Use this contractor disputes guide to build a clear demand letter for Grand Rapids.
Contractor Disputes in Grand Rapids: Your Guide to Getting Work Completed or Money Refunded
When you hire a contractor in Grand Rapids for a home improvement project, you expect professional work completed on time and within budget. Unfortunately, contractor disputes are all too common in West Michigan. Whether you're dealing with an abandoned kitchen remodel in East Grand Rapids, a botched roofing job in Kentwood, or a contractor who took your money and disappeared, Michigan law provides protections for homeowners and remedies for recovering damages.
Grand Rapids has experienced significant growth and development, leading to high demand for contractors of all types - from general contractors handling major renovations to specialized trades like plumbers, electricians, and roofers. This demand, combined with varying levels of professionalism in the industry, creates conditions where disputes are common. Some contractors fail to complete work, others do substandard work, and some simply take deposits and vanish.
Michigan's Residential Builders Act requires licensing for many types of construction work, and violations of this act can provide homeowners with significant leverage. Additionally, Michigan's Home Improvement Contract Act provides specific protections for consumers entering into home improvement contracts. Understanding these laws and how they apply to your situation is essential for effectively resolving contractor disputes.
This comprehensive guide will explain your rights under Michigan law, walk you through the process of documenting problems and sending an effective demand letter, help you understand your options for recovering money or getting work completed, and outline the steps to take if your contractor refuses to cooperate. Whether you're dealing with incomplete work, defective construction, or outright fraud, this guide will help you take effective action.
Michigan Contractor Laws: Your Legal Protections
Michigan has several laws that protect homeowners in contractor disputes. Understanding these laws is essential for effectively pursuing your claim.
Michigan Residential Builders Act (MCL 339.2401-339.2412)
The Residential Builders Act requires licensing for residential builders and maintenance and alteration contractors. Key provisions:
Any person who constructs, alters, repairs, or adds to a residential structure must be licensed. This includes general contractors and many subcontractors. The Michigan Department of Licensing and Regulatory Affairs (LARA) administers licensing.
You can verify a contractor's license at michigan.gov/lara. Check that the license is current and in good standing.
If a contractor was not properly licensed when they performed work, they cannot sue you to enforce the contract or collect payment. Furthermore, you may be able to recover all payments made to an unlicensed contractor under MCL 339.2412.
Contractors who violate the act or fail to perform work properly can face license suspension or revocation. Filing a complaint with LARA can result in disciplinary action.
Michigan Home Improvement Contract Act (MCL 445.61 et seq.)
This act provides specific protections for home improvement contracts over $1,000:
Contracts must be in writing and include specific information such as the contractor's name, address, and license number; a description of the work; the total price; and payment schedule.
Homeowners have a 3-business-day right to cancel most home improvement contracts. The contractor must provide notice of this right.
The act limits the amount of down payment a contractor can require (typically no more than 1/3 of the total contract price, with some exceptions).
Violations of the act can provide grounds for contract rescission or damages.
Michigan Consumer Protection Act (MCPA)
The MCPA (MCL 445.901-445.922) prohibits unfair and deceptive business practices. Contractor misconduct may violate the MCPA if it involves:
- Misrepresenting the quality, characteristics, or cost of work
- Advertising services with intent not to perform as advertised
- Making false statements about licensing or qualifications
- Failing to reveal material facts
Victims of MCPA violations can recover actual damages or $250, whichever is greater. For knowing violations, courts may award double damages or $500, whichever is greater, plus attorney fees.
Breach of Contract
The basic contract principles apply to contractor agreements. If a contractor fails to perform as agreed, fails to complete work, does defective work, or abandons the project, they have breached the contract. Remedies for breach include:
- Damages: The cost to complete or repair the work, plus any consequential damages
- Specific Performance: In rare cases, court may order the contractor to complete the work
- Rescission: Cancellation of the contract with return of payments
Mechanic's Liens and Construction Liens
Under Michigan's Construction Lien Act (MCL 570.1101 et seq.), contractors and subcontractors may place liens on property for unpaid work. Understanding liens is important:
- If you've paid the general contractor but they didn't pay subcontractors, you may face liens
- Demanding lien waivers from the general contractor before final payment protects you
- If a contractor filed an improper lien, you may have claims against them
Small Claims Court Jurisdiction
For disputes up to $6,500, you can pursue your claim in small claims court (61st District Court for Grand Rapids). This provides an accessible, low-cost forum for most residential contractor disputes.
