Improving Your Home? State Reminds Homeowners to Verify Contractors, Pull Permits

Not every family has a Tim “the Tool Man” Taylor in it, and those that do might prefer the skills of a hired professional anyway. But before you start on any home improvement projects this summer, the Michigan Department of Licensing and Regulatory Affairs has a few do’s and don’ts to keep in mind.

Verify a Builder/Contractor License

Before hiring (and paying) a contractor for your desired project, LARA recommends you double and triple check your chosen contractor is properly licensed.

“Selecting a properly licensed contractor is the first and most important step in making home improvements,” said LARA Director Steven H. Hilfinger, in a prepared statement. “Ask to see a copy of their license then take a few minutes to look up the license online or give us a call. Those few minutes spent at the beginning of the project may prevent big problems later.” 

To check on residential builders, maintenance and alteration contractors, use the online license search available on the state website or call LARA’s Bureau of Commercial Services Licensing Division at 517-373-8376.

For contractors, such as electricians, plumbers and mechanical contractors, visit www.michigan.gov/bcclicense or call 517-241-9313 to verify that individual has a license that corresponds to the work contracted to be done.

Search for local contractors using Farmington-Farmington Hills Patch's Directory. Read reviews posted by your neighbors and submit your own review based on experience.

Pull the Right Permit

Even if you’re 99.9 percent sure your project doesn’t require a permit, be sure to call the City of Farmington building department, 248-473-7250, or check the list in the building section of the Farmington Hills city website.

Generally, permits are required for: 

• New buildings
• Additions (bedrooms, bathrooms, family rooms, etc.)
• Residential work (decks, garages, fences, fireplaces, pools, water heaters, etc.)
• Renovations (garage conversions, basement furnishings, kitchen expansions, reroofing, etc.)
• Electrical systems
• Plumbing systems
• HVAC (heating, ventilating and air-conditioning) systems

“In today’s economy, do-it-yourself home improvement projects make financial sense.  But it’s important for homeowners to remember that even if they do the work themselves, they are responsible for obtaining building permits too,” Hilfinger said, in a prepared statement. “Checking with your local or state building officials ahead of time could save you costly mistakes in the long run.”

If the improvements are being made with the intention of selling the home, a permit is even more crucial as property insurers may not cover work done without permits and inspections, so the value of the property could be affected.

No Work, No Pay

LARA reminds homeowners they should pay in partial payments or installments until the entire project is completed and checks out.  

“Consumers should never pay for the entire job in advance or before their project is completed,” Hilfinger said.  “Customarily, pay no more than one third of the total contract price in advance.

Homeowners are inviting trouble if they pay the full contract price amount at the start of a job or prior to completion.”

LARA also recommends paying only by check or credit card–never cash–and before making the final payment, make sure the work is inspected and approved, as well as the job site cleaned up, and the suppliers and contractors paid.

Before contracting with an individual or company, get three written estimates based on the same work to allow for comparison and don't automatically choose the lowest bidder.

Once you've made your decision, ask the contractor, subcontractor and suppliers for a completed and signed “waiver of lien” form. This will prevent a subcontractor or material supplier from putting a lien on your home if the contractor doesn’t pay the bills. This can happen even if you paid the contract in full.