Get Quotes from Top General Contractor in Detroit, MI

Questions to Ask Before Hiring a General Contractor in Detroit

In Detroit, your general contractor charges $36.56 per hour or receives between 10 to 20 percent of the total cost of your home remodeling project. Employing a general contractor is especially helpful when you consider their years of expertise working with vendors, suppliers, and subcontractors, their capacity to keep your building project under budget, and their skill in managing it according to local regulations. Besides, general contractors ensure that your project is safe - mitigating construction injuries and accidents that may cost you additional financial liability.

When selecting a general contractor in Detroit, be sure to always ask the following questions to confirm that they are insured, capable of effectively allocating your available resources, and in compliance with local building regulations.

Are You Licensed to Practice as a General Contractor in Detroit?

Licensing for general contractors in Detroit is handled by the Michigan Department of Licensing and Regulatory Affairs (LARA). In Detroit, a license is necessary for general contracting projects costing $600 or more. To get a general contractor license, a contractor will need to do the following:

  • Complete, at a LARA-approved institution, the required 60 hours of pre-licensing coursework.
  • Send a Michigan builder license application, course completion certificate, and the necessary fees to the state.
  • Pass the residential construction or maintenance and alterations contractor test.
  • Be morally upright

Michigan requires contractors to finish 60 hours of pre-licensing courses that have been approved and can be taken online. This is to ensure that they are knowledgeable about pertinent subjects. Keep in mind that the state only accepts courses from LARA-approved institutions, so applicants are advised to be careful to pick one that qualifies. Also, they are to keep in mind that they cannot take 60 arbitrary hours. Their 60-hour residential building license course must include the following to comply with LARA:

  • Six hours in the Michigan Residential Code
  • Six hours in MIOSHA construction safety standards
  • Six hours in business management, estimating, and job costing
  • Six hours in design and building science
  • Six hours in risk management, contracts, and liability
  • Six hours in sales and marketing
  • Six hours in project planning and management
  • The contractor has 18 hours they can use to take courses in other approved topics that they find interesting.

Contractors can submit an application for a license once they have finished the necessary license coursework. The Residential Builder or Maintenance & Alteration Contractor License or Relicense Application form can then be obtained and filled. Questions about the applicant's criminal past and the criteria for moral character can be found on the application. Additionally, it collects data on the applicant's personal information and the type of license they are applying for. Finally, applicants need to enter a few details about their pre-licensure education. The candidate must submit the completed application along with the following materials:

  • A certificate attesting to the passing of the residential building licensing training
  • The licensing fee, which is $185 for renewal and $195 for first-time licensees,
  • A copy of the applicant's state-issued personal identification card or driver's license

Applicants are to mail the application, payments, and other paperwork to the following address:

Michigan Department of Licensing and Regulatory Affairs
Bureau of Construction Codes/ Licensing Division
P.O. Box 30255
Lansing, MI 48909

After receiving the application and all required materials, LARA will approve the candidate for the residential builder or maintenance and alteration contractor exam. The exam to become a residential builder is administered by the PSI and has two parts: a business and legal section lasting 75 minutes and a practice and trade section lasting 180 minutes. This exam costs $117 if it is the applicants' first time taking it or if they need to retake both parts. They can also retake the practice and trade section for $80 or the business and law section for $70, respectively.

When they pass the exam, the PSI issues an electronic notification to the State of Michigan. They, in turn, mail the applicant their maintenance & alteration contractor license or Michigan builders license. Applicants can start working as a licensed contractor in Detroit as soon as they receive their license in the mail.

For first-time offenders, operating without a license in Detroit carries a penalty of between $5,000 and $25,000 in fines, one year in jail, or both. The maximum jail sentence for further offenses is two years. To verify the license of general contractors in Detroit, use the Michigan Department of License and Regulatory Affairs's licensee search portal.

If you wish to know more about general contractor licensing in Detroit, contact the Michigan Department of License and Regulatory Affairs's Bureau of Professional Licensing at (517) 241-0199.

How Much Do You Charge Compared to Other General Contractors in the City?