Step-by-Step Guide to Resolving Contractor Disputes in Grand Rapids
Before taking any action, create comprehensive documentation:
- Photograph all defective, incomplete, or damaged work
- Take videos showing the scope of problems
- Document any safety hazards created by poor work
- Note dates when problems were discovered
- Compare completed work to contract specifications
Carefully examine your written contract (or reconstruct the terms if verbal):
- What work was promised and by what date?
- What is the total contract price and payment schedule?
- Are there warranty provisions?
- What does the contract say about disputes?
- Does the contract include the contractor's license number?
Check the contractor's license status at michigan.gov/lara:
- Is the license current and active?
- Was it valid when work was performed?
- Are there any disciplinary actions or complaints?
- What type of work is the license valid for?
If the contractor was unlicensed, this significantly strengthens your position.
Determine the amount you're owed:
- Payments made to the contractor
- Cost to complete unfinished work (get multiple estimates)
- Cost to repair defective work
- Cost of materials you purchased that went unused
- Any consequential damages (e.g., additional rent while delayed)
Before formal action, try to resolve the dispute directly:
- Contact the contractor in writing (email or letter)
- Specifically describe the problems
- State what resolution you want (completion, repair, or refund)
- Give a reasonable deadline (10-14 days)
- Keep copies of all communications
If direct communication fails, send a formal demand letter:
- Address it to the contractor by name and company
- State the contract date and work performed
- Detail the problems with specific reference to contract terms
- Include your calculation of damages owed
- Cite applicable Michigan laws (Residential Builders Act, MCPA)
- Note if the contractor is unlicensed
- Set a deadline for response (10-14 days)
- Send via certified mail with return receipt requested
Strengthen your case with professional opinions:
- Get written estimates from other licensed contractors to complete/repair work
- Consider hiring an independent home inspector to document defects
- For structural issues, consult a licensed engineer
- Keep receipts for any assessment fees
If the contractor is licensed, file a complaint:
- Michigan LARA, Bureau of Professional Licensing
- Website: michigan.gov/lara
- Phone: (517) 373-0100
- Provide contract, communications, photos, and other evidence
- LARA can investigate and take disciplinary action against the contractor's license
Consider additional complaints:
- Better Business Bureau of Western Michigan: (616) 774-8236
- Michigan Attorney General Consumer Protection: (517) 335-7599
- Kent County Consumer Protection (if applicable)
Before litigation, mediation may help:
- Mediation is less expensive and faster than court
- Some contracts require mediation before lawsuit
- Grand Rapids has community mediation services
- A neutral mediator can help reach settlement
For claims up to $6,500, small claims is accessible:
- 61st District Court, 180 Ottawa Avenue NW, Grand Rapids
- Filing fee: approximately $30-$70
- You don't need an attorney
- Bring all documentation, photos, and estimates
- The contractor may countersue for any balance claimed owed
For claims over $6,500:
- Kent County Circuit Court handles larger civil cases
- You may want to hire an attorney
- The MCPA provides for attorney fee recovery in some cases
- Class actions are possible if the contractor harmed multiple homeowners
Essential Evidence for Grand Rapids Contractor Disputes
Winning a contractor dispute requires solid evidence. Here's what to gather:
- Signed written contract (if available)
- Contract addenda, change orders, and modifications
- Payment schedule and terms
- Warranty provisions
- Contractor's license number and business information
- If no written contract, reconstruct terms through emails, texts, and notes
- Canceled checks or bank statements showing payments
- Credit card statements
- Receipts provided by contractor
- Payment schedule showing what was paid when
- Evidence of any deposits given
- Photographs of defective or incomplete work from multiple angles
- Videos showing the extent of problems
- Before and after comparisons (if you have photos from before)
- Photos showing contract specifications versus actual work
- Date-stamped images whenever possible
- Documented start date and promised completion date
- Records of work actually performed and when
- Evidence of delays and their causes
- Dates when contractor stopped showing up
- Timeline of communications and responses
- All emails with the contractor
- Text messages (screenshot and save)
- Voicemail transcripts or recordings (if legal)
- Written letters sent and received
- Notes of phone conversations (date, time, content)
- Certified mail receipts and return cards
- Written estimates from other licensed contractors to complete/repair work
