InstaBidsWhat is a contractor's sworn statement in Michigan, and when should you ask for one?
It is a statement that, under MCL section 570.1110, shall list each subcontractor and supplier with whom the contractor has contracted relative to the improvement. The same section says a contractor shall provide one when payment is due, when the contractor requests payment, or when a demand has been made by or on behalf of the owner.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
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Key facts
- MCL section 570.1110(1): "(a) When payment is due to the contractor from the owner or lessee or when the contractor requests payment from the owner or lessee."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
- MCL section 570.1110(4): "A sworn statement shall list each subcontractor and supplier with whom the person issuing the sworn statement has contracted relative to the improvement to the real property."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
- MCL section 570.1110(8): "An owner, lessee, designee, mortgagee, or contractor may rely on a sworn statement prepared by a party other than himself or herself to avoid the claim of a subcontractor, supplier, or laborer unless the subcontractor, supplier, or laborer has provided a notice of furnishing as required under section 109 or unless the notice of furnishing is excused under section 108 or 108a."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
- MCL section 570.1110(9): "However, the contractor is not entitled to any payment, and a complaint, cross-claim, or counterclaim may not be filed to enforce the construction lien, until the sworn statement has been provided."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
What does a Michigan sworn statement have to list?
It shall list each subcontractor and supplier with whom the contractor has contracted relative to the improvement, and the laborers for whom payment for wages or fringe benefits and withholdings are due but unpaid. Section 570.1110(4) sets out both lists and a form, and the relevant lines are quoted below in their own words.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
MCL section 570.1110(4), read 22 October 2026, says: "A sworn statement shall list each subcontractor and supplier with whom the person issuing the sworn statement has contracted relative to the improvement to the real property."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
The same subsection continues: "The sworn statement shall contain a list of laborers with whom the person issuing the sworn statement has contracted relative to the improvement to the real property and for whom payment for wages or fringe benefits and withholdings are due but unpaid and the itemized amount of such wages or fringe benefits and withholdings."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
The form in the statute includes this line: "The contractor has not procured material from, or subcontracted with, any person other than those set forth and owes no money for the improvement other than the sums set forth."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(5) adds: "The contractor or subcontractor is not required to list in the sworn statement material furnished by the contractor or subcontractor out of his or her own inventory that was not purchased specifically for performing the contract."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Giving a false sworn statement can be a crime. Section 570.1110(11) says a contractor or subcontractor who desires to draw money and gives an owner a sworn statement required by this section that is false, with intent to defraud, is guilty of a crime. Its opening words are quoted below; the subsection then sets out the penalty tiers.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(11) says: "A contractor or subcontractor who desires to draw money and gives or causes to be given to any owner or lessee a sworn statement required by this section that is false, with intent to defraud, is guilty of a crime as follows:"
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
When does a Michigan contractor have to give you one?
When payment is due or the contractor requests payment, and when a demand has been made by or on behalf of the owner. Section 570.1110(1) names both, and subsection (9) says what happens to a contractor's payment until the statement is provided; both are quoted below.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(1) says: "A contractor shall provide a sworn statement to the owner or lessee in each of the following circumstances:" It lists "(a) When payment is due to the contractor from the owner or lessee or when the contractor requests payment from the owner or lessee." and "(b) When a demand for the sworn statement has been made by or on behalf of the owner or lessee."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
For subcontractors, section 570.1110(2) says: "A subcontractor shall provide a sworn statement to the owner or lessee when a demand for the sworn statement has been made by or on behalf of the owner or lessee and, if applicable, the owner or lessee has complied with the requirements of subsection (6)."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(9) says: "If a contractor fails to provide a sworn statement to the owner or lessee before recording the contractor's claim of lien, the contractor's construction lien is not invalid. However, the contractor is not entitled to any payment, and a complaint, cross-claim, or counterclaim may not be filed to enforce the construction lien, until the sworn statement has been provided."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Can you rely on the sworn statement when you pay?