General contractors in Detroit base their pricing on a range of factors. In Detroit, the following factors can have a big impact on how much it will cost to hire a general contractor:

  • Conditions and accessibility on the project site
  • How much do the required materials cost
  • How urgent the project is
  • Labor expenses
  • Price of the project's licenses
  • Project kind
  • The project's location within the city
  • Standard of the building plans and site plans
  • Type and scope of the project

It makes perfect sense to obtain project estimates from at least three nearby general contractors and compare their costs before making your final hiring decisions. This could save you a ton of trouble once the job starts. General contractors frequently use the following pricing methods when creating their service estimates:

  • Lump Sum Pricing: With this approach, the contractor frequently provides a single price for all of the services that have been agreed upon. When employing this method of cost prediction, the contractor increases the markup to reflect unanticipated events. This form of payment is frequently made for projects with a defined scope. The good thing about this pricing strategy is if you use it, you won't need to be concerned about incurring additional expenditures as the project develops.
  • Cost Plus Pricing: With this approach, the client pays the contractor a predetermined portion of the project's total cost in addition to full payment for the materials, labor, and support services. The general contractor typically receives 10 to 20 percent of the project's total cost using this method. This pricing technique is suitable for projects with an unclear total scope because the client stands to gain if the project's actual cost turns out to be less than anticipated. The client will need to pay more, though, if the job ends up costing more than expected.

Never choose the contractor with the lowest bid merely because they are the most affordable. You shouldn't do this because some dishonest contractors willfully provide low bids to entice clients before raising rates once work has started. Besides, this is another scam con artists employ to attempt to get your money without plans to do any work once you pay up. Always consider additional factors, such as the contractor's standing and level of experience, as well as the types and extents of the services they propose to offer at the prices they want.

General Contractors in Detroit earn an estimated annual average wage of $76,040. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of Michigan and other locations across the United States:

Detroit General Contractors Average Hourly Wage
$36.56
Lansing General Contractors Average Hourly Wage
$37.40
Wyoming General Contractors Average Hourly Wage
$33.37
Warren General Contractors Average Hourly Wage
$36.56
Grand Rapids General Contractors Average Hourly Wage
$33.37
Dearborn General Contractors Average Hourly Wage
$36.56
New York City General Contractors Average Hourly Wage
$46.94
Chicago General Contractors Average Hourly Wage
$43.15
Houston General Contractors Average Hourly Wage
$36.35
Phoenix General Contractors Average Hourly Wage
$34.77
Source: U.S. Bureau of Labor Statistics

What Kind of General Contractor Services Do You Offer?

General contractors are regularly used to carry out construction-related tasks in Detroit. This may be the case; however, the specific contractor and the project for which they are employed tend to have a greater impact on the services these contractors offer. In any case, a lot of trustworthy general contractors in the city routinely provide these fundamental services:

  • Carry out actual construction, maintenance, and renovation tasks when necessary.
  • Check if the project conforms to all applicable building and safety regulations.
  • Check to see if the required licenses are in place.
  • Deliver the equipment and materials required for the job.
  • Employ as many people as the project requires.
  • Keep an eye on the level of work being completed.
  • Make cost forecasts prior to the project's launch.
  • Make sure that the documentation of the construction project is comprehensive and thorough.
  • Organize with vendors and suppliers.
  • Plan the project's administrative elements, such as scheduling, cash flow, and labor payments.
  • Use specialized subcontractors whenever necessary.

Before entering into any agreements with a general contractor, finding out what services they will offer for your building project is a great idea. Depending on the magnitude of the project, the general contractor could be able to complete it on their own, or they might need to hire a subcontractor to do particular duties. Remember that if a general contractor can't locate someone qualified to fill the position, they may occasionally need to hire these subcontractors from outside of their team. Before being signed, the contract should be discussed and agreed upon.

Subcontractors are frequently used to complete construction-related tasks that the general contractor or workforce may not be qualified to complete, such as plumbing, electrical work, HVAC installation, carpentry, and roofing. The following are some significant distinctions between general contractors and subcontractors who work on building projects:

General Contractors Subcontractors
They interact directly with the clients that hire them the majority of the time. They usually do not interact with the project owner directly because they work for general contractors.
Oversees the project as a whole and might carry out typical building tasks. Work on the special elements of the project
They usually do not need to possess any specialized knowledge May require particular abilities and information.
Collects direct payment from the project owner. Receives payment via the general contractor.

