the Michigan Sworn form, it often serves to assure parties involved that all contractual obligations have been met, including payment to subcontractors and suppliers.
  • Mechanic's Lien Waiver: A mechanic's lien waiver is used to relinquish a party's right to file a lien against a property. This is similar to the Michigan Sworn form, which aims to confirm that there are no outstanding claims against the property for unpaid work.
  • Payment Application: A payment application is a request for payment from a contractor to an owner. It shares similarities with the Michigan Sworn form in that it details the work completed and the amounts owed, ensuring transparency in financial transactions.
  • Subcontractor Agreement: This document outlines the terms between a contractor and a subcontractor. It is akin to the Michigan Sworn form as it specifies the scope of work and payment obligations, which are crucial for protecting all parties involved.
  • Statement of Work: A statement of work defines the work to be done under a contract. Like the Michigan Sworn form, it clarifies responsibilities and expectations, helping to prevent disputes over unpaid work.
  • Lien Release: A lien release is a document that confirms a lien has been satisfied. This is similar to the Michigan Sworn form in that both documents aim to eliminate claims against a property, ensuring that the owner is free from financial encumbrances.
  • Contractor’s Affidavit: This affidavit asserts that a contractor has fulfilled all obligations under a contract. It parallels the Michigan Sworn form by providing assurance to property owners that all payments have been made to subcontractors and suppliers.
  • Final Release of Liens: This document is issued at the end of a project, confirming that all parties have been paid. It shares a purpose with the Michigan Sworn form, as both documents aim to protect property owners from unexpected claims after project completion.
  • Owner’s Affidavit: This affidavit is often signed by property owners to confirm that they have received all necessary documentation regarding payments made to contractors and subcontractors. It is similar to the Michigan Sworn form in its function of providing assurance against future claims.

Dos and Don'ts

When filling out the Michigan Sworn form, attention to detail is crucial. The accuracy of the information provided can have significant implications for all parties involved. Here are five essential do's and don'ts to consider:

  • Do ensure accuracy: Double-check all names, amounts, and project details before submitting the form.
  • Do provide complete information: List all subcontractors, suppliers, and laborers involved in the project.
  • Do sign in front of a notary: The form must be sworn and signed in the presence of a notary public to be valid.
  • Do keep a copy: Retain a copy of the completed form for your records and future reference.
  • Do understand the legal implications: Familiarize yourself with the construction lien act and the potential consequences of providing false information.
  • Don't omit information: Avoid leaving out any subcontractors or unpaid balances, as this can lead to legal issues.
  • Don't use vague language: Be specific about the types of improvements and the amounts owed to each party.
  • Don't forget to date the form: Ensure that the date is clearly indicated, as this is essential for the validity of the document.
  • Don't ignore warnings: Pay attention to the warnings provided in the form regarding potential criminal penalties for false statements.
  • Don't rush the process: Take your time to fill out the form carefully to avoid mistakes that could have serious repercussions.

Misconceptions

  • Misconception 1: The Michigan Sworn form guarantees payment to subcontractors and suppliers.
  • This form does not guarantee payment. It simply states what is owed as of the date it is signed.

  • Misconception 2: Once the form is signed, the contractor is free from all claims.
  • Signing the form does not eliminate the possibility of claims from subcontractors or suppliers who have provided notice under the Construction Lien Act.

  • Misconception 3: The form only needs to be filled out by the contractor.
  • Both contractors and subcontractors may be required to complete this form depending on their role in the project.

  • Misconception 4: The amounts listed on the form are final and cannot change.
  • The amounts can change if there are adjustments or additional claims made after the form is completed.

  • Misconception 5: Owners are fully protected from liens if they have this form.
  • Owners may still face claims from laborers or subcontractors who have not been properly notified, despite having this form.

  • Misconception 6: The form is optional for contractors.
  • In many situations, especially in construction projects, this form is required to ensure compliance with state laws.

  • Misconception 7: Notaries are not necessary for the validity of the form.
  • A notary is essential to verify the identity of the signer and to make the document legally binding.

  • Misconception 8: The form can be filled out after the project is completed.
  • This form should be completed while the project is ongoing to accurately reflect any outstanding payments.

  • Misconception 9: The form protects the contractor from criminal penalties.
  • Providing false information on this form can lead to serious criminal penalties, regardless of the contractor's intent.

  • Misconception 10: All contractors are familiar with the requirements of the form.
  • Not all contractors may understand the legal implications of the form, making it essential to seek guidance when needed.

Key takeaways

Filling out the Michigan Sworn form is an important step for contractors and subcontractors involved in construction projects. Here are some key takeaways to keep in mind:

  • Accurate Information is Crucial: Ensure all details regarding subcontractors, suppliers, and laborers are accurate and complete. This includes their names, the type of improvement, and the amounts owed.
  • Understand the Purpose: The form serves to inform the property owner or lessee that the property is free from claims of construction liens, except for those specifically mentioned.
  • Complete All Sections: Every section of the form must be filled out, including project name and address, to avoid any potential issues later on.
  • List All Parties: Include every subcontractor, supplier, and laborer involved in the project. Omitting any can lead to complications regarding payments and liens.
  • Legal Consequences: Be aware that providing false information on this form can lead to serious criminal penalties. Honesty is essential.
  • Notary Requirement: The form must be signed in front of a notary public. This adds an additional layer of verification to the information provided.
  • Owner's Caution: Property owners should not rely solely on this sworn statement to avoid claims from subcontractors or suppliers who have provided notice of furnishing.
  • Review Before Submission: Always review the completed form for accuracy and completeness before submitting it. Errors can have significant consequences.

By keeping these points in mind, you can navigate the process of filling out and using the Michigan Sworn form more effectively, ensuring compliance and protecting your interests.