Building Contract For Alterations And Additions In Michigan
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A contractor must hold a current Michigan residential builder's license or show evidence of ability to obtain a license within six months. A contractor must demonstrate a history of having performed work of the scope and type required for the development.
To be eligible for either a residential builders license or a maintenance and alterations license, you'll need to take 60 hours of pre-license education courses. During those hours, you need at least six hours on each of the following: Business management, estimating, and job costing. Design and building science.
General contracting businesses working on projects valued at less than $600 do not require a license.
Per contract law, a contract is only considered to be legally binding if it is mutually beneficial for all parties involved. This is also known as consideration. When one party does something without getting anything in return, the contract is typically considered unenforceable by the courts.
A construction contract is a mutual or legally binding agreement between two parties based on policies and conditions recorded in document form. The two parties involved are one or more property owners and one or more contractors.
This act requires that builders of new residential construction provide a written warranty to the homeowner, which covers defects in materials and workmanship for a period of one year from the date of occupancy.
Michigan construction contract requirements Only residential construction contracts are regulated in Michigan. Such contracts must be in writing, include the contractor's license number (if a license is required), and cite the statute that requires the contractor to be licensed for their particular trade.
Contracts don't need to be in legal language, but they do need to outline exactly who is responsible for what from obtaining various permissions (such as building control approval) to timings, tidying up, materials, insurance and how payments will be made. A written contract will protect you and reduce risks.
How To Write A Construction Contract With 7 Steps Step 1: Define the Parties Involved. Step 2: Outline the Scope of Work. Step 3: Establish the Timeline. Step 4: Determine the Payment Terms. Step 5: Include Necessary Legal Clauses. Step 6: Address Change Orders and Modifications. Step 7: Sign and Execute the Contract.
