Protect your investment by vetting home contractors

METRO DETROIT — Whether you’re building a house, remodeling a bathroom or getting your roof repaired, hiring the right contractor makes all the difference.

Industry leaders say the first order of business is to reach out to your municipality to find out what your local requirements are.

“The first thing to do is tell your local building department what you’re looking to do, ask what kind of permits are needed, and ask, more specifically, what they should be looking for in a contractor,” said Giles Tucker, community development director for Madison Heights. “The reason for that is that some municipalities will have rules that others don’t.”

Another important step is to make sure the contractors you’re looking into are licensed and qualified to do the type of work you need.

“Most people neglect to qualify contractors,” said Ray Safadi, of PC Contracting in St. Clair Shores. “The way you qualify them is to, first of all, make sure that they are licensed with the state of Michigan and have an actual registration with the state and a license.”

The Michigan Department of Licensing and Regulatory Affairs allows Michiganders to verify a license for a contractor on its site at michigan.gov/lara. LARA’s Bureau of Construction Codes oversees the licensing of professionals who build, repair or renovate residential structures.

“If a contractor can’t provide their license number or a copy of their license, that’s a red flag,” Bureau of Construction Codes Director Andrew Brisbo said in a prepared statement. “Consumers should always verify credentials before the work begins.”

You also want to make sure that contractors are bonded and insured.

As with any project, it’s important to get estimates from at least three different contractors. The estimate should specify the total price, terms of payment, the kind of materials to be used and the expected time it will take to complete the job.

“I wouldn’t necessarily go with the lowest bid. There are a lot of differences in quality of contractors and the cheapest person is not always the best person,” said Tucker.

Once you’ve decided whom to hire, get all agreements in writing to make sure there are no misunderstandings about the work or the terms of the contract.

“Make sure you have a written, executed full contract of the items that are going to be taken care of — not implied, but that are going to be taken care of, word for word, in black and white — in a signed contract,” Safadi said.

Last but not least, you should be wary of an unusually large down payment and instead agree to set up a payment schedule of installments to be paid as the job progresses.

“You shouldn’t be cutting a check for work that hasn’t been done,” Tucker said. “Although I will say that contractors are usually using the money they are getting for the job to help pay for the material of the job, so it’s not uncommon for them to ask for some funds up front to start the work, but splitting up the total cost of the project in payments is a good way to make sure you’re not out of that money and with an unfinished project, if you have a contractor that is not able to complete the work.”

Safadi said  PC Contracting normally asks for a small percentage down — around 30% to begin — another 30% after the job is just about halfway completed, and the balance upon completion.

“Once the job is done, the homeowner has to make sure they check everything and make sure it’s to their specifications,” he said. “Then, if it is, great. You can give them the money. If not, you have something to fall back on, (by saying) ‘You finish this, then you will get the rest of your money.’”

For questions about contractor licensing or to verify a license, visit michigan.gov/lara or email LARA-BCC-Licensing@Michigan.gov.