Need a Home Services / Junk Removal Contract in Michigan? AroundWire Can Help

In Michigan, contracts for home services such as junk removal typically emphasize clear scope of work definitions, pricing structures (often fixed or based on volume/weight), and scheduling terms. State law requires that any contractor performing work valued at $600 or more in a year for a homeowner must be licensed as a Residential Builder or Maintenance & Alteration Contractor; while junk removal may not always trigger this threshold, businesses should confirm whether their services fall under regulated activity. Contracts must comply with the Michigan Consumer Protection Act, which mandates clear, written agreements and prohibits deceptive practices. Insurance is a critical requirement—general liability coverage is standard, and workers’ compensation is required if the contractor has employees. Contractors are often expected to provide proof of insurance upon request. Indemnification clauses and limitations of liability are common risk mitigation tools. Payment terms usually require a deposit (not exceeding 1/3 of the total) with the balance due upon completion, in accordance with Michigan’s prohibition against excessive upfront payments. Dispute resolution is typically addressed via mediation or small claims court, with a preference for resolving matters locally before escalation. Contracts should also address compliance with local waste disposal regulations, as improper handling or disposal can result in penalties. Overall, transparency, proper licensing, and clear allocation of risk are central to well-structured junk removal contracts in Michigan.