Not always. Section 570.1110(8) says an owner may rely on a sworn statement prepared by a party other than himself or herself unless the subcontractor, supplier, or laborer has provided a notice of furnishing as required under section 109 or unless the notice of furnishing is excused, and the form itself carries a warning to the owner. Both are quoted below.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(8) says: "An owner, lessee, designee, mortgagee, or contractor may rely on a sworn statement prepared by a party other than himself or herself to avoid the claim of a subcontractor, supplier, or laborer unless the subcontractor, supplier, or laborer has provided a notice of furnishing as required under section 109 or unless the notice of furnishing is excused under section 108 or 108a."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
The form's warning reads: "WARNING TO OWNER OR LESSEE: AN OWNER OR LESSEE OF THE PROPERTY SHALL NOT RELY ON THIS SWORN STATEMENT TO AVOID THE CLAIM OF A SUBCONTRACTOR, SUPPLIER, OR LABORER WHO HAS PROVIDED A NOTICE OF FURNISHING OR A LABORER WHO MAY PROVIDE A NOTICE OF FURNISHING UNDER SECTION 109 OF THE CONSTRUCTION LIEN ACT, 1980 PA 497, MCL 570.1109, TO THE DESIGNEE OR TO THE OWNER OR LESSEE IF THE DESIGNEE IS NOT NAMED OR HAS DIED."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
In our reading, the notices of furnishing you have received are worth keeping next to each sworn statement.
What must you do with a sworn statement, and can you withhold?
Give notice of its receipt and, on request, a copy. Section 570.1110(6) says that on receipt of a sworn statement regarding an improvement to a residential structure, the owner shall give notice of its receipt, either in writing, by telephone, or personally, and shall provide the requester a copy within 10 business days after receiving the request. Who gets the notice is quoted below in its own words.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(6) says: "On receipt of a sworn statement regarding an improvement to a residential structure, the owner, lessee, or designee shall give notice of its receipt, either in writing, by telephone, or personally, to each subcontractor, supplier, and laborer who has provided a notice of furnishing under section 109 or, if a notice of furnishing is excused under section 108 or 108a, to each subcontractor, supplier, and laborer named in the sworn statement."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
It goes on: "If a subcontractor, supplier, or laborer entitled to notice under this subsection requests a copy of the sworn statement, the owner, lessee, or designee shall provide the requester a copy within 10 business days after receiving the request."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Can you withhold? Yes, after the sworn statement is provided. Section 570.1110(7) says the owner may withhold an amount sufficient to pay all sums due to subcontractors, suppliers, or laborers, as shown by the sworn statement, and may directly pay subcontractors, suppliers, or laborers the amount they are due as shown by the sworn statement. Its words, and the notice it requires the first time, are quoted below.
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
Section 570.1110(7) says: "After the contractor or subcontractor provides the sworn statement, the owner or lessee may withhold or, upon written demand from the contractor, shall withhold from the amount due or to become due to the contractor or to the subcontractor for work already performed an amount sufficient to pay all sums due to subcontractors, suppliers, or laborers, as shown by the sworn statement, or due to lien claimants who have provided a notice of furnishing under section 109."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
It continues: "From the amount withheld, the owner or lessee may directly pay subcontractors, suppliers, or laborers the amount they are due as shown by the sworn statement." The next sentence says: "If the contract provides for payments by the owner to the general contractor in the normal course of construction, but the owner elects to pay lien claimants directly under this section, the first time the owner elects to make payment directly to a lien claimant, he or she shall provide at least 5 business days' notice to the general contractor of the intention to make direct payment."
Source: MCL section 570.1110, Sworn statement by contractor or subcontractor (Construction Lien Act, Act 497 of 1980; Michigan Legislature), read 22 October 2026.
This page quotes one Michigan statute. Other states handle subcontractor and supplier claims in their own laws, so read your own state's statute if your home is outside Michigan.
How can you use a sworn statement at each payment?
Ask for a sworn statement in writing before every payment, and compare it with the notices you have received before you pay. Keep each statement, each notice and each payment record together, in date order, so you can see who was owed what at each stage. This is practical reasoning, not legal advice and not a finding from any agency.
- Before you sign, ask the contractor to agree in writing to give you a sworn statement with every payment request.
- Keep every notice of furnishing that arrives about your job, with the date it reached you.
- When a sworn statement arrives, check that every subcontractor and supplier who sent you a notice is on its list, and that the amounts owing make sense against what you have paid so far.
- If someone who sent you a notice is missing from the statement, ask the contractor about it in writing before you pay.
- Pay by a method that leaves a record, such as a bank transfer, and note the payment stage in the memo.
- If a payment is large or a lien claim arrives, consider asking a Michigan lawyer before you pay anyone a second time.
Who sees your contact details when you post on InstaBids?
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Source: InstaBids process and privacy, live-page excerpts, read 22 October 2026.
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