Will You Get the Necessary Permits as Required per the City Code?

Building permitting in Detroit is handled by the Detroit Buildings, Safety and Environmental Engineering Department (BSEED). The Michigan Construction Codes is used by its Structural Division to evaluate construction documents and determine compliance.

The process of getting a building permit in Detroit involves a review of the applicant's credentials and the project for which a permit is being sought. For most jobs, it takes the structural plan reviewer one to three business days to review the construction documents to ensure that they are compliant with the applicable building codes. Larger and more sophisticated projects could require a longer period of time for plan assessment.

Make sure the construction paperwork has all of the necessary information given below, as this will lessen the need for delays and/or adjustments. The submittal requirements are as follows:

  • A licensed architect or professional engineer registered with the State of Michigan must design the project and create the construction documentation. Make sure to include the architect's or professional engineer's seal and signature on every page of the construction documents, as well as the front page or top cover of specifications and calculations. Three full sets of construction drawings, one set of calculations, and one full set of specifications.
  • Describe the entire site plan, highlighting all current and future constructions. Indicate the lengths and locations of lot and property lines, roadway widths, and right-of-ways, among other things.
  • Obtain a permit for the management of soil erosion and sedimentation from the Land Resource Management Division of the Wayne County Department of Public Environment.
  • A copy of the geotechnical investigation and analysis report written by a qualified professional engineer should be submitted. This ought to display the suggested foundation design. Display the alleged soil-carrying capability.
  • Give details on the planned building's construction type, the fire resistance of all its structural components, and the Approved Agency Label rating number that supports that rating.
  • Determine the planned building's Use Group categorization, the occupancy of all areas, the number of occupants on each floor, including the basement, and all rooms and spaces.
  • Show how the planned structure complies with the permitted height and area.
  • Display the layout of the egress on each floor.
  • Declare complete adherence to the State of Michigan's guidelines for barrier-free design. Give enough information on the construction documents.
  • Display all required minimum construction details for the roof's construction and penetrations.
  • Provide the details necessary for the structural design mandated by the 2015 Michigan Building Code.

Bear in mind that in order to obtain the permit, your contractor will require:

  • the place's location's address
  • the number on their City of Detroit Registration License
  • name, address, city, state, zip code, phone number, and email (if applicable), as well as
  • the equipment for which they are obtaining the permit.

You can obtain your permit in person or online using the BSEED's Electronic Licensing and Permitting System. Their walk-in service is open from Monday through Thursday from 8:00 a.m. to 4:30 p.m. However, only Tuesdays and Thursdays are available for obtaining commercial licenses. The walk-in service is particularly helpful for homeowners who need assistance using the online system. Keep in mind that plans must be submitted digitally and be no longer than five pages. If there are more than five pages, submit an online application.

You must complete the following steps in order to obtain a Certificate of Acceptance, which is given once the contractor's work has been certified by a supervisor of the trade for the type of work involved and has passed inspection by a city inspector:

  • Schedule an inspection with a building and safety inspector.
  • The inspector verifies that the work was done in accordance with the most recent codes.
  • The work is then approved by a supervisor and designated complete once it has undergone the final inspection by the Inspector of the right discipline.
  • The permit holder can obtain a Certificate of Acceptance after approval via U.S. Mail, email, or in-person pick-up. A Certificate of Acceptance has a 72-hour turnaround time for customers.

For additional information on permits in Detroit, get in contact with the Buildings, Safety and Environmental Engineering Department at (313) 224-3179 or via email.

Do You Work with Subcontractors?

When selecting your preferred general contractor for your construction project, make sure to ask about the employment of subcontractors. The following factors frequently require general contractors in Detroit to collaborate with subcontractors:

  • Cost-effectiveness.
  • Productivity and flexibility at work
  • When neither they nor their employees are authorized to perform specific technical activities or are qualified to do so.
  • When they need to secure funding for large-scale or diverse projects

For construction projects, general contractors frequently use subcontractors for the following industries:

  • Installation of appliances
  • Carpentry
  • Installation of insulation and drywall
  • Electrical works
  • HVAC installations
  • Masonry works
  • Painting
  • Plumbing
  • Roofing
  • Welding
  • Installation of windows

Even though it is common for the general contractor to choose these subcontractors, you should always take precautions to make sure that you will not be held responsible if there are any issues between your primary contractor and any subcontractors working on the project. Missed payments, poor service, and injuries to the subcontractor are the most frequent causes of these problems.