- Home inspection reports documenting defects
- Engineer's reports for structural issues
- Building inspector findings if permits were involved
- Receipts for inspection fees
- Contractor's license number and verification
- LARA license lookup results
- Business registration information
- Any complaints or disciplinary actions on file
- Evidence of unlicensed work (if applicable)
- Building permits (or evidence work required permits not obtained)
- Inspection reports and failures
- Code violations cited
- Certificates of occupancy issues
- Names and contact information for witnesses who observed the work
- Neighbor statements about contractor behavior
- Subcontractor statements about project issues
- Family members who can verify timeline
- Additional rent or hotel costs if you couldn't live in the home
- Costs to store belongings during work
- Lost wages if you had to take time off
- Damage to personal property caused by contractor's work
- Utility costs resulting from inefficient work
- Receipts for materials you purchased
- Evidence of materials promised but not delivered
- Evidence of substandard materials used
- Surplus materials not accounted for
- Create a chronological file of all documents
- Make a summary spreadsheet of payments and damages
- Keep originals safe and use copies for submissions
- Back up all digital evidence
- Create a timeline document for easy reference
Critical Deadlines for Contractor Disputes in Michigan
Understanding deadlines is crucial for protecting your rights in contractor disputes.
- Consumer protection claims: 6 years (follows general contract statute)
- Claims should be filed promptly while evidence is fresh
- For latent defects (hidden problems): 6 years from discovery or when defect should have been discovered
- For patent defects (obvious problems): 6 years from when work was completed
- No strict deadline, but complaints should be filed promptly
- Older complaints may be harder to investigate
- The contractor's license must be active for disciplinary action
- Contractor must file lien within 90 days of last furnishing labor/materials
- Lawsuit to enforce lien must be filed within 1 year
- Understanding these deadlines helps if a contractor threatens a lien
- Set a reasonable deadline: 10-14 days
- This is your deadline, not legally required
- Follow up promptly when deadline passes
- Filing: Can be done as soon as demand letter fails
- Service: Typically 7-14 days after filing
- Hearing: Usually 4-8 weeks after filing
- Appeal: 21 days from judgment
- Building inspections must be requested at specific stages
- Work done without proper inspections may need to be redone
- Verify if required inspections were completed
- Review contract warranty terms
- Many states imply warranties on construction work
- Michigan's implied warranty of habitability may apply to new construction
- Days 1-7: Document all problems, review contract
- Days 7-14: Verify license, attempt direct resolution
- Days 14-21: If no response, send formal demand letter
- Days 21-35: Wait for response, gather estimates
- Days 35-42: File LARA complaint and consider legal action
- Days 42+: File small claims court or consult attorney
- Don't wait until close to deadline; evidence gets stale
- Continuing to work with a non-performing contractor may complicate claims
- Document the date you discover each problem
Common Mistakes to Avoid in Grand Rapids Contractor Disputes
Many homeowners undermine their contractor claims through avoidable errors. Here's what to watch out for:
The most common mistake is paying large deposits before work is complete. Michigan law limits down payments for home improvement contracts. Never pay for work not yet performed. Use payment schedules tied to completion milestones.
Verbal agreements are difficult to prove and enforce. Always insist on a written contract that specifies the work, price, timeline, and payment schedule. Even for small jobs, get the terms in writing.
Many homeowners never check if their contractor is licensed. Before signing any contract, verify the license at michigan.gov/lara. Unlicensed contractors cannot enforce contracts or sue for payment.
Cash payments without receipts leave no paper trail. Always pay by check or credit card, or get signed receipts for cash payments. This proves what you paid.
Waiting until the project is complete to document issues weakens your case. Take photos and videos throughout the project. Document problems as they occur.
Some homeowners keep making payments hoping the contractor will eventually fix problems. Stop payments when serious problems emerge (but document why you stopped). Making full payment makes it harder to get resolution.
Contractors may threaten to file liens, sue, or abandon the job if you complain. Know your rights. A contractor who hasn't completed work properly has limited leverage.
When calculating damages, you need proof of repair costs. Get multiple written estimates from licensed contractors. Single estimates may be challenged as too high or too low.
