A.  Call the Licensing Department at (517) 241-9288 or visit https://www2.dleg.state.mi.us/colaLicVerify/ to verify that the individual or business entity is licensed. 

B.  Ask the licensee to show you his/her "pocket card" which will contain the license number.

C.  Call the Enforcement Department at (517) 241-9202 or visit https://www2.dleg.state.mi.us/colaLicVerify/ to determine if there have been disciplinary actions against the individual or business entity.

D.  Ask for and verify references.

E.  Check with the Better Business Bureau.

Am I entitled to a written contract for work to be performed by my builder?
 Yes.  Under rule all agreements and changes to the agreements with a builder or contractor must be in writing and signed by all of the parties.

How may I avoid misunderstandings that might arise from my contract with a builder?

• Ensure that the written contract is clear, legible and complete.
• Ensure that the written contract provides information relating to the license of the individual, business entity or qualifying officer of the business entity.
• Ensure that the contract is definite in terms and sufficient to express the intent of the parties, the type/amount of work to be done, type/quality of material to be used, finances and any charge incidental to the agreement.
• Ensure that all changes to the contract are made in writing and dated/initialed by all parties.
• Ensure that you receive a copy of the signed contract and any change orders.

  Does the Department have the authority to enforce the ethical standards of a profession or to settle fee or contract disputes? 
For most professions, including builders, the Department does not have the authority to enforce all aspects of services provided by a profession or occupation, e.g., ethical standards, or to investigate fee/cost disputes.  These matters may be addressed by professional associations that have established standards for its members.  In addition, generally, contractual disputes are also outside the jurisdiction of the Department and may be decided by either contract provisions or a civil court process. 

 Can the Department guarantee restitution, damages or corrections of substandard work?
 The Department cannot guarantee restitution or that the correction of substandard work will be ordered.  Restitution will not be pursued in all situations, and a decision is made on a case-by-case basis. 

Will the Department seek restitution if I am involved in a civil litigation regarding the issues of my complaint?
The Department will not seek restitution if you are engaged in a corresponding civil litigation or arbitration proceeding concerning the matter.

Can I file a civil lawsuit or pursue other court action at the same time I have a complaint with the Department? 
You are free at all times to take action in civil court, at your own expense, and through your own legal counsel, to attempt to recover any and all losses you may have suffered.  Pursuing criminal charges through the local police department, Prosecuting Attorney and/or filing a claim in Small Claims Court may also be an option available to you.  You may file these claims concurrently with the filing of your complaint with this Department. 

Will the Department accept a complaint that is submitted on a form not provided by the Department? 
Yes.  However, you may be asked to complete appropriate Statement of Complaint forms by the Department in order to continue the complaint process.  Also, complaints against a builder should be submitted to the Department using the appropriate Statement of Complaint forms.  All required forms can be obtained by calling (517) 241-9202.  This is to ensure the Department has all required information to investigate your complaint.  Briefly list all of the specific items that form the basis of your complaint. 

Is there a deadline to file a complaint against a builder?
If your complaint is against a residential builder or residential maintenance and alteration contractor, it must be received by the Department no later than 18 months after completion, occupancy or purchase, whichever occurs latest in the case of a residential maintenance and alteration contract.  With regard to projects requiring an occupancy permit, the 18-month period ends with the latest of either the issuance of a temporary certificate of occupancy, a certificate of occupancy, or closing. 

May I be represented by an attorney?
At any point during the complaint process, although not required, the complainants and the respondents have the right to be represented by an attorney, at their own expense.  An attorney, whom the complainants hire, however, cannot participate in a scheduled administrative hearing.  The attorney may communicate on behalf of the complainants with the Department's hearing representative about any concerns of the complainants.  

How will I know that my complaint is received by the Department and if the Department can assist?
The Department will send you a written confirmation of receipt of your complaint within 15 to 30 days after it has received it.  The complaint process may be lengthy.  Please understand that the Department can only assist you if the complaint alleges violations of the Occupational Code or other licensing laws that it regulates.  If the Department does not have jurisdiction over the complaint matter, you will be notified in writing.  If the complaint is within its jurisdiction, an investigation will be initiated.

Who will get a copy of my complaint or correspondence that I have sent to the Department?
The Department may send a copy of your complaint to the respondent for an initial response.  A copy of your complaint file may also be released to other individuals or interest under the Freedom of Information Act.  Therefore, when you file your complaint or when you send correspondence to the Department, do not include confidential information that you do not want to be released. 

Does your Department allow for an alternative dispute resolution of the complaint for me to avoid going to court or wait for the matter to be adjudicated through the administrative hearing process?
For some respondents, such as residential builders and residential maintenance and alteration contractors, a voluntary mediation process may be offered to attempt a resolution of the complaint in a relatively short period of time. 

Mediation will give you and the respondent an opportunity to reach a voluntary resolution of the issues.  You may request a pamphlet that explains the mediation process in more detail by calling the Mediation Division at (517) 241-0317. 

If mediation is offered but is not successful what happens to my complaint?
If mediation is not available or a successful resolution does not result from mediation, the Department will conduct an investigation.  If the investigation determines that the law or a rule has been violated, the Department may file a formal complaint against the licensee to begin the administrative hearing process. 

What is a formal complaint?
A formal complaint is a legal document issued by the Department that cites violations of the law the Department is alleging the respondent has committed in the practice of the profession or occupation.  Once a Formal Complaint is issued, the Department becomes the complainant and the complaining citizen may be asked to participate as a witness on behalf of the Department.  A copy of the Formal Complaint will be sent to you and the respondent. 

