Co-Branding Consumer Guide-Michigan Revised.pdf
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- Solicitation number
- RFQ 171 270000000040 1
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- Michigan
About this file
This is a consumer education guide published by the National Association of State Contractors Licensing Agencies (NASCLA) in collaboration with the State of Michigan, specifically the Department of Licensing and Regulatory Affairs (LARA) Bureau of Construction Code. The guide is designed to educate homeowners on the process of hiring contractors and managing home improvement projects, whether for new construction or remodeling. The document provides comprehensive guidance across eleven key topic areas: inspiration and planning, choosing contractors, contracts and insurance, managing projects, completing projects, identifying common pitfalls, protecting against mechanic's liens, handling complaints, code enforcement and inspections, final tips, and a glossary of relevant terms. No specific project quantities, response dates, due dates, site visits, bidder meetings, award dates, or contract terms are identified in this consumer guidance document, as it is an informational resource rather than a competitive solicitation.
The document contains no pricing information, set-asides, incumbent contractor information, or funding sources, as it serves as a co-branded educational resource for homeowners rather than a procurement opportunity. The guide emphasizes best practices for homeowners, including obtaining multiple written estimates, verifying contractor licenses with state licensing agencies, requiring detailed written contracts with specified payment schedules tied to project milestones, confirming insurance coverage, obtaining lien releases before final payment, and conducting final walkthroughs. Contact information is provided for both NASCLA (Phoenix, Arizona) and the State of Michigan's Bureau of Construction Code in Lansing, which homeowners can reference for license verification and dispute resolution assistance.
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| File | Type | Posted |
|---|---|---|
| NASCLA Consumer Guide.docx | DOCX document | |
| State of Michigan Print Mail Management Terms Conditions (1).docx | DOCX document | |
| Standard Contract Terms - Short Form.pdf |
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NASCLA
CONSUMER GUIDE TO
HOME
IMPROVEMENT
PROJECTS
NASCLA.ORG
NASCLA
Consumer Guide to Home
Improvement Projects
NASCLA Consumer Guide to Home Improvement Projects
Published by the National Association of State Contractors Licensing Agencies (NASCLA)
All rights reserved. No part of this publication may be transmitted or reproduced in any media or form without the written consent of the author.
© 2025 NASCLA
More info at nascla.org
NASCLA CONSUMER GUIDE TO HOME IMPROVEMENT PROJECTS
Introduction 01
Contracts and Insurance 04
Inspiration and Planning 02
Managing the Project 05
Choosing Your Contractor 03
Completing the Project 06
Table of Contents
Code Enforcement and Inspections 10
Beware of Common Pitfalls 07
Final Tips 11
Handling Complaints 09
Glossary 12-13
Protect Yourself from Mechanic’s Liens 08
While not a definitive solution to every issue, this guide provides a comprehensive understanding of what to expect and how to prepare for your home improvement projects.
This publication is designed to guide homeowners through the process of hiring a contractor and managing construction projects, whether for new construction or remodeling. It aims to simplify information to help you make informed decisions, avoid potential pitfalls, and ensure your project runs smoothly.
NASCLA CONSUMER GUIDE TO HOME IMPROVEMENT PROJECTS
Introduction
Gather inspiration online, in magazines, at retail stores, and from friends or neighbors.
Define your project scope and budget, allocating at least 10% for large projects and 5% for small projects to cover unexpected costs.
Determine how you will finance the project.
Establish a realistic timeline for completion.
Research available state and federal energy-saving programs for potential cost savings.
Protect your project: Inform yourself about state and local regulations, permit requirements, and zoning laws.
Inspiration and Planning
Choosing Your Contractor
Determine whether you need a General Contractor or Specialty Trades Contractor.
Solicit at least three written estimates.
Check references and contractor history.
Review financial stability, credit ratings, and online presence.
Verify contractor licenses or registrations with state licensing agencies.
Confirm the contractor’s experience with similar projects.
Be cautious of deals that seem too good to be true and predatory financing.
Avoid high-pressure sales tactics and unlicensed or non-registered contractors.
Contracts and Insurance
Always require a detailed, written contract.
Include all project specifics: scope, location, materials, brands, colors, and methods.
Ensure payment schedules are linked to project milestones with retention held until completion.
Require change orders in writing.
Confirm the contractor’s insurance coverage, including liability and workers’ compensation.
Make sure the contractor is responsible for obtaining all necessary permits.
Understand your right to cancel and any associated penalties.
Before final payment, obtain lien releases from all subcontractors and suppliers.
Managing the Project
Keep a job file with contracts, permits, warranties, and all communication records.
Regularly inspect the work to ensure it aligns with contract terms.
Address any concerns immediately and document discussions in writing.
Communicate clearly with your contractor to keep the project on track.
Completing the Project
Conduct a final walkthrough to create a punch list of necessary corrections.
