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

In Michigan, home services and remodeling contracts are governed by both state statutes and local ordinances, with the Michigan Occupational Code (Act 299 of 1980) being particularly relevant. Contractors performing work over $600 must be licensed as residential builders or maintenance and alteration contractors. Contracts must clearly state the scope of work, materials, itemized pricing, project timeline, and payment schedule. Michigan law requires a written agreement for projects exceeding $600, and prohibits down payments greater than 1/3 of the total project cost. Contractors are generally required to carry liability insurance and, where applicable, workers’ compensation coverage. Permitting and code compliance are critical; contracts should specify responsibility for obtaining permits and adhering to local building codes. Risk factors include liability for property damage, delays, and non-conformance to code, so contracts typically include indemnification and warranty clauses. Dispute resolution often favors mediation or arbitration before litigation, as reflected in standard contract language. Michigan’s Home Solicitation Sales Act also provides homeowners with a three-day right to cancel certain contracts signed at their residence. Local jurisdictions may impose additional licensing or bonding requirements, so verifying municipal rules is essential. Payment terms commonly include progress payments linked to project milestones, with final payment contingent on satisfactory completion and inspection.