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Choosing A Michigan Builder


Building or remodeling your home can be a great investment. Like an experienced money manager you need to to find and experience builder that can manage your project. As you begin to choose the right builder take some important steps to ensure that you get the builder you need.

First off it's a good idea to write down what you want done. Getting a note book will help you collect your ideas and collecting the ideas of builders that will come out and give you estimates. Taking good notes when you have a big project will help out when questions arise between you and your builder/sub contractors.

In order to find a builder there are lots of resources available.

  • Phone Book
  • Neighbors
  • Friends and Family
  • Internet (This Site)
  • Local Home Builders Association

Once you have decided what resource(s) you will use choose at least three to give you estimates. If any of those estimates are over $600.00 dollars the individual must have be licensed by the Department of Labor and Economic Growth in the state of Michigan. A residential builder is allowed to complete a whole structure or remodel an entire structure and includes all of the tasks of a maintenance and alteration contractor. A maintenance and alteration contractor is able to do the following: basement waterproofing, carpentry, concrete, excavation, structure wrecking, insulation, masonry, painting, roofing, screen and storm sash, gutters, siding, swimming pools, and tile.

When the builder shows up for the estimate use this time to ask questions about not only your project but also about his business and his business practices.

  • Ask to see the Michigan license.
  • Ask to see his insurance and bonding forms.
  • Ask to see photos or site locations of his/her work.
  • Ask to get the estimate in writing.
  • Ask for some references.
  • Ask to see a copy of their contract and change order procedures

These are common questions and the builders should not feel intimidated by you asking these questions. If they cannot at least provide you with the answer then just move onto the next builder. Always be courteous during the estimation. If the builder finds that you are difficult to work with he may not be so eager to make you his/her client. If you do not feel the builder will be the best fit for your project just kindly take his estimate and move onto the next builder. Just remember to be polite and courteous when getting your estimates.

Once the estimates are all in then look them over and make sure that you have everything in writing. If something is left out just ask the builder to add it to the estimate so that you know what is included in the estimate. Just remember that sometimes things are left out due to human error or a misunderstanding.

When you have picked a builder the next issue is to everything put together into the contract. A contract is a legal binding form that states the work that will be completed, who will complete it, where it will be completed, when it will be completed, and the cost. Here are some key items that should be included in a contract.

  • Company name, address, phone, and license number.
  • Detail job specifications. This could include brand names, product details, product styles, etc.
  • Project start and stop dates.
  • Building permits, legal paperwork, building permits, and other building requirements.
  • Insurance and bonding documents.
  • Statements of warranty.
  • Credits for left over materials or other returnable items.
  • Terms of the contract.
  • A Right to Cancel statement.

Before signing a contract you may find it necessary to get legal advice. This advice may cost you money but could save you more down the road. After you sign the contract you are legally bound to what is in the contract.

Once the contract is signed by both parties get copies and store in a safe place. The builder now can begin work on your project and he too will be bound to the contract during the project time-line. During the course of the building you may find an item you would like to to be updated or delete that was not in the contract. ie. Fixing rotten wood that was not seen or adding ceramic tile. These item can be added through change orders. The change order includes the original contract but amends items to the original contract. These items add or subtract costs out of the original contract and again is part of the legal binding agreement for both parties.


State Contact Numbers:
Builders Division (517) 241-9254
Enforcement Division (517) 241-9202
Construction Lien (517) 241-9241

State Web Site:

http://www.michigan.gov/builders

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