Collect warranties, operating instructions, and lien releases before making the final payment.
Ensure the contractor follows through on cleanup and debris removal.
Contractors who ask for full payment upfront, require unusually large down payments, or make demands for cash.
Unlicensed or unregistered contractors.
To verify a license, visit the state regulatory agency website to confirm the status of an active license/registration.
Contractors making high pressure sales, offering “one-day-only” pricing or unsolicited door-to-door offers.
Failure to check for complaints at the state licensing board.
Beware of Common Pitfalls
Low bids that may result in subpar work or hidden fees.
Contractors with no insurance or contracts.
Protect Yourself from Mechanic’s Liens
Obtain a list of subcontractors and suppliers before work begins.
Pay with joint checks when necessary to ensure all parties are compensated.
Retain lien releases before making final payments.
Handling Complaints
Try to resolve issues directly with your contractor.
Use mediation or arbitration as an alternative to court.
Contact your state licensing agency or attorney general’s consumer division for dispute resolution assistance.
Code Enforcement and Inspections
Building codes protect safety and durability.
The contractor should handle permits and required inspections.
Inspections help ensure compliance with safety and energy efficiency standards to prevent costly issues.
Final Tips When expanding or putting on a home addition, make sure you measure up!
Consider conducting a property and land survey by contacting your local zoning inspector.
Monitor hazardous materials, indoor air quality, and moisture levels during construction.
Maintain energy-efficient or eco-friendly options to reduce long-term costs.
Check for additional local requirements, especially in environmentally sensitive areas.
Consider performance bonds for large projects to guarantee completion.
Bond: A financial guarantee that protects project owners, subcontractors, and suppliers from financial loss due to a contractor's failure to fulfill their obligations.
Glossary
Contract: A legal agreement outlining project terms.
Contractor: A person or business which provides goods or services to another entity under terms specified in a contract.
Guarantee: Assurance that the completed work will be performed as intended and meet certain standards.
Building Code: Laws set forth by local government that dictate the design, materials used, and/or types of improvements that will be allowed. New construction or improvements must meet building code; adherence to requirements is determined by building inspectors.
Inspection: A qualified individual assesses a construction project to ensure it aligns with approved plans, building codes, and other regulations.
Glossary
Mechanic’s Lien: A legal claim against a property that secures payment for unpaid labor or materials used in the construction.
Permit: An official document issued by a government agency that authorizes the construction, alteration, or repair of a building or structure.
Warranty: A written guarantee to repair or replace defects in the construction work.
Subcontractor: An individual or company hired by a contractor to perform a specific task as a part of the overall project.
Registration: Not all states require testing for a contractor’s license; some states only require contractors to register with their state board and carry insurance coverage.
License: An official authorization from a government entity that allows an individual or business to legally perform construction work.
23309 North 17th Drive Building 1, Suite 110 Phoenix, Arizona 85027 info@nascla.org
(623) 587-9354 nascla.org
NASCLA CONSUMER GUIDE TO HOME IMPROVEMENT PROJECTS
611 West Ottawa Street Lansing, Michigan 48909
(517) 241-9316 michigan.gov/BCC
LARA-BCC-Licensing @Michigan.gov
| NASCLA |
| CONSUMER GUIDE TO |
| HOME IMPROVEMENT PROJECTS |
| NASCLA |
| Table of Contents |
| Introduction |
| Inspiration and Planning |
| Choosing Your Contractor |
| Contracts and Insurance |
| Managing the Project |
| Completing the Project |
| Beware of Common Pitfalls |
| Protect Yourself from Mechanic’s Liens |
| Handling Complaints |
| Code Enforcement and Inspections |
| Final Tips |
| Glossary |
| 12-13 |
| Introduction |
| This publication is designed to guide homeowners through the process of hiring a contractor and managing construction projects, whether for new construction or remodeling. It aims to simplify information to help you make informed decisions, avoid potential pitfalls, and ensure your project runs smoothly. |
| While not a definitive solution to every issue, this guide provides a comprehensive understanding of what to expect and how to prepare for your home improvement projects. |
| PAGE 1 |
| Inspiration and Planning |
| Gather inspiration online, in magazines, at retail stores, and from friends or neighbors. |
| Define your project scope and budget, allocating at least 10% for large projects and 5% for small projects to cover unexpected costs. |
| Determine how you will finance the project. |
| Establish a realistic timeline for completion. |
| Research available state and federal energy-saving programs for potential cost savings. |
| Protect your project: Inform yourself about state and local regulations, permit requirements, and zoning laws. |
| PAGE 2 |
| Choosing Your Contractor |
| Determine whether you need a General Contractor or Specialty Trades Contractor. |
| Solicit at least three written estimates. |
| Verify contractor licenses or registrations with state licensing agencies. |