According to Detroit law, a general contractor may be held accountable for subcontractors if the contractor neglects to exercise reasonable care within the scope of its supervisory and coordinating authority to prevent observable and preventable hazards that place a significant number of workers in a shared work area at risk. Also, take note that the owner will bear the obligations and liabilities of a general contractor when the owner retains sufficient control over the work to have a real impact on the way or circumstances in which it is executed.

In Detroit, suppliers and contractors who are owed money for a building project may file a mechanics lien to compel payment. A mechanics lien is a type of legal instrument that gives the party who hasn't been paid a security interest in the property. Property owners can take the following actions to stay away from potential monetary and legal problems:

  • Work only with licensed contractors, and check the LARA website to verify their status.
  • Verify the licenses of each subcontractor your contractor recruits to ensure they are all licensed.
  • Check your direct contractor's track record for paying suppliers, vendors, and subcontractors, and look up any cases in the nearby courts.
  • Obtain a list of every worker, supplier of materials, and subcontractor your direct contractor plans to use.
  • Get a payment plan that details the start and finish times of various work stages as well as the price for each one.
  • Ensure that your contract specifies the suppliers of the materials as well as the laborers or subcontractors for each part.

Do You Carry the Necessary Insurance Policy for General Contractors in the City?

Given the 54 construction-related fatalities that were reported to the US Bureau of Labor Statistics in Detroit and other areas of Michigan between 2019 and 2020, it is only reasonable to view construction as a risky profession that necessitates a high degree of caution and readiness for the worst-case scenario. Serious safety risks that construction workers may encounter include, but are not limited to:

  • Being outdoors in bad weather
  • Cuts, rips, and lacerations at work caused by equipment and other sharp objects
  • Electrocution
  • exposure to harmful substances such as silica dust and asbestos
  • Falls from a great height
  • Objects that fly or fall and cause accidents
  • Uncomfortable workplace conditions

The general contractor must keep a commercial general liability coverage with a general aggregate limit per project of $2,000,000 for new construction and remodeling projects. This insurance is preferred over any other policies the contractor may decide to buy, and the extra insured language on the Certificate of Insurance that is given to the contractor and the Michigan State Housing Development Authority must include proof of main coverage.

The Workers' Disability Compensation Agency of the Michigan Department of Labor and Economic Growth requires that any employees of your general contractor be covered by workers' compensation insurance with liability limits of $500,000 or that their employer possess an exclusion form if they fall into one of the following categories:

  • The business is a sole proprietorship, and all of the employees are the owner's spouse, children, or parents.
  • In the event that all employees are partners.
  • The business is a stock corporation whose officers are all employees and own at least 10 percent of the company's stock.
  • The business is a limited liability company; every employee is a member, is a manager, and owns 10 percent or more of the company.

You face the risk of being held accountable for any accidents that your general contractor or any subcontractors working on your project cause if they don't have the necessary insurance. Therefore, it is typically in your best interest to confirm these documents with any general contractors in Detroit you choose to hire before they start working on your project and to obtain insurance confirmation.

To find out whether the minimum insurance and bonding requirements are sufficient for the scope of your project and to verify that any subcontractors the contractor hires are insured, you should get in touch with their insurance provider. Ensure your general contractor has professional liability insurance to safeguard yourself from errors on their part.

Do You Provide a Warranty for Works Completed?

In order to ensure that the goods and services customers buy will work as intended, warranties are provided. In the event that a product or service does not perform as promised or intended, warranties are also helpful since they outline the circumstances under which repairs or exchanges would be made. Fundamentally, warranties give customers assurance that the service they are buying will continue to be dependable. General contractors usually offer two warranties:

  • Explicit Warranty: Also known as an express warranty, this is a written commitment. It frequently appears in a contract or proposal for a project. When a buyer learns about a good or service and that knowledge influences their decision to buy the good or service, an express promise is created.
  • Implied Warranty: Even though a warranty isn't specifically mentioned in writing, the law nonetheless recognizes it. Whether or not a written warranty is offered, implied warranties are frequently used in a range of different types of construction projects. They are regarded as the state's default warranty protection.

