The Michigan Department of Consumer and Industry Services recommends:

• Checking that a contractor is licensed.  Licensing can be verified by calling the Department of Consumer and Industry Services at (900) 555-8374, or check the Website: https://www.michigan.gov/lara
• Putting the contract and any changes in writing.
• Making sure a Notice of Commencement is filled out correctly and posted at the site.
• Getting a Notice of Furnishing from each person or company providing labor or materials.
• Demanding a sworn statement for any payment made to a contractor.  Check the list of subcontractors and suppliers against the Notice of Furnishing to see that subcontractors are getting paid.
• Upon getting the sworn statement, pay the contractor directly or, with five days are written notice to the contractor, pay subcontractors, suppliers or laborers directly.
• When making a payment, ask for a Waiver of Lien.

For more information, visit Michigan’s Department of Energy, Labor & Economic Growth.
Source:  Michigan Department of Consumer and Industry Services.