Hiring a general contractor is one of the most important decisions you will make during a construction or renovation project. The wrong choice can lead to delays, cost overruns, and work that does not meet code. The right choice gives you a trusted partner who protects your investment from start to finish.
In Michigan, the process comes with specific licensing and regulatory requirements that set it apart from other states. This checklist will walk you through exactly what to look for, what to ask, and what to avoid when choosing a general contractor in 2026.
Why Choosing the Right Contractor Matters
A general contractor manages every aspect of your project: permits, subcontractors, materials, scheduling, inspections, and budget. When something goes wrong with any of those, the contractor is your first line of defense. Choosing based on the lowest bid alone is one of the most common (and most expensive) mistakes Michigan homeowners make.
The stakes are real. Unlicensed or underinsured contractors expose you to personal liability, failed inspections, and work that may need to be torn out and redone. Taking the time to verify credentials upfront saves you from those outcomes.
The 2026 Michigan General Contractor Checklist
1. Verify Their Michigan Builder License
Michigan requires a residential builder license for any contractor working on projects over $600 in labor and materials. This is regulated by the Department of Licensing and Regulatory Affairs (LARA). There are two relevant license types:
- Residential Builder License: Required for new construction, additions, and major renovations on residential properties.
- Maintenance and Alteration Contractor License: Covers smaller repair and remodeling work.
You can verify any contractor's license on the LARA website. Search by name or license number to confirm their status is current and there are no disciplinary actions on file.
For example, SW Construction holds Michigan Residential Builder License #2623-008181. Any reputable contractor should be able to provide their license number without hesitation.
2. Confirm Insurance Coverage
At a minimum, your contractor should carry:
- General liability insurance (at least $1 million per occurrence). This protects your property if something goes wrong during the project.
- Workers' compensation insurance. Michigan law requires this for any contractor with employees. It protects you from liability if a worker is injured on your property.
Ask for a Certificate of Insurance (COI) directly from their insurance provider. Do not accept a photocopy or screenshot from the contractor. Call the insurer to verify the policy is active and the coverage limits are adequate for your project size.
3. Check Their Track Record
Look beyond the contractor's own website. Check these sources:
- Google Business Profile reviews: Look for patterns in recent reviews, not just the overall rating.
- Better Business Bureau (BBB): Check for complaint history and resolution patterns.
- LARA complaint records: The state tracks formal complaints against licensed builders.
- References: Ask for three to five references from projects similar to yours in scope and budget. Call them.
4. Understand the Permit Process
In Oakland County and surrounding areas, most construction projects require permits from your local building department. A legitimate contractor handles the permit process as part of the project scope. If a contractor suggests skipping permits to "save time" or "save money," that is a major red flag.
Permits matter because they trigger inspections at critical stages (foundation, framing, electrical, plumbing, final). Those inspections confirm the work meets Michigan building code. Without them, you may face problems when selling your home or filing an insurance claim.
5. Ask the Right Questions Before Signing
Before you sign any contract, ask these questions:
- What is your Michigan builder license number? (Verify it yourself on the LARA website.)
- Can you provide a current Certificate of Insurance showing general liability and workers' comp?
- Who will be on site daily managing the project?
- How do you handle change orders? Is there a written process?
- What is your payment schedule? (Be cautious of anyone requesting more than one third upfront.)
- What is your estimated timeline, and what could cause delays?
- Do you pull all required permits, and are inspection costs included in the bid?
- What warranty do you offer on your work?
- Can you provide references from projects completed in the last 12 months?
6. Watch for Red Flags
| Red Flag | Why It Matters |
|---|---|
| No written contract | Verbal agreements offer no legal protection. Michigan law requires written contracts for residential projects over $600. |
| Demands full payment upfront | Standard practice is a deposit (typically 10 to 33 percent) with progress-based payments tied to milestones. |
| Cannot provide license number | Operating without a license is a violation of Michigan law and leaves you unprotected. |
| Pressures you to skip permits | Unpermitted work can result in fines, forced removal, and complications with insurance or resale. |
| No physical business address | A contractor with no established location is harder to hold accountable if issues arise. |
| Unusually low bid | If one bid is dramatically lower than others, the contractor may be cutting corners on materials, labor, or insurance. |
7. Verify Everything Independently
Do not take any contractor's word at face value. Verify independently:
- License: LARA License Lookup on the Michigan.gov website
- Insurance: Call the insurer listed on the COI
- References: Call past clients and ask about communication, timeline accuracy, budget adherence, and how the contractor handled problems
- BBB: Search for the company on bbb.org
This takes an hour or two. It can save you thousands of dollars and months of frustration.
Ready to Start Your Project?
SW Construction is a licensed Michigan residential builder (License #2623-008181) serving Oakland County and the surrounding areas. We carry full general liability and workers' compensation insurance, pull all required permits, and provide detailed written contracts for every project.
If you are planning a construction or renovation project in Southeast Michigan, we would be happy to walk through your plans and provide a transparent estimate. Call us at (248) 804-5884 or request your free estimate online.