Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Michigan, home improvement contractors are regulated under various state statutes and regulations. The Michigan Home Improvement Finance Act and the Michigan Consumer Protection Act are two key laws that govern home improvement contracts and contractors. These laws require a written contract for any home improvement project costing more than $600. The contract must include details such as the scope of work, materials to be used, payment schedule, timeline for completion, and insurance information. Contractors must also be licensed if they perform work that requires a license, such as plumbing, electrical, or mechanical work. Michigan law also provides for the use of construction liens, which are legal claims against a property by contractors or suppliers who have not been paid for work performed or materials provided. To enforce a lien, specific notice requirements and timelines must be followed, as outlined in the Michigan Construction Lien Act. It is important for homeowners to ensure that contractors are properly licensed and to understand the terms of their home improvement contracts to protect their rights and property.