How to Choose a Restoration Contractor in Southeast Michigan

Why This Decision Shapes Everything That Follows

When fire, flood, or storm damage hits a home in Southeast Michigan, the insurance claim process begins immediately — and so does the pressure to make decisions fast. Contractors arrive within hours. Adjusters schedule inspections. Mortgage companies weigh in on estimates. All of this happens while a homeowner is still absorbing what happened.

The choice of restoration contractor is one of the most consequential decisions in that process. It affects the scope of the rebuild, the outcome of the claim, and the total time before life returns to normal. Made without a framework, it is often made badly.

This guide is a practical tool for making that decision with information. It covers the two primary contractor models operating in the SE Michigan market, a seven-criteria evaluation framework, specific questions to ask any contractor before signing, and a direct assessment of how Phase III Construction approaches each criterion.

It is worth saying plainly: this guide exists to help homeowners make the right choice for their situation — even if that choice is not Phase III. A national franchise may genuinely serve certain losses better. The goal of this page is to give homeowners the tools to know the difference.

Phase III Construction has operated in Southeast Michigan since 1993. Current ownership is Kyle Hagerty and Ron Kowalski as equal partners. This guide reflects their approach and is offered as a resource for any homeowner navigating an insurance restoration claim.

The Two Models in Restoration Contracting

Insurance restoration contracting in the United States operates through two fundamentally different business models. Understanding the structure of each is the starting point for making a sound hiring decision.

Model A: National Franchise and Corporate Networks

Companies like Belfor, ServPro, Paul Davis, ServiceMaster, and 911 Restoration operate through national franchise or corporate network structures. Individual locations are operated by franchisees or regional managers under a national brand umbrella.

This model carries real advantages in certain situations. National brand recognition creates immediate trust signals. Large operations can mobilize equipment and crews quickly for major disasters. Franchises that are pre-approved by insurance carriers — known as Preferred Vendor Programs, or PVPs — can receive faster initial dispatch from those carriers.

The structural tradeoff: PVP participation typically involves pricing agreements with insurance carriers, which means the contractor’s financial relationship is partially aligned with the insurer rather than exclusively with the homeowner. This is not a moral judgment — it is a business model. Homeowners working with PVP-listed contractors should understand that the contractor was vetted and approved by the insurance company, not selected independently.

National franchise quality also varies significantly by location. The performance of any ServPro or Paul Davis franchise depends heavily on the individual owner-operator — their crews, their management, and their claims experience in your specific market.

Model B: Local Owner-Operated Restoration Contractors

The alternative is a locally owned and operated company whose principals are directly involved in day-to-day operations. These companies are not affiliated with national franchise networks and do not participate in carrier PVP agreements.

Phase III Construction operates this way. Kyle Hagerty and Ron Kowalski are on-site for fire losses and major storm claims. There is no regional manager between the homeowner and the people making decisions about the scope, the claim, and the work.

Owner-operated contractors live and work in the same market they serve. They are not rotating crews between disaster regions; they are working in the same ZIP codes year after year, building long-term relationships with local adjusters, building inspectors, and subcontractors.

The honest tradeoff: a local owner-operated company cannot mobilize hundreds of crews for a catastrophic regional event the way a national network can. For single-property residential losses — which represent the vast majority of water, fire, and storm restoration work — this limitation rarely affects the homeowner.

Neither model is universally better. The right choice depends on the type of loss, the homeowner’s priorities, and what they are willing to trade. The seven-criteria framework in the next section is designed to surface that answer.

A 7-Criteria Framework for Evaluating Any Contractor

Evaluating a restoration contractor before a loss is difficult. Evaluating one in the aftermath — under time pressure, with adjusters already scheduling and neighbors recommending names — is harder. The seven criteria below create a consistent filter regardless of when the decision gets made.

Criterion 1: Who Is Physically On-Site?

