Under State law, all contractors doing work valued at $600, and above, on homes in Michigan, must be financially authorized (no history of bankruptcy) and licensed. This includes new construction of residential structures, and repair, alteration, addition, subtraction, or improvement of residential structures. Contractors can either be licensed as "Residential Builders", or "Maintenance & Alterations Contractors".
Letter from Michigan Governor, Rick Snyder, appointing Jeff Donius, owner of Premier Veneers, to LARA Board.
This regulation is administered, and enforced, by Michigan Department of Licensing and Regulatory Affairs (LARA), with assistance of a 9-member board, called "Residential Builders' and Maintenance & Alteration Contractors' Board", made up of four builders, two contractors, and three members of the general public (non-attorneys).
Founder, owner, and president of Premier Veneers, Jeff Donius, was appointed to this board, as a representative of Maintenance & Alterations Contractors, in recognition of expertise in construction, and in particular, expertise in concrete, and painting & decorating, trades. Mr. Donius has been licensed as a Maintenance & Alterations Contractor in Michigan, since December 2000.
The appointment was announced by Michigan Governor, Rick Snyder, this past Thursday, May 10th, 2018, in this Board Appointment Press Release . The listing of the entire 9-member board can be found on LARA's website: Residential Builders' and Maintenance & Alteration Contractors' Board.
In order to receive LARA Residential Builder or Maintenance & Alterations Contractor license Michigan, contractors must pass written exam, and take continuing education every three years.
The main purpose of Michigan's contractor licensing regulations is to protect the public from inadequate building practices. The way the law works is that if a homeowner has a dispute, or other difficulties, with a licensed contractor they have hired, they can file a complaint with LARA. Subsequently, LARA conducts an investigation, holds a hearing, if necessary, and if appropriate, sanctions the guilty party.
Certificate of Appointment from State of Michigan, and Governor, Rick Snyder, authorizing appointment mentioned above.
If the contractor is not licensed, the homeowner must file a complaint against the contractor with the Michigan Attorney General’s Office of Consumer Protection (Stanley Wilson). In this instance, the Attorney General’s Office will investigate, and the penalties will be much more severe. The first offense for unlicensed contractor activity under the Michigan Occupational Administrative Code (MCI) is a fine between $5,000 and $25,000, and up to one year in jail. The Attorney General may also impose a cease & desist order.
In either case, the homeowner has to file suit in district court, typically small claims - if the amount is $6,000 or less - in order to recover damages. The homeowner would, as a rule, win a default judgment from the court, if the contractor was unlicensed. However, there would still be the matter of enforcing the judgment, which could be difficult against an unlicensed contractor.
The moral of the story is ALWAYS HIRED A LICENSED CONTRACTOR IN THE STATE OF MICHIGAN FOR RESIDENTIAL WORK. This is not always easy, since a good majority of residential contractors (71%), in the State of Michigan, are not licensed, and because a lot of commercial contractors (53%), who don't require licensing, also do residential work on the side.
Wallet-size contractor's license provided by State of Michigan must be shown by contractor to homeowner, prior to entering their home, or discussing a residential construction project.
But contractors doing residential work in Michigan are required under State regulations to show their wallet-size licenses before entering a home or discussing work with a potential customer. If they don't show it, don't hesitate to ask for it. Unfortunately, Premier Veneers routinely encounters, and receives inquiries from, homeowners who have lost money to unlicensed contractors, and need a project redone.
In 2016, Premier Veneers helped owner of a poorly done, acid-stained concrete floor in West Bloomfield, MI, by an unscrupulous, unlicensed contractor, recoup more than $4,000.
Often, Premier Veneers assists not only in correcting such work, but in advising homeowners on common sense actions that can be taken to recover money. We helped one homeowner in West Bloomfield 2 years ago recover $4,000-plus, for shoddy work done on a decorative concrete flooring project; and another, in Illinois, over 10 years ago, recover $13,000 in an arbitration hearing, for a failed decorative concrete pool deck installation.
Keep in mind, licensing is only a baseline, or minimum requirement, for residential construction work in Michigan. Good contractors also typically have a number of certifications in construction trades they practice, in addition to their license. At Premier Veneers, we are licensed and certified in every service we offer, and we are insured for commercial general liability up to $3 million.
Furthermore, additional information about contractor licensing in the State of Michigan can be found on LARA's home page website: Helpful Information For Homeowners.