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HOW TO CHOOSE A BUILDER OR REMODELER!

Building a new home or remodeling your present home is a major investment. As you begin planning to build or improve your home there are important steps you should take to protect from loss or disappointment.

CHOOSING A BUILDER
Get the names of contractors from:

• Friends or neighbors who have had satisfactory work done.
• People at local home improvement centers, builders shows or open houses.
• Local yellow pages list licensed builders who do business in your community.
• Local home builders association. If the association is affiliated with the National Association of Home Builders, all members must be licensed by the state in order to be included on their roster.
• You should be aware that all contractors offering to do work which totals $600.00 or more for labor and materials must have a state license.
• A Residential Builder's license allows a contractor to build a complete structure and do maintenance or alteration (remodeling) work. A maintenance and Alteration license indicates that the holder has met requirements for one or more of the following trades; basement waterproofing, carpentry, concrete excavation, house wrecking, insulation, masonry, painting and decorating, roofing, screen and storm sash, gutters, siding, swimming pools or tile and marble. The trades in which a contractor is qualified to practice are listed on the license.

LOOK FOR THE LICENSE.
The state license must be displayed in place of business and all contractors and their salespeople must carry a pocket license card which you should ask to see. If they connot show you a license, call the Department of Consumer & Industry Construction Bureau at 517-241-9288

Working with an unlicensed builder, or contractor is done at your own risk!

GET REFERENCES

• Get references from the contractors you are considering.
• Ask for name and address of previous customers and check with those people who have had work done and ask if it was satisfactory.
• Be sure the contractor has a permanent business location and telephone number.
• Check the contractors credit reputation with local banks or suppliers.

GET ESTIMATES
Get estimates from different contractors to compare prices. Remember the cost of materials and quality will affect the bid. A low bid based on inferior materials may not be any bargain, so consider more than the price alone. Be sure the estimate specifies the total price, the terms of payment, the kind of materials to be used and the expected time it will take to complete the job.
Be aware of special prices because of left over materials, or discounts if you agree to get other customers. They are often gimmicks to get you to buy.

GET IT IN WRITING
When you have selected a contractor, get all agreement in writing. A written agreement will make sure there are no misunderstandings
Make sure that you read all documents carefully. While it is not required, it is often a good idea to have an attorney review the contract and any other forms before you sign them, especially if a large sum of money is involved. Don't be afraid to ask questions about anything you do not understand. Ask for any changes or modifications before you sign the contract.

GET A CONTRACT
The written contract should include:

• The Company name, address, phone number and the full name and license number of the builder/contractor and the salesperson.
• Detailed job specifications which include a description (brand names, colors, grades, styles and model numbers) of materials, a list of all costs spelled out clearly and any architects or engineers drawings which are required.
• Start and completion dates. Those should allow for any reasonable delays but should include a clause allowing you to withhold payment if work slows down for no apparent reason.
• A statement that all required building permits and variances will be obtained by the contractor before work in begun. The buiding permits is for your protection. An Inspector will make sure the finsished job meets all codes and safety standards, and makes the contractor responsible for corrections.
• A guarantee that the contractor carry liability insurance and has Workers Compensation coverage, in case of accidents on the job.
• A statement of warranty on the work. Be sure it tells if labor and materials are guarnanteed, and to how long. A statement that cleanup will be done by the contractor should be allowed.
• A provision for credits if there are large amounts of materials left over. On the other hand, you should be prepared to pay for extra materials if the project takes more than anticipated. Your builder should provide you with a description of these extra costs in writing, so that there are no surprises on your final bill.
• The terms of payment should be clearly stated in the contract.
• A right to cancel clause. If you are solicited and signed the contract in your home, you have three days to cancel the contract if you change your mind. You must send the contractor a registered letter stating you wish to cancel.
• If everything in the agreement is satisfactory both the contractor and the homeowner must sign and date the contract. Any later changes or revisions must be dated and intitialed by both parties.
• Be sure that the contractor gives you a copy of the contract with any changes noted.

PAYING THE CONTRACTOR
Never pay for the entire job in advance.
Make a deposit when work begins to cover materials and startup cost. Pay by check to the company name and alsways get a receipt.
Make scheduled payments as work progresses. REFER TO A CONSUMERS GUIDE TO THE CONSTRUCTION LIEN RECOVERY FUND FOR MORE INFORMATION.

RESOLVING PROBLEMS
If you have problems you should first try to resolve them with the contractor before making the final payment. You may contact the local building inspector for assistance in resolving workmanship and code violations.

Small Claims Court is another alternative if the dispute involved a sum with their jurisdiction.

If your efforts to resolve the matter fail, or if you feel you have been the victim of fraud or deceit you should contact the Department of Consumer & Industry Services, Commercial Enforcement Division to file a complaint.

Reprinted information provided by State of Michigan Department of Consumer & Industry Services!
P.O. Box 30245, Lansing, MI 48909

RESIDENTIAL BUILDERS AND MAINTENANCE & ALTERATION CONTRACTORS BOARD LICENSING VERIFICATION UNIT / (900) 555-837 / LICENSING OFFICE / (517) 241-9241 COMMERCIAL ENFORCEMENT / (517) 241-9202 CONSTRUCTION LEIN RECOVERY FUND / (517) 241-9241
This publication is issued for your information under the authority's PA 209 of 1980 as amended!

USEFUL LINKS

Better Business Bureau of West Michigan - This bureau represents businesses in Muskegon and Grand Haven, Michigan.

Better Homes and Gardens - Companion web site to the popular magazine. Find articles on decorating, design, remodeling and room makeovers.

BuilderBooks.com - Save over 30% on most books for the construction industry at BuilderBooks.com

Builder Online - Builder Magazine is the leading source for professional homebuilders. If you want to get a behind-the-scenes-view of the building industry, this is the place to start.

ePlans - Billed as the "Houseplan Superstore," ePlans.com provides a friendly search engine to find a wide variety of home plans from Contemporary to Victorian.

Greenhomebuilding.com - This site is focused on environmentally-friendly homebuilding products (e.g. heating/cooling, paints, etc.) and techniques. Site links to dozens of manufacturers of green products.

Michigan Association of Home Builders - MAHB is a professional trade association, chartered in 1948 with the National Association of Home Builders. This is our state association based in Lansing, Michigan.

National Association of Home Builders - This builder trade association has recently launched a new web site that is full of useful resources and information for consumers on building a new home.

This Old House Online - At the home to the popular PBS TV series you'll learn how Norm, Steve and their talented crews renovate classic American homes from every era. Catch the innovative 24-hour web cam which shows you live views of homes in progress.

Michigan Construction Industry Mutual - Michigan Construction Industry Mutual (MCIM) is a provider of workers’ compensation insurance for businesses in the construction and manufacturing industries.

Muskegon Area Chamber of Commerce - Get more exposure when you advertise in the Living on the Lakeshore Business Directory.