Get a written Michigan home improvement contract before work starts, including the scope, the price, and the payment schedule. If you sign at home, you generally have 3 business days to cancel in writing. The old Homeowner Construction Lien Recovery Fund was abolished in 2010, so it is not a backup.

What should be in the written agreement?

LARA tells homeowners to use a written contract. At a minimum, you want:

• The contractor's name, address, phone number, and license number, matching the LARA lookup.
• A clear description of the work, including materials or allowances if those are part of the price.
• The total price, a payment schedule, and what's due at signing, at the start, at inspection, and at completion.
• Approximate start and completion dates, and how change orders will be written and priced.
• Permit responsibility, cleanup, and how punch-list items will be finished before final payment.

Read the payment schedule against the work. A demand for most of the money before materials arrive, or for full payment before final inspection, is a reason to revise the contract or hire someone else. Keep a copy of every signed change order. A text that says "sure, add the window" is a poor substitute when the invoice arrives.

If a salesperson presses you to sign the same day, take the draft with you and look the license up first. A short delay is cheaper than a bad contract.

How does the 3-day cancellation right work?

If you sign a home solicitation contract at your home, Michigan's home solicitation sales law generally gives you 3 business days to cancel. LARA's homeowner guidance says to cancel by registered letter. The underlying statutes, including MCL 445.112 and 445.113, describe a written cancellation notice and the way it should be sent.

Count business days, not calendar days. A contract signed at home on Saturday typically starts a different count than one signed on a Monday. The cancellation notice should be in writing, identify the contract, and be sent in a way you can prove. Keep a copy and the mailing receipt.

This right is especially important after an in-home sales visit, a "free inspection" that becomes a pitch, or a storm-chaser visit following wind or hail. If you already paid a deposit, the cancellation statutes also address the return of that money. Ask LARA or an attorney if the contractor refuses to refund it after a timely cancellation.

A contract signed at the contractor's place of business may not carry the same 3-day home-solicitation right. Don't assume every home improvement contract is cancelable for three days. Read the notice of cancellation, if one is attached, and ask where you are signing.

Where do you complain, and why the Recovery Fund is gone?

If the work is poor, incomplete, or abandoned, start with a written punch list and a reasonable deadline. Then you can file a complaint with LARA against a licensed Residential Builder or M&A contractor. Local building officials may also have permit and inspection issues to address. For disputes over money, small claims or a private attorney may still be necessary.

Some older articles still mention a Homeowner Construction Lien Recovery Fund. That fund was abolished in August 2010. Do not plan on a state fund to pay you after a judgment against a builder, and don't let a contractor tell you that the fund will "cover you" if something goes wrong. It isn't there.

Construction liens are still a real issue if subcontractors or suppliers aren't paid. Ask the contractor for a list of subs, and don't make a final payment until you have lien waivers that match the people who worked on the house. If a lien notice arrives, get legal advice quickly rather than ignoring it.

LARA's Residential Builders Section, 517-241-9309, can explain how to file a licensing complaint. A complaint can affect a license. It is not a substitute for civil recovery, especially with the Recovery Fund gone.

Take photos before, during, and after the work, especially if walls, roofs, or drainage are involved. If a complaint or a later buyer disclosure becomes necessary, those photos are more persuasive than a memory of what the yard looked like in March.

If you do cancel within the 3-day window, don't let the crew start work during those three business days. A project that has already begun is harder to unwind, even if the law is on your side about the deposit.

FAQ

Do I need a written contract for a small Michigan home project?

Yes, you should. A written scope, price, and payment schedule protect both sides, and LARA tells homeowners to use written agreements.

How long do I have to cancel if I sign at home?

Generally 3 business days, under the home solicitation sales rules. LARA says to cancel by registered letter. Keep proof of mailing.

Can I still collect from the Homeowner Construction Lien Recovery Fund?

No. The fund was abolished in August 2010. Don't rely on it, and be careful with final payments and lien waivers.

Who takes complaints about a licensed builder?

LARA's Residential Builders Section handles licensing complaints. You may also need local building officials or a private claim for money damages.

Next step

Before you sign a Michigan home improvement contract, talk with a licensed local agent if the work is part of a sale or an insurance claim, and look the contractor up with LARA. Get the terms in writing, and if you sign at home, calendar the 3-business-day cancellation window and use a registered letter if you need to get out.

Sources: LARA, helpful information for homeowners; MCL 445.112, buyer's right to cancel a home solicitation sale; MCL 445.113, notice of cancellation; LARA Residential Builders Section.