The most useful question is also the most overlooked: who actually shows up? In large national franchise operations, the person who comes for the initial inspection may be a sales representative, not a project manager or tradesperson. The construction work itself may be performed by rotating crews, local subcontractors, or both — none of whom were present during the sales conversation.

Ask specifically who will be present during the inspection, during the adjuster’s scope walk, and during active construction. The answer reveals how much accountability is concentrated in any one person.

Criterion 2: Are They a Licensed Michigan General Contractor?

In Michigan, any contractor performing structural repair work is required to hold a valid General Contractor or Maintenance and Alteration Contractor license issued by the Michigan Department of Licensing and Regulatory Affairs (LARA). Verify the license number at michigan.gov/lara before signing anything.

An unlicensed contractor provides no regulatory protection and can void insurance coverage in some cases. This is a non-negotiable baseline, not a differentiator.

Criterion 3: Which Side of the Claim Are They On?

Restoration contractors can operate from two different financial relationships with insurance carriers. Preferred Vendor Program (PVP) contractors have pre-negotiated pricing agreements with specific carriers. Carrier-independent contractors do not.

PVP participation prioritizes speed and ease of dispatch. Carrier-independent status allows the contractor to advocate for full scope without pricing constraints built into a carrier agreement. Neither arrangement is inherently dishonest — they represent different business structures with different financial alignment. Homeowners should know which one they are dealing with before signing.

Criterion 4: How Do They Handle Insurance Claim Supplements?

Insurance adjusters frequently underscope initial estimates — particularly for fire, water, or structural damage with hidden components. A supplement is the process of returning to the carrier with documented evidence of additional scope and requesting revised payment.

Some contractors accept the initial estimate as the working budget and build to it. Others actively supplement — documenting missed scope items, submitting revised estimates, and negotiating until the approved scope reflects actual damage. The difference in claim outcomes between these two approaches can be significant.

Ask directly: what is the contractor’s process when the adjuster’s estimate does not cover the full scope of damage?

Criterion 5: What Licenses and Certifications Do They Hold — and Which Are Legally Required?

Michigan GC licensure through LARA is the legally controlling credential for structural restoration work in this state. It establishes the contractor’s legal authority to perform the work, satisfies insurance carrier requirements, and provides regulatory recourse if something goes wrong.

Industry certifications — such as those offered by the Institute of Inspection, Cleaning and Restoration Certification (IICRC) — are common in some restoration trades, particularly mitigation and contents work, but are not state-required for structural restoration in Michigan. They represent additional training and are worth noting, but they do not substitute for a valid Michigan GC license and should not be evaluated as if they do.

Ask for the GC license number. Verify it independently.

Criterion 6: How Long Have They Been Operating in Your Specific Market?

A national franchise brand’s 30-year history tells you nothing about a franchisee who opened their location two years ago. Look for demonstrated longevity in your county — not just the parent company’s founding date.

An established local contractor has an auditable history in your area: permit records, adjuster relationships, and prior claim outcomes in the same jurisdiction where your home is being repaired.

Criterion 7: How Is Payment Structured — and What Does Signing Mean?

Three structures are common in residential restoration. An Assignment of Benefits (AOB) transfers your insurance rights to the contractor. A Direction to Pay authorizes the contractor to invoice the carrier directly while you retain your claim rights. Carrier-direct payment routes checks through the homeowner, who pays the contractor per contract.

Each structure carries different risk profiles and different implications for how disputes get resolved. Ask what structure the contractor uses, and why.

Questions to Ask Any Contractor Before You Sign

These questions apply to any restoration contractor, including Phase III Construction. A contractor who cannot answer them clearly — or who becomes evasive when asked — is providing information regardless of what they say.

