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| Licenses
& Requirements | | A Residential Builder may build a new home from the ground up or may do any kind of repairs regulated
under Article 24 of the Occupational Code. The builder may contract for the whole job, but will have to
subcontract for plumbing, electrical, and mechanical (heating, ventilation, air conditioning) work to licensed plumbing, electrical
and mechanical contractors. A Maintenance & Alteration (M&A) Contractor
is licensed to perform only specific trades and services and may accept contracts only in the trade(s) or craft(s) for which
he or she is licensed. The contractor's wall license and pocket card identifies the trades for which the
M&A Contractor is licensed. The pocket card contains a letter code that represents the trade or trades
in which that contractor is licensed. The M&A trades and their equivalent letter codes are:
Carpentry (A); Concrete (B); Excavation (D); Insulation Work (G); Masonry (I); Painting & Decorating (J); Siding (K);
Roofing (M); Screen & Storm Sash (N); Gutters (O); Tile & Marble (P); House Wrecking (R); Swimming Pools (S); and
Basement Waterproofing (T). Beginning
June 1, 2008, an applicant for a Residential Builder or Maintenance &
Alteration Contractor license must complete 60 hours of approved prelicensure education prior to taking the examination or
submitting a license application to the Department. All prelicensure education courses must be approved by the Department. A list
of approved prelicensure education courses is available on the Builders website at www.michigan.gov/builders under
the "Spotlight" section. Courses are still being developed; therefore, please continue to visit
the Builders website for updated information. The 60 hours of approved prelicensure courses must include
at least six (6) hours in each subject below: 1) Business Management, Estimating, and Job Costing
(6 hours);
2)
Design and Building Science (6 hours)
3) Contracts, Liability, and
Risk Management (6 hours);
4) Marketing and Sales (6 hours);
5) Project Management and Scheduling (6 hours);
6) The Michigan Residential Code (6 hours);
7) MIOSHA
Construction Safety Standards (6 hours); and
8) The rest of the 18
hours may come from other topics
on the approved course list. After an
applicant has completed the 60 hour prelicensure education requirement, he or she may obtain an Individual Residential Builder
and Maintenance & Alteration Contractor License Application on the Builders website at www.michigan.gov/builders,
under "Forms & Publications". The license application must be completed and submitted with
the application fee, and a completed Residential Builder and Maintenance & Alteration Contractor Prelicensure Education
Reporting Form. A copy of the official certificate(s) of completion given to you by the course provider
must be attached to the prelicensure education reporting form for each course you have completed. The certificate(s)
must document 60 hours of approved prelicensure courses. A course will not be accepted without the certificate(s)
attached. The prelicensure reporting form is also available on the Builders website. Once the Builders Unit
receives an application, it will be reviewed to ensure that the applicant meets all licensing requirements.
The requirements for licensure include: 1) 60 hours of approved prelicensure education courses; 2) be at
least 18 years of age; 3) be financially stable; 4) be of good moral character; 5) submit any required documentation requested
by the Department; and 6) pass the required examination. An applicant must meet all requirements for licensure before receiving approval by the Department
to take the examination that is required to obtain a Residential Builder or Maintenance & Alteration Contractor license.
Once the applicant receives an authorization to test, he or she may contact PSI Services LLC, the exam provider, at 1-800-733-9267,
or go to the website at www.psiexams.com, to register for the examination. After the applicant passes both portions of the examination, a license will be issued as an Individual
Residential Builder or Individual Maintenance & Alteration Contractor. The individual license will
allow an individual to perform work as a sole proprietor, under their personal name or an assumed name from their County Clerk's Office.
The individual license may NOT be used for a corporation, limited liability company or partnership.