What happens after a formal complaint is issued?
Once the Department issues a Formal Complaint, a compliance/settlement conference will be scheduled, but only if the respondent elects the conference option.  The complaining witness may be invited to attend the conference.  If you are the complaining witness and you are invited to the conference, you should bring up-to-date relevant documentation, including receipts or estimates for repairs for only those items listed as violations in the formal complaint or on a building inspection report. 

What is the purpose of the compliance/settlement conference?
The purpose of the conference is to provide the respondent with the opportunity of showing compliance with the law before an administrative contested case hearing is held.  This is required for procedural due process reasons.  Settlement between the Department and the respondent will also generally be discussed with the participants.  If settlement is reached, it will be presented to the appropriate licensing board or official for approval.  If an agreement is not reached, an administrative hearing will be scheduled. 

Why is a formal administrative hearing necessary?
A formal administrative, contested case hearing is necessary to determine if a respondent is responsible for allegations contained in a formal complaint and if the respondent contests the Department's allegations, or if a settlement cannnot be reached, or if the appropriate penalty for violation(s) must be determined by the board or other official.  You, as the complaining witness, may be needed as a witness on behalf of the Department, as determined by the Department's hearing representative.

May I be represented by an attorney at the formal administrative hearing?
 An attorney may represent the respondent at a hearing.  However, if you are the complainant and you have a private attorney, this person is not permitted to participate in the administrative hearing. 

If a private attorney cannnot represent me at an administrative hearing, how may I present my case?
The case is the Department's case after a Formal Complaint is issued.  The Department will be represented by an attorney to present the case, including any appropriate restitution interests on your behalf.  An administrative law examiner presides over the formal hearing. 

How will I know if I am needed as a witness and how will I be prepared for the hearing?
If you are needed as a witness at a hearing, the Department's hearing representative will generally contact you before the hearing to discuss what is expected and what documents you should bring with you.  The documents you may be asked to bring may include all original documents and notes related to the complaint.  You may be required to furnish written documentation to support any estimates for repair and/or proof of payment for repairs, if restitution is at issue.  During a hearing, you should be prepared to answer questions about the material facts of the complaint and any documents used as exhibits at the hearing. 

What is the role of the Administrative Law Examiner?
 The Administrative Law Examiner presides over the hearing of the case, takes testimony and determines whether any violation of the law or rules has occurred.  The Administrative Law Examiner will issue a report of findings to the licensing board and may recommend a penalty in the report.

Must the licensing board or other official accept the Administrative Law Examiner's recommendation of a penalty?
Generally, the licensing board is not bound to accept the Administrative Law Examiner's recommendation of a penalty.  If the hearing result is based on a default, meaning the respondent failed to appear at the hearing when it is held, the board or official may have to accept the recommended penalty.  Under the Occupational Code, the board/official must accept the Administrative Law Examiner's findings of fact and conclusions of law. 

What are the penalties that may be assessed by the licensing board?
The licensing board can assess penalties that may include a limitation on a license, suspension, revocation, fine, probation, or restitution.

May I appeal the decision of a licensing board?
Only the respondent may appeal the decision of a licensing board to a Circuit Court.  Neither the Department nor the originating complainant can appeal the decision of the licensing board.

Who decides on sanctions against a respondent where a board or commission does not exist?
For professions or occupations that do not have a board, settlement agreements and hearing reports are reviewed by the director of the Department or a designee.  Generally that person will determine what appropriate penalties will be imposed based on the Hearing Report of the Administrative Law Examiner, if there is a finding the respondent is responsible for the violations alleged by the Department.

Does the Department conduct criminal prosecution for unlicensed activity?
No.  The Department recommends that you consider pursuing criminal charges through your local police agency or local prosecutors in situations involving the unlicensed practice for professions or occupations regulated by the Department.  The Department does not have the authority to conduct criminal prosecution.  However, the Department will assist your local police agency or local prosecutors in unlicensed investigations, when requested.

Will the Department return my original documents to me if I request them?
No.  The documents you send to the Department become the property of the Department and will not be returned to you.  You are encouraged to make copies of the document you are sending to the Department and retain them for your personal file and for future reference.

 I have heard that the Department has a Homeowner Construction Lien Recovery Fund.  Can this fund be used to reimburse me for problems caused by a builder or contractor?
No.  Although the fund is named the homeowner construction lien recovery fund it is not available for claims by a homeowner for problems caused by a builder or contractor.  The fund is established to protect a homeowner from lien claims of persons or business entities providing labor, material or equipment for improvements to a real property.  If a laborer, subcontractor or supplier furnishes improvements to your home but is not paid for the improvement, a court action may be commenced by the laborer, subcontractor or supplier for the amount due or that has not been paid.  The court may order the construction lien satisfied from the homeowner construction lien recovery fund.  When this happens, the builder or contractor is required to reimburse the amount paid out of the fund.

How do I file a complaint?
You may file a complaint with the Department of Labor & Economic Growth by writing to the following address: 

                     DLEG/Bureau of Commercial Services
                     Enforcement Division
                     P.O. Box 30018
                     Lansing, MI  48909
                     (517) 241-9202

Please be advised that it is best if you file your complaint on forms provided by the Department to avoid unnecessary delays.

Who can file a complaint?
Anyone can file a complaint.  If you think that a firm or an individual who is licensed by the Bureau of Commercial Services has violated the licensing laws and administrative rules that this agency regulates, and is not serving the public in a fair and honest manner, you may file a complaint.

Are all complaints investigated by the Department?
No.  Not all complaints are investigated by the Department.  However, all complaints that are received by the Department will be reviewed to determine if the Department has jurisdiction.  Only those complaints that allege a violation of the licensing laws and rules enforced by the Department will be investigated.  In all instances, the Department will send a letter to you within 15 to 30 days after it has received your complaint acknowledging receipt of the complaint.  If the issues of the complaint do not fall within the authority of the Department, you will be notified.