Once you start fixing problems, evidence of the contractor's failures disappears. Document everything thoroughly before making any repairs. Let the contractor see the problems if possible.
Many homeowners don't know if their project required building permits. Work without required permits can result in fines, required demolition, and insurance issues. Verify permit requirements with Grand Rapids Building Inspections.
Keeping defective materials, failed components, and other physical evidence can help your case. Don't throw away evidence of poor work.
Signing a lien waiver before you've verified the contractor paid subcontractors can leave you exposed. Get waivers from all subcontractors before signing off on final payment.
Statutes of limitations can bar claims. Evidence degrades. Contractors may go out of business. Act promptly when problems arise.
Homeowners often think small claims is their only option. Consider LARA complaints (license action), MCPA claims (potential double damages), and consulting an attorney for larger claims.
Asking for far more than your actual damages can hurt credibility. Calculate damages realistically based on actual costs to repair or complete work.
Frequently Asked Questions About Contractor Disputes in Grand Rapids
If your contractor performed work without the required license under the Michigan Residential Builders Act, you have significant leverage. The contractor cannot sue you to enforce the contract or collect payment. You may be able to recover all payments made to the unlicensed contractor under MCL 339.2412. Additionally, you can file a complaint with LARA about the unlicensed activity.
Verify contractor licenses through the Michigan Department of Licensing and Regulatory Affairs (LARA) at michigan.gov/lara. Search for the contractor by name or license number. Check that the license is current, covers the type of work being performed, and has no disciplinary actions.
Michigan small claims courts handle cases up to $6,500. For Grand Rapids residents, small claims cases are heard in the 61st District Court at 180 Ottawa Avenue NW. Filing fees are approximately $30-$70. You don't need an attorney for small claims court.
Yes. If the contractor hasn't completed the work as agreed, you generally have the right to withhold payment for the incomplete portion. Document the incomplete work and communicate in writing why you're withholding payment. Be prepared for the contractor to dispute this or threaten a mechanic's lien.
Don't panic. A mechanic's lien requires the contractor to have actually performed work and followed specific procedures. If the contractor failed to complete work or did defective work, you may have defenses. Consult an attorney if a lien is filed. Document your disputes in writing. A lien based on disputed work may be invalid.
You can recover your actual damages, including payments made for incomplete work, cost to hire another contractor to complete the job, cost to repair defective work, and consequential damages. Under the MCPA, you may also recover actual damages or $250 (whichever is greater), and double damages for knowing violations, plus attorney fees.
Yes, if the contractor is licensed. Filing with LARA can result in investigation and disciplinary action against the contractor's license, including suspension or revocation. This creates pressure for resolution and protects other consumers. Even if it doesn't directly recover your money, it's an important accountability mechanism.
This may constitute theft or fraud. Document everything, including the contract, payments made, and lack of work performed. File a police report. File complaints with LARA, BBB, and the Michigan Attorney General. Consider small claims court or regular court. An attorney can advise on fraud claims.
What to Expect When Resolving Contractor Disputes in Grand Rapids
Understanding typical outcomes helps you navigate contractor disputes effectively.
However, non-responsive or dishonest contractors may require formal action.
However, LARA doesn't directly recover money for consumers.
Reasonable settlements typically fall between 50-100% of claimed damages depending on case strength.
Collecting may require additional legal proceedings.
Many contractor disputes can be resolved through direct communication, particularly if: - The contractor wants to maintain their reputation - The problems are correctable - The contractor didn't act in bad faith
A well-crafted demand letter citing specific problems, damages, and Michigan law often produces results. Licensed contractors know that LARA complaints can threaten their license. The threat of double damages under MCPA adds pressure. Response rates improve when the letter is specific and professional.
