Most Michigan Contractors are hardworking, honest, skilled and dependable.

Before you hire a contractor for new construction or home remodeling work, the City's Development Services Department recommends the following steps:

1. Ask to see the contractor's license and write down the license number for future reference. All licensed contractors should present you with a business card that should contain the contractor's license number. Check with the Michigan Department of Consumer and Industry Services to verify the validity and current status of the contractor's license www.cis.state.mi.us. In addition, operator assistance is available for a fee of $1.50 per minute, plus possible line charges at (900) 555-8374. You also have the option of obtaining written verification by sending your request along with a $5.00 check or money order made payable to the State of Michigan to: Michigan Department of Consumer and Industry Services
   License Verification Unit
   P.O. Box 30189
   Lansing, MI 48909
2. Get recommendations from friends or Neighbors. Use a well-established contractor. Ask the contractor to give you references. Then call the references, ask questions and take a look at the contractor's previous work.
3. Ask the contractor if the company is insured against claims covering worker's compensation, property damage and general liability.
4. Get all estimates in writing! Estimates should be very specific and should include exactly what services you'll be getting for the estimated cost. If a biding process is used, ensure that the estimated costs are based on the same set of specifications. Get a written contract that specifies all work to be done and make sure a completion date is included on the contract.
5. Be sure to see the building permit before work starts. The building permit should not be in your name, but rather the name of the contractor. Never obtain the building permit yourself for work being done by a contractor. By doing so, you assume all the risks and it will be difficult to recoup money for inferior work.

NOTE: All electrical, plumbing, and mechanical (heating and/or air conditioning) work must be done by a Michigan Licensed Contractor. Property owners may do their own work but only for their own residence. Property owners may not complete electrical, plumbing, or mechanical work on rental or commercial property unless they hold a Michigan State Contractors License and they obtain a building permit prior to the start of the project.

Signing a Contract

• Always get three bids or estimates before signing a contract or giving the contractor a deposit.
• Call the Bureau of Commercial Services, Contractor Licensing Division 1-900-555-8374 for a licensing verification, Monday through Friday, 8AM to 5PM, or verify online at www.cis.state.mi.us/bcs/enf/forms.htm.
• Each contractor should have a contractors number listed on his contract that you can use to verify with the Licensing Division.
• Make sure the work to be done is in writing on the contract regardless of how minute.
• Make sure all warranties are listed on the contract - and are not verbal.
• Make sure you read all the fine print on your contract and understand it, or ask your contractor to explain before you sign the contract.
• Include in the contract that the contractor will supply you with a contractors Final Affidavit (of no liens) when the job is completed and that a final inspection has been approved before you give him final payment.

Warning Signs That a Contractor is Unlicensed

• May request a large down payment in cash or a check made out to cash prior to doing any work. They may even offer to drive you to the bank to obtain the funds.
• May ask you to obtain the permit or advise you that you don't need a permit. If you would just call the Development Services Department at 424-6547 or 424-6548, our staff will be more than happy to advise you whether or not a permit is required for your particular job.
• May not provide the consumer with a written contract or guarantee.
• May not have a valid contractor's number on their contracts or advertisements.
• May not carry general liability or worker's compensation insurance.
• Often want to do the construction work on weekends.
• May promise you a large discount if you sign up immediately.
• Normally target the elderly, uninformed, young and inexperienced.
• Normally use unmarked vans or trucks.
• May become abusive and threatening when you refuse to do business with them. Call the police if this occurs.
• May claim to have just completed a job down the street and has left over materials from that job and then offers to do the work really cheap.
• May not have a street address and only has a P.O. Box OR lists a hotel / motel as his address.
• Beware of people wanting to do a free home inspection. Always verify that they are a licensed contractor prior to allowing them to do such inspections.
• Beware of people soliciting to do roof repair, asphalt or texture coating of driveways.
• Beware of contractors wanting to use your home as a demonstration model.
• DO NOT give a deposit or sign a contract until you have confirmed that the contractor is licensed. Ask the contractor to leave the contract with you and come back the next day. This gives you the time to look it over without being pressured or intimidated. Also, you can contact the Development Services Department at 424-6547 or 424-6548 if you suspect a possible problem or if you would like to check if the contractor has the proper license.