| Check references and contractor history. |
| Review financial stability, credit ratings, and online presence. |
| Confirm the contractor’s experience with similar projects. |
| Be cautious of deals that seem too good to be true and predatory financing. |
| Avoid high-pressure sales tactics and unlicensed or non-registered contractors. |
| PAGE 3 |
| Contracts and Insurance |
| Always require a detailed, written contract. |
| Include all project specifics: scope, location, materials, brands, colors, and methods. |
| Ensure payment schedules are linked to project milestones with retention held until completion. |
| Require change orders in writing. |
| Confirm the contractor’s insurance coverage, including liability and workers’ compensation. |
| Make sure the contractor is responsible for obtaining all necessary permits. |
| Understand your right to cancel and any associated penalties. |
| Before final payment, obtain lien releases from all subcontractors and suppliers. |
| PAGE 4 |
| Managing the Project |
| Keep a job file with contracts, permits, warranties, and all communication records. |
| Regularly inspect the work to ensure it aligns with contract terms. |
| Address any concerns immediately and document discussions in writing. |
| Communicate clearly with your contractor to keep the project on track. |
| PAGE 5 |
| Completing the Project |
| Conduct a final walkthrough to create a punch list of necessary corrections. |
| Collect warranties, operating instructions, and lien releases before making the final payment. |
| Ensure the contractor follows through on cleanup and debris removal. |
| PAGE 6 |
| Beware of Common Pitfalls |
| Contractors who ask for full payment upfront, require unusually large down payments, or make demands for cash. |
| Unlicensed or unregistered contractors. |
| To verify a license, visit the state regulatory agency website to confirm the status of an active license/registration. |
| Contractors with no insurance or contracts. |
| Low bids that may result in subpar work or hidden fees. |
| Contractors making high pressure sales, offering “one-day-only” pricing or unsolicited door-to-door offers. |
| Failure to check for complaints at the state licensing board. |
| PAGE 7 |
| Protect Yourself from Mechanic’s Liens |
| Obtain a list of subcontractors and suppliers before work begins. |
| Pay with joint checks when necessary to ensure all parties are compensated. |
| Retain lien releases before making final payments. |
| PAGE 8 |
| Handling |
| Complaints |
| Try to resolve issues directly with your contractor. |
| Use mediation or arbitration as an alternative to court. |
| Contact your state licensing agency or attorney general’s consumer division for dispute resolution assistance. |
| PAGE 9 |
| Code Enforcement |
| and Inspections |
| Building codes protect safety and durability. |
| The contractor should handle permits and required inspections. |
| Inspections help ensure compliance with safety and energy efficiency standards to prevent costly issues. |
| PAGE 10 |
| Final Tips |
| When expanding or putting on a home addition, make sure you measure up! |
| Consider conducting a property and land survey by contacting your local zoning inspector. |
| Monitor hazardous materials, indoor air quality, and moisture levels during construction. |
| Maintain energy-efficient or eco-friendly options to reduce long-term costs. |
| Check for additional |
| local requirements, especially in |
| environmentally sensitive areas. |
| Consider performance bonds for large projects to guarantee completion. |
| PAGE 11 |
| Glossary |
| Bond: A financial guarantee that protects project owners, subcontractors, and suppliers from financial loss due to a contractor's failure to fulfill their obligations. |
| Building Code: Laws set forth by local government that dictate the design, materials used, and/or types of improvements that will be allowed. New construction or improvements must meet building code; adherence to requirements is determined by building inspectors. |
| Contract: A legal agreement outlining project terms. |
| Contractor: A person or business which provides goods or services to another entity under terms specified in a contract. |
| Guarantee: Assurance that the completed work will be performed as intended and meet certain standards. |
| Inspection: A qualified individual assesses a construction project to ensure it aligns with approved plans, building codes, and other regulations. |
| PAGE 12 |
| Glossary |
| License: An official authorization from a government entity that allows an individual or business to legally perform construction work. |
| Mechanic’s Lien: A legal claim against a property that secures payment for unpaid labor or materials used in the construction. |
| Permit: An official document issued by a government agency that authorizes the construction, alteration, or repair of a building or structure. |
| Registration: Not all states require testing for a contractor’s license; some states only require contractors to register with their state board and carry insurance coverage. |
| Subcontractor: An individual or company hired by a contractor to perform a specific task as a part of the overall project. |
| Warranty: A written guarantee to repair or replace defects in the construction work. |
| PAGE 13 |
| 23309 North 17th Drive |
| Building 1, Suite 110 |
| Phoenix, Arizona 85027 |
| 611 West Ottawa Street |
| Lansing, Michigan 48909 |
| (517) 241-9316 |
| (623) 587-9354 |
| LARA-BCC-Licensing @Michigan.gov |
| info@nascla.org |
| michigan.gov/BCC |
| nascla.org |
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