Filing a LARA complaint can: - Prompt the contractor to resolve the dispute to avoid license action - Result in formal disciplinary proceedings - Create public record of contractor problems - Potentially lead to license suspension or revocation
In small claims court (61st District Court): - Cases are typically heard 4-8 weeks after filing - Hearings last 15-30 minutes - Judges understand construction disputes - Well-documented cases usually prevail - The contractor may file a counterclaim
Damages typically include: - Payments made for work not completed: Full recovery - Cost to complete work: Difference between what you paid and what it actually costs - Cost to repair defective work: Reasonable repair costs documented by estimates - MCPA damages: Actual damages or $250, doubled for knowing violations - Attorney fees: Available under MCPA for successful claims
Many cases settle before or during litigation. Settlement factors include: - Strength of documentation - Contractor's desire to avoid license issues - Amount at stake - Each party's time and cost concerns
Some contractors may be difficult to collect from: - Small contractors may have limited assets - Contractors who frequently change company names - Judgment-proof defendants
- Direct resolution: 2-4 weeks - Demand letter process: 2-4 weeks - LARA investigation: Weeks to months - Small claims court: 2-3 months - Larger litigation: 6+ months
Grand Rapids Contractor Dispute Resources and Contacts
Grand Rapids residents have access to numerous resources for contractor disputes:
Michigan LARA, Bureau of Professional Licensing: Phone: (517) 373-0100. Website: michigan.gov/lara. Verifies licenses, accepts complaints, takes disciplinary action.
61st District Court (Small Claims): 180 Ottawa Avenue NW, Grand Rapids, MI 49503. Phone: (616) 632-5700. Claims up to $6,500.
Kent County Circuit Court: 180 Ottawa Avenue NW, Grand Rapids, MI 49503. Phone: (616) 632-5480. Larger civil claims.
Michigan Attorney General Consumer Protection: Phone: (517) 335-7599. Website: michigan.gov/ag.
BBB of Western Michigan: 40 Pearl Street NW, Suite 354, Grand Rapids, MI 49503. Phone: (616) 774-8236.
Grand Rapids Building Inspections: Phone: (616) 456-3139. Permit verification, code compliance.
Kent County Building Department: Phone: (616) 632-7910. For projects outside Grand Rapids city limits.
Legal Aid of Western Michigan: 89 Ionia Avenue NW, Suite 400, Grand Rapids, MI 49503. Phone: (616) 774-0672. Website: lawestmi.org. Free services for qualifying individuals.
Grand Rapids Bar Association Lawyer Referral: Phone: (616) 454-0278.
State Bar of Michigan Lawyer Referral: Phone: (800) 968-0738.
Mediation and Arbitration Services of Western Michigan: Alternative dispute resolution options.
Community mediation programs available through local organizations.
Grand Rapids Public Library: 111 Library Street NE. Legal research resources.
LARA Contractor Search: michigan.gov/lara (verify licenses before hiring).
The Contractor Checkmate
Contract is King
Written agreement? Good. Verbal? Tougher, but texts and emails can help.
Document the Damage
Photos, videos, expert opinions. Every flaw is evidence.
Money Trail Matters
Payments, invoices, change orders… track every dollar.
The Contractor's Legal Nightmare
Many states require contractors to be licensed, and there can be serious penalties for unlicensed work or abandoning a project.
Michigan Contractor Disputes Laws
Applicable Laws
- Michigan Residential Builders License
- MCL 339.2401
Small Claims Limit
$6,500
Consumer Protection Agency
Michigan LARA
Contractor Combat FAQ
When should I send a demand letter?
After reasonable attempts to resolve the issue directly fail. Give them a chance to fix problems, but don't wait indefinitely.
What if they're unlicensed?
That could be a major advantage. Many states void contracts with unlicensed contractors or allow full refund of payments made.
Can I withhold final payment for incomplete work?
Generally yes, especially if there's a written contract. Document the incomplete items and the amount you're withholding.
What if they filed a mechanic's lien?
You may still have claims against them. Dispute the lien if work wasn't completed satisfactorily. Consider consulting an attorney.
Should I get repair estimates from other contractors?
Yes. Independent estimates document the cost to fix problems and show what proper work should cost.
What about permits they never got?
Unpermitted work creates serious liability. The contractor may be required to obtain permits or undo work at their expense.
Can I recover more than my actual damages?
Often yes. Consumer protection laws may allow double or triple damages, plus attorney fees for contractor fraud or violations.
About FreeDemandLetter
FreeDemandLetter provides free, AI-powered demand letter generation with location-specific legal citations. Our content is reviewed by subject matter specialists and regularly updated to reflect current laws. We help thousands of people resolve disputes effectively—but we're not lawyers, and this isn't legal advice. For complex situations, consult a licensed attorney in your jurisdiction.