The following warranty kinds are typically offered:

  • Warranty on Tools and Materials: This ensures that the construction-related equipment and materials are brand-new, error-free, and will perform as intended.
  • Assurance of Workmanship: Under this warranty, the project team and its subcontractors are committed to completing their jobs to the highest standards.
  • Assurance of Habitability: Under this warranty, the finished building or structure is guaranteed to be suitable for its intended use and safe for habitation. Usually, this warranty applies to residential construction.
  • Call-back Warranties: These warranties outline a time frame in which the homeowner and the builder can discuss any problems with the building. Depending on the general contractor, it can take a year or longer.
  • Vendor Warranty: The company that sold the building's fixtures and appliances offers this form of warranty, which typically covers those products.
  • Design-Build Warranty: The services of project specialists like architects and engineers are typically covered by the design-build warranty.

According to Michigan law, an owner has implicit obligations to their contractor. Among them is the need to guarantee that their plans and specifications are precise and appropriate for carrying out the contract. They also have a responsibility to divulge all relevant facts about the project. Additionally, the property owner is responsible for granting access, organizing, and avoiding interfering with the contractors' work.

Implicit obligations of contractors often take the form of implied warranties. Construction companies and general contractors are obligated by law to ensure the suitability or habitability of the buildings they construct. In addition, whether or not it is explicitly mentioned, every contract has an implied warranty of workmanship.

In Michigan, standard industrial contract types include warranty terms with no time restrictions. A call-back warranty mandating the contractor to fix issues that surface within a year after the project is finished is also included in those standard forms. But this does not restrict the warranty period to just one year. If a problem arises within the first year of project completion, the owner may contact the contractor and demand that the problem be fixed. When a defect is found after that first year, the owner can pay for the necessary repairs upfront and meet the contractor for compensation using breach of contract or warranty arguments in court if the contractor refuses to carry out remedial work.

Remember that the homeowner must file a lawsuit in Detroit for a claim of warranty breach within the four-year statute of limitations. However, when the parties are unable to agree on the warranty's duration, arbitration is frequently used to settle disagreements. Arbitration may be a less expensive and time-consuming option than going to court to settle these conflicts.

Can You Provide References of Clients Served in Detroit?

You can look online or contact respectable trade groups and organizations to get recommendations for general contractors in Detroit. You can also ask friends and family who have done similar jobs for recommendations. Detroit is home to a number of general contractor trade associations, such as:

  • The Construction Association of Michigan
  • The Associated General Contractors of Michigan
  • The National Association of Home Builders
  • The Associated General Contractors of America

Regardless of how you contact them, you should always ask for recommendations from local general contractors before signing any hiring contracts. If you want to assess a general contractor's professionalism, honesty, degree of expertise, and service performance, you should request references from past clients that they have worked with. If a general contractor cannot provide references or cannot give you three local references, you shouldn't hire them. This is frequently a symptom of subpar service performance, and you might even be dealing with a fraudulent contractor.

It is imperative to keep in mind that you should always get in touch with the references provided to you to obtain first-hand comments and feedback on the general contractor and how they do their services. You have to do more investigation about the contractor on neutral review websites like Yelp, Google Reviews, your neighborhood Better Business Bureau, and others. Contact the Michigan Attorney General's Office to learn more about any complaints filed against the general contractor and the specifics of those complaints.

What Is the Expected Timeline for This Project?

The best decision you can make is to choose a qualified and experienced general contractor in Detroit because these experts can typically provide you with an estimated completion date. The availability of an estimated timeframe can help the project move along swiftly in addition to aiding you in managing your building project efficiently. Because they typically have an effect on how much a skilled general contractor will charge for a project, the following elements must be taken into consideration:

  • Alterations to the project's plan or scope
  • Inspections and permits
  • The accessibility of labor, materials, and subcontractors for building
  • The project's nature and scope

A precise time estimate that takes into account the project's high points is essential to the success of any construction project and the efficient use of resources. The advantages of making a schedule for a construction project include the following:

  • It helps to avoid misunderstandings with your general contractor.
  • It offers you time to plan for potential eventualities and allows the contractor to devise tactics to cut down on project delays.
  • It boosts the effectiveness of work assignments and completion.
  • It allows you time to make plans for events like marriage, retirement, having a child, and moving.
  • It is easier to monitor the project's progress and ensure the contractor isn't intentionally causing delays.
  • Production increases while costs are reduced.