In Michigan, residential work totaling $600 or more in labor and materials generally requires a licensed Residential Builder or Maintenance and Alteration contractor. Look the person up in LARA's license search before you sign or pay a deposit. Splitting invoices does not take a larger project under that $600 line.

What's the difference between a Residential Builder and an M&A contractor?

A Residential Builder license is the broader credential for people who contract to build, add onto, or substantially improve a residential structure. A Maintenance and Alteration contractor, often called an M&A licensee, is limited to the trades listed on the license, such as carpentry, concrete, roofing, siding, or other categories LARA recognizes.

Before you hire, ask which license the person holds and which trades are listed. A roofing-only M&A license is not a blank check to remodel a kitchen or build a room addition. A builder license is the usual credential for a general contractor on a larger project.

LARA's Residential Builders Section can be reached at 517-241-9309, and the Department publishes a license lookup. The current Accela-based search lets you check a name or license number. Match the name on the contract, the truck, and the invoice with the name in the database. If a salesperson says a "supervisor" holds the license, look that supervisor up too, and confirm the company is lawfully using it.

Out-of-state references and a social media page are not a Michigan license. If you can't find the person in the lookup, don't hire them for a job that's at or above the $600 threshold.

Does the $600 threshold really include materials?

Yes. LARA tells homeowners that the threshold is $600 or more in labor and materials combined. A $200 labor quote plus $500 in shingles is already over the line. So is a weekend job that grows, through change orders, from a $400 handshake to an $800 invoice.

Treat change orders as part of the same job. If you start below $600 and the scope grows, ask whether the contractor is licensed before you approve the extra work. "We'll just keep it as cash and stay under $600" is a warning sign, not a plan.

Some trades have additional licensing, such as electrical, plumbing, and mechanical work, which can involve other Michigan boards and local permits. A builder or M&A license does not automatically replace a specialized trade license or a local permit. Ask who is pulling the permit and whose license will be on it.

Homeowners sometimes do their own work on a house they occupy. That is a different situation from hiring an unlicensed person and calling them a "helper." If you're hiring someone to contract the job, use the license search.

What else should you check besides the license?

• Get a written description of the work, the price, the payment schedule, and the approximate start and completion dates.
• Avoid large upfront deposits that aren't tied to a material order, and never pay in full before the work is done.
• Confirm local permits and inspections with the city or township, not only with the contractor.
• Ask for proof of insurance, and consider whether a building permit will trigger a need to notify your homeowners insurer.
• Save photos, text messages, and change orders as the job proceeds.

The license lookup can also show disciplinary history or an expired credential. An expired license is not "close enough." If the record looks messy, call LARA and hire someone else.

A careful hire is easier than a complaint after a half-finished roof or a disappeared deposit. The $600 threshold is low enough that many ordinary home projects are covered, including siding, windows, decks, and bathroom remodels.

If a storm or a burst pipe has you hiring under pressure, still do the lookup. Storm-chasing crews sometimes work a neighborhood and leave town. A Michigan license, a local address you can verify, and a written contract are more useful than a door-hanger and a "today-only" price.

For a job that's also an insurance claim, tell the contractor you want the scope to match the insurer's estimate or a written change order, and never sign over a blank assignment of benefits if you don't understand it. Your agent can help you read that paperwork, but the license check is still yours to do.

Ask neighbors for names, then verify those names in LARA anyway. A good reputation and a current license should go together.

FAQ

At what dollar amount does a Michigan home contractor need a license?

Generally $600 or more in labor and materials, combined, for work that requires a Residential Builder or Maintenance and Alteration license.

Where do I look up a contractor?

Use LARA's license search, or call the Residential Builders Section at 517-241-9309. Match the legal name on the contract with the name in the database.

Can a Maintenance and Alteration contractor do any kind of home project?

No. The person is limited to the trades listed on the license. Ask to see those trades, then confirm them in the lookup.

What if the job starts small and then grows?

The total matters. If change orders push the work to $600 or more, a license is required. Don't agree to split invoices to dodge the threshold.

Next step

Before you hire someone for a Michigan home project of $600 or more, talk with a licensed local agent if the work ties into a sale or an insurance claim, and look the contractor up in LARA's license search yourself. Confirm the license type, the listed trades, and the name on the contract.

Sources: LARA, helpful information for homeowners, Residential Builders; LARA contractor license search; LARA, Residential Builders Section.