If you are conducting business as a corporation, limited liability company, or partnership, you must also apply for a second
license which will be for the company. You may obtain a Corporation, Limited Liability Company, or Partnership
Residential Builder and Maintenance & Alteration Contractor License Application on the Builders website at www.michigan.gov/builders,
under "Forms & Publications" or contact the Builders Unit at (517) 241-9288. SALESPERSON Individuals selling the work of a Residential Builder, or Maintenance & Alteration Contractor,
must be licensed as a Salesperson to that builder or contractor. Applicants must contact PSI Services LLC at (800) 733-9267,
or visit their website at www.psiexams.com, to register for the examination. Once an applicant has passed
the Salesperson examination, PSI will mail a license application to the applicant that has the passing examination information
printed on it. The applicant must then complete the application and submit it to the Builders Unit, along
with the required application fee. Applicants
for the Residential Builder or Maintenance & Alteration Contractor Salesperson license must be at least 18 years of age;
be of good moral character; must be employed by a licensed Residential Builder or Maintenance & Alteration Contractor,
and successfully pass an examination. BRANCH OFFICE A Branch Office is a separate
office location for a licensed Residential Builder or Maintenance & Alteration Contractor. If a builder
or contractor is operating out of more than one location, the second location must be licensed as a Branch Office.
A licensed Residential Builder
or Maintenance & Alteration Contractor may obtain a Branch Office license application on our website at www.michigan.gov/builders,
under Forms & Publications. The application must be completed and submitted to the Department, along
with the application fee. |
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This has been copied in it’s
entirety from an article produced by the Federal Trade Commission and can be found at: www.ftc.gov |
Facts
for Consumers Home Sweet Home ImprovementWhether you’re planning an addition for a growing family
or simply getting new storm windows, finding a competent and reliable remodeling contractor is the first step to a successful
and satisfying home improvement project. Your home may be your most valuable financial asset. That’s why it’s important to be cautious when
you hire someone to work on it. Home improvement and repair and maintenance contractors often advertise in newspapers, the
Yellow Pages, and on the radio and TV. However, don’t consider an ad an indication of the quality of a contractor’s
work. Your best bet is a reality check from those in the know: friends, neighbors, or co-workers who have had improvement
work done. Get written estimates from several firms. Ask for explanations for price variations. Don’t automatically
choose the lowest bidder. Home
Improvement Professionals Depending
on the size and complexity of your project, you may choose to work with a number of different professionals: - · General Contractors manage all aspects of your project, including hiring and supervising subcontractors, getting
building permits, and scheduling inspections. They also work with architects and designers.
- · Speciality Contractors install particular products, such as cabinets and bathroom fixtures.
- · Architects design homes, additions, and major renovations. If your project includes structural changes, you
may want to hire an architect who specializes in home remodeling.
- · Designers
have expertise in specific areas of the home, such as kitchens and baths.
- · Design/Build
Contractors provide one-stop service. They see your project through from start to finish. Some firms have architects on staff;
others use certified designers.
Not all contractors operate within the law. Here are some tip-offs
to potential rip-offs. A less than reputable contractor: - · solicits door-to-door;
- · offers you discounts for finding other customers;
- · just
happens to have materials left over from a previous job;
- · only accepts cash payments;
- · asks you to get the required building permits;
- · dose not list a business number in the local telephone directory;
- · tells
you your job will be a "demonstration;"
- · pressures you for an immediate
decision;
- · offers exceptionally long guarantees;
- · asks you to pay for the entire job up-front;
- · suggests that you borrow
money from a lender the contractor knows. If you’re not careful, you could lose your home through a home improvement
loan scam.
Interview each contractor you’re considering. Here are some questions to ask. - · How long have you been in business? Look for a well-established company and check it out with consumer
protection officials. They can tell you if there are unresolved consumer complaints on file. One caveat: No record of complaints
against a particular contractor dosen’t necessarily mean no previous consumer problems. It may be that problems exist,
but have not yet been reported, or that the contractor is doing business under several different names.
- · Are you licensed and registered with the state? While most states license electrical and plumbing contractors,
only 36 states have some type of licensing and registration statutes affecting contractors, remodelers, and/or specialty contractors.
