Michigan Residential Builders License Practice Test

What is the FIRST document that needs to be filled out to initiate the lien process?

1. The notice of commencement

2. The lien waiver

3. The payment bond

4. The affidavit of completion

The correct answer is: The notice of commencement

The first document that needs to be filled out to initiate the lien process is the notice of commencement. This document serves as an official declaration that a construction project has begun and is vital for establishing the timeline and the legal rights of parties involved. Filing the notice of commencement is essential because it notifies potential lien claimants about the project and the parties involved, providing critical information about who to contact regarding the project and deadlines for filing a lien. It also serves to protect the homeowner by ensuring that subcontractors and suppliers are aware of the legal framework surrounding the project, thereby helping to prevent future disputes over payments and claims against the property. While other documents, such as the lien waiver or payment bond, play important roles in the construction and payment processes, they do not initiate the lien process. The affidavit of completion typically follows the lien process and confirms that the work is done, making the notice of commencement the first step in this legal framework.