Does Michigan require contractors to be licensed in Detroit?

Michigan licenses specific trades at the state level, including electrical contractors. Other licensing requirements vary by local jurisdiction. Detroit and surrounding Oakland and Macomb County municipalities have their own permit and contractor registration requirements. Verify through the Michigan Department of Insurance and Financial Services (DIFS) and your local building department. Michigan holds an annual Contractor Fraud Awareness Week each May because the problem is so pervasive.

How do I verify a contractor in Michigan?

For state-licensed trades, check with the Michigan Department of Insurance and Financial Services at michigan.gov/difs. For local contractor registration, contact your specific municipality's building department — requirements differ significantly between Detroit, Troy, Livonia, Dearborn, and other metro cities. For all contractors, also check the Michigan AG's consumer complaint database and the BBB.

What contractor scams are common in the Detroit metro?

Detroit has seen large-scale demolition contractor fraud ($1.2M and $1M+ in two separate cases), storm-chaser exterior contractors, and a documented pattern of contractors taking large payments for home additions and construction projects and using the money for personal expenses while subcontractors go unpaid. The lien exposure from unpaid subcontractors is a specific Detroit-area risk.

What is Michigan Contractor Fraud Awareness Week?

Michigan designates one week each May as Contractor Fraud Awareness Week, run by the Department of Insurance and Financial Services (DIFS) in partnership with the National Insurance Crime Bureau. It exists because home improvement fraud is among the top consumer complaints received by the state every year. DIFS specifically warns against signing storm repair contracts at the door, paying large upfront deposits, and working with contractors who discourage you from filing insurance claims properly.

How do I report a contractor scam in Michigan?

File a complaint with the Michigan Attorney General at michigan.gov/ag or the Department of Insurance and Financial Services at michigan.gov/difs. For local issues, also contact your city or county building department. Document all contracts, payments, messages, and photos before filing.

How to Find a Good Contractor in Detroit: Michigan Licensing, Fraud Cases, and Verified Pros

Finding a good contractor in Detroit requires knowing that Michigan has documented some of the most significant contractor fraud cases in the Midwest — including two separate Detroit contractors who pleaded guilty to more than $1 million in fraud each in the same year. A 2026 Bridge Michigan investigation also found that the state has struggled to investigate contractor complaints in a timely way, leaving many homeowners without recourse after they've been defrauded.

Michigan's Contractor Licensing Landscape

Michigan's licensing structure is more complex than many Midwest states because requirements vary significantly by trade and by local jurisdiction.

State-level licensing:

Electrical contractors: Licensed through the Electrical Administrative Board
Mechanical (HVAC): Licensed through the Bureau of Construction Codes
Plumbing: Licensed at both state and local levels

Local licensing: Oakland County, Macomb County, Wayne County, and each individual city (Detroit, Livonia, Troy, Dearborn, Sterling Heights, etc.) may have additional contractor registration requirements. There is no uniform standard.

How to verify:

State trade licenses: michigan.gov/difs — also the source for Contractor Fraud Awareness Week resources
Local permits and registration: Your specific municipality's building department
AG complaint history: Search at michigan.gov/ag before hiring
Insurance verification: Call the carrier directly at a number you find independently

Michigan's documented problem: A 2026 Bridge Michigan investigation found that state regulators had not kept pace with the volume of contractor fraud complaints, with many cases going uninvestigated for extended periods. This makes your pre-hire vetting process even more important — waiting for the state to act after the fact is not a reliable fallback.

Documented Detroit-Area Contractor Fraud Cases

Detroit — David Holman, demolition contractor fraud ($1.2M): Holman pleaded no contest to fraudulently billing the City of Detroit and the federal TARP program over $1.2 million in a residential demolition program. His work involved using unapproved, potentially contaminated backfill material at residential lots — leaving neighborhoods with both financial and environmental exposure. Agreed to pay full restitution. (Hoodline, March 2024)

Detroit — second demolition contractor, $1M+ fraud: A second contractor in the same Detroit demolition program also pleaded guilty to fraudulently billing the city over $1 million. Two separate contractors in one government program both committing seven-figure fraud in the same period. (Michigan AG, March 2024)

Northern Michigan — Travis Reimer, $400,000+ fraud: Homeowners across northern Michigan paid Reimer more than $400,000 for home additions and construction projects. Police allege he had subcontractors do partial work but pocketed their payments instead of paying them — leaving homeowners exposed to mechanics liens from unpaid subs on top of incomplete projects. Charges filed in 2024–2025. (CBS Detroit)

The Unpaid Subcontractor Risk in Michigan

The Reimer case highlights a specific risk that is particularly relevant in Michigan: unpaid subcontractors creating mechanics liens on your property.

When a general contractor takes your payment but doesn't pay their subcontractors or material suppliers, those parties have the right under Michigan law to file a lien against your home — even after you've paid the GC in full. This is not a rare edge case. It appears in multiple Michigan fraud cases.

Protection:

At each payment milestone, require signed lien waivers from the GC and all subcontractors
For large material purchases, request a joint check arrangement — the check goes to both the GC and the supplier
Ask the GC to provide a list of all subcontractors before work begins

What to Ask Before Hiring a Detroit-Area Contractor

What is your Michigan state license number and which agency issued it? (For trade contractors)
Which municipality are we pulling permits through, and do you have an active relationship with their building department?
Have you had any complaints filed with the Michigan AG or DIFS in the last three years?
Who are your subcontractors for this project, and can you provide their names before we sign?
Will you provide signed lien waivers from all subcontractors and suppliers at each payment milestone?
Can I call your insurance carrier directly to verify the policy is current?

Find Verified Contractors in Detroit

For the complete vetting checklist, what every contract must include, and how to protect yourself with lien waivers, see the complete Midwest contractor guide.

Report fraud in Michigan: michigan.gov/ag or michigan.gov/difs.