“Jeff Smith, president of Home-Builders Association of Greater Kalamazoo, said any home improvement project that includes a labor charge of $600 or more requires a license from the state of Michigan. In addition, jobs like plumbing, electrical work and mold abatement require additional licensing.

Homeowners also need to make sure whoever they hire is insured. ‘If the contractor is uninsured, the homeowner becomes liable,’ Smith said.

Avoiding Scams

Tips to make sure you don’t get taken when hiring a home-improvement contractor:

• Ask to see a contractor’s license.
• Ask to see proof of insurance.
• Ask for at least three references, including current phone numbers.
• Be leery of contractors who just show up saying there are in the neighborhood doing other work.
• Contact the Better Business Bureau of Western Michigan and the Michigan Attorney General’s office to see if any complaints have been filed against the contractor.
• Check to see if the contractor belongs to a professional organization like the Home Builders Association of Greater Kalamazoo, which accepts only members who have the prope-r licensing.
• Don’t be pressured into signing a contract “today” in order to get a better price.
• Don’t give more than a 20 percent to 25 percent deposit before the start of the project.
• If the contractor requires payment for materials, write a two party check to the contractor and to the store where the supplies are being purchased.
• When paying for supplies up front, ask for a waiver from the store where they were purchased.
• Don’t make the last payment until the “punch list” is complete a punch list is a list of little things that still need to be done once a job is about 99 percent complete. These could be things like fixing a nick in a wall or replacing a switch plate.
• If you are unsure about the prices quoted, the contract or anything else, ask someone else to review the contract and supply list before hiring the contractor.
• Whenever making a change in the original project, get the change and the price in writing.
• Keep a journal of work done, contacts made with the contractor and payments made.

Before Choosing a Contractor

• Can you communicate openly with the contractor?
• Does he/she take the time to really listen to what you want?
• Look at both recent and past jobs.
• Talk to past customers.
• Check the litigation history.
• Check current workload. Can the contactor really start and finish when he/she says he/she can?

What a Contractor Expects from You

• Communicate your objectives and expectations from the very start.
• Provide the necessary money – pay promptly.
• Provide access to the project.
• Once you have chosen a contractor you trust, allow him/her to lead.
• Be available for meetings.
• Make decisions promptly.
• Accept reasonable standards of performance. Perfection is rare in construction.
• Be prepared for unpredictable conditions. Contractors don’t control the weather.
• Be responsible for your own actions, which will affect the job.
• Treat others the way you would like to be treated.”