From The Detroit News | By Ken Calverley and Chuck Breidenstein
DETROIT, December 5, 2024 ~
When we started the show more than 16 years ago, we hoped to avoid stories like this one.
A listener was looking to have a large remodel completed that included a bathroom.
The opening line of the email we received was, “I wish I had known about you guys sooner.”
A local product retailer claimed to have the expertise to accomplish the project and began the job with a lot of specifications and cost information not spelled out in writing.
Partway through the job, the homeowner discovered that not only was the retailer not properly licensed, but no permits were being pulled for the work and, thus, no code compliance inspections were conducted.
When a change in product or specification was required, the ostensible contractor would not reduce the change to writing and would simply indicate later pricing changes would “be affordable” — which they were not.
December 1, 2024 ~ Chuck “The Inside Guy” Breidenstein and Ken “The Outside Guy” Calverly offer the knowledge and resources you need to make the home of your dreams a reality.
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To add insult to injury, much of the work had to be done a second time by a licensed professional so the owner ended up paying twice.
The email we referred to was a request for information about taking action against the initial contractor.
While the Guys often give advice based on our experience in the industry, we defer legal guidance to attorneys that have experience in the construction arena.
On the cusp of a busy economy like we have seen in the past few years; many owners feel the need to issue formal complaints against practitioners.
When someone who is not properly licensed proports to be able to do what a licensee does, they are in violation of the law and any written or verbal agreement you enter in to with them regarding construction on a residential property is likely null and void based on the merits of the deception.
In theory, a demand letter received claiming monies owed subsequent to such an illegal transaction or threatening a possible lawsuit and, or a lien on the property, can be dismissed out of hand.
But attorneys we have talked with advise never to ignore such notifications, and to always engage professional legal counsel to handle the issue on your behalf.
The Michigan Attorney General’s office accepts supporting evidence and claims to this effect through its Consumer Protection Division.
Be aware that workmanship claims may be difficult to pursue. The standard for quality of performance is often deferred to “the custom of the trade as verified by a code enforcement official.”
Contractors may also include written performance guidelines in their agreement to define acceptable quality. If a court deems these to be within the custom of the trade, your claim may be dismissed.
What about claims made against a licensee?
The state of Michigan, and many other states, provides for a process to pursue various types of complaints against those with builder’s or contractor’s licenses.
Note that the Bureau of Construction Codes does not have jurisdiction over contractual, monetary, or warranty issues, nor does it conduct criminal prosecution.
It must receive a complaint within 18 months after completion, purchase, or occupancy, whichever occurs latest.
Complaints can be initiated at MI.gov/LARA. Lara is the Licensing and Regulatory Affairs Department and furnishes forms online for completion by the homeowner.
Any substantiating documentation is encouraged, from written agreements to proof of payment, dates and clear photographic evidence.
If a licensee’s contract contains an Alternative Dispute Resolution clause, the state agency may defer to that procedure.
Contractors are often encouraged to employ such language, citing Binding Arbitration by a recognized, and impartial, third-party agency in their agreements.
The suggestion for most homeowners is to only hire contractors based on strong and trustworthy referrals. While a high-touch industry like construction will never be perfect, outcomes are far more likely to be favorable when hiring proven professionals.
And the great thing about the companies you can find every day at Insideoutsideguys.com is they are dedicated to making your project participation with them a five-star experience.
Do it once. Do it right and enjoy it.
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For more advice, listen to the Inside Outside Guys every Saturday and Sunday on AM760-WJR from 10 a.m.-noon or contact us at InsideOutsideGuys.com.
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