How to File a Complaint Against a Bad General Contractor in the City

Consumers in Detroit can file complaints against construction and general contractors in the city with the Consumer Protection division of the Michigan Office of the Attorney General, which investigates and handles all consumer cases in the city.

According to a report by Fox 2 Detroit in March 2022, a contractor who had defrauded several individuals was sentenced to jail time and $10,000 in reparations to victims, while his wife, who had assisted him, received probation, community service and was expected to pay up roughly $14,000 in compensation to victims. The man in question had been caught operating as a contractor without a contractor license and had taken money for work that was never completed.

Trusting homeowners are frequently preyed upon by dishonest contractors and con artists in Detroit, employing a range of misleading tactics designed to trick them into parting with their money. The usual general contractor fraud will use one of the following strategies:

  • Contractor inflates the price of specific services
  • Contractor provides a flawed and insufficient contract
  • Multiple contracts are provided by the contractor in an effort to mislead the homeowner.
  • Requests for a significant advance payment from the contractor
  • The contractor sets up high-rate financing for your project with third parties.
  • The credentials provided by the contractor are bogus.
  • The contractor claims that no permits are necessary for your project.

You may verify the reliability of your desired general contractor by carrying out the following checks before they begin any work:

  • Verify the Contractor's License: To verify the general contractor's licensing status, use the licensee search portal of the Michigan Department of License and Regulatory Affairs. If you are unable to find the requested contractor, notify the Department right away.
  • Check the Company's Online Customer Reviews: It's crucial to do extensive research because it could prevent you from falling for a scam. Visit websites like the Better Business Bureau to look up the contractor's profile. In the future, look for qualified general contractors using search engines like Google and Yelp. Do not use contractors that have no website or who only offer testimonials from unverifiable sources.
  • Demand a Detailed Contract: Prior to beginning any job, obtain a thorough contract for the project. Make sure it contains the project's schedule, the kinds of supplies and machinery to be utilized, the overall cost, and warranty information.
  • Obtain Referrals for Contractors: Request recommendations from those you know and trust. Find out who your relatives and close friends utilized for similar jobs and how it went by asking them. Based on their recommendations, you can reasonably predict what to anticipate from these contractors.
  • Avoid Door-to-Door Sales Pitches: Legitimate contractors may knock on doors, but they do not do it as frequently as scammers. It is very likely that these con artists will persuade you that they have unsold stock from earlier jobs, saving you money. However, avoid them at all costs because they frequently act dishonestly in an effort to take advantage of naïve and vulnerable homeowners.
  • Gather a Lot of Quotes: It is imperative to obtain many quotations from general contractors before beginning any project. An outline of the work to be done, the materials to be used, a completion date, and a price should all be included in a written estimate. When you get them, don't just choose the lowest bidder. Request confirmation of the amount and an explanation from your insurance provider. They'll give it to you as well as an estimated cost.
  • Avoid Paying in Full Up Front: Reputable contractors may ask for a down payment, but you shouldn't pay them the full amount until the job is finished. Put down 10 percent of the total if necessary. Avoid paying with cash whenever you can, and hold off on sending the last installment until the project has met your satisfaction and the terms of the contract.

If you think you're working with a dishonest contractor or have fallen victim to general contractor fraud in Detroit, fill out an online complaint form and send it to the Office of the Attorney General of Michigan.

Even if the Attorney General's office is able to assist you in pursuing financial recompense for the dishonest general contractor's actions, keep in mind that a successful outcome is not always assured. Also, bear in mind that the aforementioned organization does not have the authority to represent you in court. However, if you want to sue the contractor for money, you should do so in the 36th District Court in Detroit. You can contact the Detroit Bar Association online or by phone at (313) 961-6120 to request referrals for qualified attorneys who can explain your options and help you with the process if you are thinking about suing the contractor privately.