Home Fee Cost Plus Contract For Construction In Michigan
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FAQ
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.
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.
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.
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.
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.
