How to Find a Licensed Contractor in Detroit (And Avoid the Ones You Shouldn't)

Hiring the wrong contractor in Detroit can cost you tens of thousands of dollars, months of your life, and — worst of all — leave you with work that fails inspection or needs to be redone. Every year, Metro Detroit homeowners fall for unlicensed operators who disappear mid-project or produce work that doesn't meet code. Here's exactly how to protect yourself.

Step 1: Verify the License Before Anything Else

In Michigan, anyone performing residential construction must hold a license through the Michigan Department of Licensing and Regulatory Affairs (LARA). You can verify any contractor's license in about 60 seconds at michigan.gov/lara → search "Contractor License."

Step 2: Confirm Insurance — Get a Certificate

A licensed contractor isn't automatically insured. You need to verify two separate types of coverage:

General Liability Insurance

This covers property damage during the project. If a subcontractor drops something through your floor or water damage happens during demo, general liability pays for it — not your homeowner's insurance. Minimum $1 million per occurrence is standard.

Workers' Compensation Insurance

This is the one most homeowners miss. If an uninsured worker gets hurt on your property, you can be held liable. Demand a current certificate of workers' comp insurance before anyone sets foot in your home. Ask them to list you as certificate holder so you get notified if the policy lapses.

Step 3: Read the Reviews — But Read Them Critically

Google reviews are useful, but look beyond the star rating. Read the actual reviews and look for patterns. A contractor with 4.8 stars and 200 reviews who consistently mentions "on time, communicative, and fair pricing" tells you a lot. A contractor with 4.2 stars and 8 reviews tells you almost nothing.

Look for responses from the contractor. How do they handle negative feedback? Do they respond professionally and offer to make it right? That tells you more than the 5-star reviews.

Step 4: Get Three Written Estimates — and Compare Them Properly

The three-estimate rule exists for a reason: it helps you understand what's normal for your market. But comparing estimates isn't as simple as looking at the bottom line. Compare:

• Scope: Are all three contractors bidding the same work? If one is $8,000 cheaper, look at what they left out.
• Materials: Do the estimates specify materials and allowances, or just say "tile" without specifying grade?
• Timeline: When does work start? What's the realistic completion date?
• Payment terms: Any contractor asking for 50%+ upfront is a red flag.
• Permit handling: Does the estimate include permit fees? Who is responsible for pulling permits?

Red Flags to Watch For

After 25+ years in Detroit construction, we've seen every scam in the book. Here's what should send you walking:

• No written estimate — Professional contractors always provide written estimates. "I'll just tell you the number" is not acceptable.
• Large upfront deposits — Standard is 25–30% to start. Asking for 50% or more upfront is a serious red flag.
• Can't provide a license number — This one ends the conversation.
• Unusually low bid — If everyone else is at $25,000 and one contractor bids $12,000, ask why. The answer will tell you everything.
• Cash-only or avoiding a written contract — They're trying to avoid accountability.
• "I can start tomorrow" — Quality contractors are booked. If someone is immediately available for a major project, ask why.
• No fixed address or only a cell number — Transient operators are the most common source of contractor fraud in Detroit.

What to Look for in a Contract

Before signing anything, your contract should include:

1. Full legal name and address of the contractor
2. Michigan license number
3. Detailed scope of work (not just "kitchen remodel")
4. Material specifications and allowances
5. Start date and substantial completion date
6. Payment schedule tied to project milestones
7. Change order process (all changes in writing)
8. Warranty terms for workmanship
9. Lien waiver provision