Hiring the wrong contractor in Detroit can cost you tens of thousands of dollars and work that fails inspection or has to be torn out and redone. Every year, Metro Detroit homeowners get burned by unlicensed operators who disappear mid project. Here is exactly how to protect yourself before you sign anything.
Verify the License and Insurance First
In Michigan, protecting yourself starts with paperwork, not price. Here is what to check before you let anyone start work in your home.
Check LARA Before Anything Else
Anyone performing residential construction in Michigan has to hold a license through the Michigan Department of Licensing and Regulatory Affairs, or LARA. You can verify any contractor's license in about a minute at michigan.gov/lara by searching Contractor License. Check the license type, Residential Builder versus Maintenance and Alteration Contractor, whether the license is active or lapsed, the expiration date, and whether there are any disciplinary actions on record. Arise Above Construction's Builder License is #2101179929, active. We give homeowners that number up front. Verify it, that is what it is there for.
Confirm Insurance with a Certificate
A licensed contractor is not automatically insured, so ask for proof of two separate coverages. General liability insurance covers property damage during the project, a subcontractor dropping something through your floor or a water leak during demo, and it pays for that, not your homeowner's policy. Standard coverage is $1 million per occurrence. Workers' compensation is the one most homeowners overlook. If an uninsured worker gets hurt on your property, you can be held liable for it. Ask for a current certificate of workers' comp insurance before anyone sets foot in your home, and ask to be listed as certificate holder so you are notified if the policy ever lapses.
Read Reviews Honestly and Get Three Estimates
Once the paperwork checks out, the next filter is reputation and price, and both take a more careful read than they first appear to.
Look Past the Star Rating
Google reviews are useful, but read the actual text and look for patterns rather than the number at the top. A contractor with 4.8 stars and 200 reviews that consistently mention being on time, communicative, and fair on pricing tells you something real. A contractor with 4.2 stars and eight reviews tells you almost nothing. Also look at how a contractor responds to negative reviews, whether they answer professionally and offer to make it right. That says more than the five star reviews do. Arise Above Construction holds a 5.0 star Google rating across 57 verified reviews, and that comes from a business built around communication and follow through, not luck.
Compare Estimates Properly
Getting three written estimates shows you what is normal for your market, but do not just compare the bottom line. Check whether all three contractors are bidding the same scope of work, whether materials and allowances are specified rather than a vague line item like tile, and how permit fees and permit pulling are handled. Any contractor asking for 50 percent or more upfront is a red flag worth pausing on.
Red Flags That Should Send You Walking
In 20 years in Detroit construction, we have seen most of the scams in the book. Walk away from a contractor who will not put an estimate in writing, who asks for a deposit well beyond the standard 25 to 30 percent, or who cannot produce a license number at all. Be skeptical of a bid that comes in far below everyone else's, of cash only arrangements or a refusal to sign a written contract, and of anyone who claims they can start tomorrow. Also watch for a contractor with no fixed address or only a cell number, since transient operators are one of the most common sources of contractor fraud in Metro Detroit.
What Your Contract Should Include
Before you sign anything, your contract should spell out the contractor's full legal name and address, their Michigan license number, a detailed scope of work rather than a phrase like kitchen remodel, material specifications and allowances, a start date and a substantial completion date, a payment schedule tied to project milestones, a change order process that puts all changes in writing, warranty terms for the workmanship, and a lien waiver provision. If more than one of these is missing, ask why before you sign.