The licensing can range from simple registration to a detailed qualification process. Also, the licensing requirements in
one locality may be different from the requirements in the rest of the state. Check with your local building department or
consumer protection agency to find out about licensing requirements in your area. If your state has licensing laws, ask to
see the contractor’s license. Make sure it’s current.
- · How
many projects like mine have you completed in the last year? Ask for a list. This will help you determine how familiar
the contractor is with your type of project.
- · Will my project require
a permit? Most states and localities require permits for building projects, even for simple jobs like decks. A competent
contractor will get all the necessary permits before starting work on your project. Be suspicious if the contractor asks you
to get the permit(s). It could mean that the contractor is not licensed or registered, as required by your state or locality.
- · May I have a list of references? The contractor should be able to give you the names,
addresses, and phone numbers of at least three clients who have projects similar to yours. Ask each how long ago the project
was completed and if you can see it. Also, tell the contractor that you’d like to visit jobs in progress.
- · Will you be using subcontractors on this project? If yes, ask to meet them, and make
sure they have current insurance coverage and licenses, if required. Also ask them if they were paid on time by this contractor.
A "mechanic’s lien" could be placed on your home if your contractor fails to pay the subcontractors and suppliers
on your project. That means the subcontractors and suppliers could go to court to force you to sell your home to satisfy their
unpaid bills from your project. Protect yourself by asking the contractor, and every subcontractor and supplier, for a lien
release or lien waiver.
- ·
What types of insurance do you carry? Contractors
should have personal liability, worker’s compensation, and property damage coverage. Ask for copies of insurance certificates,
and make sure they’re current. Avoid doing business with contractors who don’t carry the appropriate insurance.
Otherwise, you’ll be held liable for any injuries and damages that occur during the project.
Talk with
some of the remodeler’s former customers. They can help you decide if a particular contractor is right for you. You
may want to ask: - · Can I visit your home to see the completed job?
- · Were you satisfied with the project? Was it completed on time?
- · Did the contractor keep you informed about the status of the project, and any problems along the way?
- · Were there unexpected costs? If so, what were they?
- · Did workers show up on time? Did they clean up after finishing the job?
- · Would you recommend the contractor?
- · Would you use the contractor
again?
- Understanding Your Payment Options
You have several payment options for
most home improvement and maintenance and repair projects. For example, you can get your own loan or ask the contractor to
arrange financing for larger projects. For smaller projects, you may want to pay by check or credit card. Avoid paying cash.
Whatever option you choose, be sure you have a reasonable payment schedule and a fair interest rate. Here are some additional
tips:
- · Try to limit your down payment. Some state laws limit the amount
of money a contractor can request as a down payment. Contact your state or local consumer agency to find out what the law
is in your area.
- · Try to make payments during the project contingent upon completion
of a defined amount of work. This way, if the work is not proceeding according to schedule, the payments also are delayed.
- · Don’t make the final payment or sign an affidavit of final release until you are satisfied
with the work and know that the subcontractors and suppliers have been paid. Lien laws in your state may allow subcontractors
and/or suppliers to file a mechanic’s lien against your home to satisfy their unpaid bills. Contact your local consumer
agency for an explanation of lien laws where you live.
- · Some state or local laws
limit the amount by which the final bill can exceed the estimate, unless you have approved the increase. Check with your local
consumer agency.
- · If you have a problem with merchandise or services that you charged
to a credit card, and you have made a good faith effort to work out the problem with the seller, you have the right to withhold
from the card issuer payment for the merchandise or services. You can withhold payment up to the amount of credit outstanding
for the purchase, plus any finance or related charges.
- The "Home Improvement" Loan Scam
A contractor calls or knocks on your door and offers to install a new roof or remodel your kitchen at a price that
sounds reasonable. You tell him you’re interested, but can’t afford it. He tells you it’s no problem —
he can arrange financing through a lender he knows. You agree to the project, and the contractor begins work. At some point
after the contractor begins, you are asked to sign a lot of papers. The papers may be blank or the lender may rush you to
sign before you have time to read what you’ve been given to sign. You sign the papers. Later, you realize that the papers
you signed are a home equity loan. The interest rate, points and fees seem very high. To make matters worse, the work on your
home isn’t done right or hasn’t been completed, and the contractor, who may have been paid by the lender, has
little interest in completing the work to your satisfaction.
You can protect yourself from inappropriate lending practices. Here’s how. Don’t: - · Agree to a home equity loan if you don’t have enough money to make the monthly payments.
- · Sign any document you haven’t read or any document that has blank spaces to be filled
in after you sign.
- · Let anyone pressure you into signing any document.
- · Deed your property to anyone. First consult an attorney, a knowledgeable family member, or someone
else you trust.
- · Agree to financing through your contractor without shopping around
and comparing loan terms.
- Getting a Written Contract
Contract requirements vary by state. Even if your state dose not
require a written agreement, ask for one. A contract spells out the who, what, where, when and cost of your project. The agreement
should be clear, concise and complete. Before you sign a contract, make sure it contains: - · The contractor’s name, address, phone, and license number, if required.
- · The payment schedule for the contractor, subcontractors and suppliers.
- · An estimated start and completion date.
- · The contractor’s obligation
to obtain all necessary permits.
- ·
How change orders will be handled. A change order
— common on most remodeling jobs — is a written authorization to the contractor to make a change or addition to
the work described in the original contract. It could affect the project’s cost and schedule. Remodelers often require
payment for change orders before work begins.
- · A detailed list of all materials
including color, model, size, brand name, and product.
- · Warranties covering materials
and workmanship. The names and addresses of the parties honoring the warranties — contractor, distributor or manufacturer
— must be identified. The length of the warranty period and any limitations also should be spelled out.
- · What the contractor will and will not do. For example, is site clean-up and trash hauling included
in the price? Ask for a "broom clause." It makes the contractor responsible for all clean-up work, including spills
and stains.
- · Oral promises also should be added to the written contract.
- · A written statement of your right to cancel the contract within three business days if you signed
it in your home or at a location other than the seller’s permanent place of business. During the sales transaction,
the salesperson (contractor) must give you two copies of a cancellation form (one to keep and one to send back to the company)
and a copy of your contract or receipt. The contract or receipt must be dated, show the name and address of the seller, and
explain your right to cancel.
- Keeping Records
Keep all paperwork related to your
project in one place. This includes copies of the contract, change orders and correspondence with your home improvement professionals.
Keep a log or journal of all phone calls, conversations and activities. You also might want to take photographs as the job
progresses. These records are especially important if you have problems with your project — during or after construction.
Completing the Job: A Checklist
Before you sign off and make the final payment, use this checklist to make sure the job is complete. Check that: - · All work meets the standards spelled out in the contract.
- · You have
written warranties for materials and workmanship.
- · You have proof that all subcontractors
and suppliers have been paid.
- ·
The job site has been cleaned up and cleared of
excess materials, tools and equipment.
- ·
You have inspected and approved the completed work.
- Where to Complain
If you have a problem with your home improvement project, first
try to resolve it with the contractor. Many disputes can be resolved at this level. Follow any phone conversations with a
letter you send by certified mail. Request a return receipt. That’s your proof that the company received your letter.
Keep a copy for your files.
If you can’t get satisfaction, consider contacting the following organizations for further information and help: - · State and local consumer protection offices.
- · Your state or local Builders
Association and/or Remodelors Council.
- ·
Your local Better Business Bureau.
- · Action line and consumer reporters. Check with your local newspaper, TV, and radio stations
for contacts.
- · Local dispute resolution programs.
•
Federal Trade Commission: www.ftc.gov • National
Association of Home Builders Remodelors™ Council: www.nahb.com - To order a free copy
of How to Find a Professional Remodeler, send a self-addressed stamped envelope to:
- NAHB Remodelors Council
Dept. FT
1201 15th Street, NW
Washington, DC 20005
- 1010 Vermont
Avenue, NW
Suite 514
Washington, DC 20005
E-mail: nacaa@erols.com
- The FTC works for
the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information
to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity
theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
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