1. Can you provide your Michigan GC license number so I can verify it directly with LARA? A contractor who hesitates has a licensing problem.
2. Who specifically will be on-site during the adjuster’s scope walk — and will that same person serve as project lead through completion? Sales representative and project lead are often different people.
3. Walk me through what happens if the adjuster’s initial estimate does not cover the full scope of damage. Who writes the supplement, how is it documented, and how does it get submitted to the carrier? You are looking for a specific process, not a reassurance.
4. How many insurance restoration claims have your crews handled in Wayne, Oakland, Washtenaw, or Livingston County specifically in the past three years? General restoration experience and SE Michigan insurance restoration experience are not interchangeable.
5. Are your field crews W-2 employees or 1099 subcontractors — and who is the on-site project lead day-to-day? Know who is actually working on your home and who is responsible for their work.
6. Can you provide references from homeowners who completed a similar claim — same damage type, same insurance process — in my county in the past two years? Remodeling references do not translate to insurance claim experience.
7. Will you provide a written scope of work that aligns with the insurance estimate before any construction begins? Verbal scopes become contract disputes.
8. Can you provide a current certificate of insurance covering general liability and workers’ compensation? If they cannot produce it within 24 hours, assume they do not have it.
9. Does your contract include an Assignment of Benefits clause, and if so, what specifically are you asking me to transfer? Understand what you are signing before you sign it.
10. What is your written warranty — does it cover labor, materials, or both, and for what duration? A warranty without written terms is not a warranty.
11. Are you participating in a Preferred Vendor Program with my insurance carrier on this claim? The answer clarifies whose financial interests the contractor’s structure is aligned with.
12. Who is my direct point of contact during construction, and how often will you proactively communicate status?

Industry Red Flags to Watch For

The following patterns should prompt serious scrutiny with any contractor — national or local, licensed or not. No company structure is immune to these behaviors.

Soliciting work before the loss scene is safe or the claim is documented. Contractors who appear at a fire or major storm loss within hours — before the structure has been released by the fire marshal, before the homeowner has had an opportunity to document conditions, or before a claim has been filed — are prioritizing their own access over the homeowner’s interests. Speed of arrival is not a quality signal.

Requesting a large upfront payment before work begins. Legitimate restoration contractors invoice against a documented payment schedule tied to completed work phases and insurance disbursements. A request for a large lump-sum payment upfront — particularly in cash — is not standard industry practice.

Refusing to provide a written scope before construction starts. A contractor who wants to begin work before a written, line-item scope is in hand is removing the document that protects both parties. If the scope is not in writing, it does not exist as a binding commitment.

Pressure to sign documents at the loss scene, same day. This includes Assignment of Benefits agreements, authorization forms with unusual clauses, and contracts signed before the carrier has been notified and the damage has been formally documented. There is rarely a legitimate reason to require a homeowner’s signature before a claim is open and an initial scope is known.

Cannot explain the supplement process — or dismisses it. A contractor who cannot walk through, specifically, how they respond when an adjuster underestimates damage is a contractor who does not supplement. That means the adjuster’s opening estimate becomes the ceiling, not the floor.

No verifiable Michigan GC license. This is checkable at michigan.gov/lara in under two minutes. Any hesitation to provide the license number — or a license that does not verify correctly — is disqualifying.

Offers to waive or absorb the deductible. This is insurance fraud under Michigan law. It is not a discount. The contractor who offers it and the homeowner who accepts it both participate in the violation.

Requires cash payment or discourages involving the insurance carrier. Insurance claims produce a documented paper trail. Contractors who prefer to operate outside that structure merit closer examination.

No verifiable physical office in the service area. A contractor without a local business address operates without accountability to the community where they are working.

How Phase III Construction Answers Each Criterion

The seven criteria above represent the framework. Below is Phase III Construction’s answer to each one.

Criterion 1: Who Is On-Site?

Kyle Hagerty and Ron Kowalski — the two equal partners of Phase III Construction — are on-site for fire losses and major storm claims. The person at the initial inspection and the person making scope decisions during active construction are the same people who own and operate the company. When the adjuster arrives for the scope walk, the person on site has full technical and financial context for the claim. When a coverage issue arises mid-project, the person who can resolve it is directly accessible — not insulated behind account management. You can review Phase III’s work history at Our Work.

Criterion 2: Michigan GC Licensure

Phase III holds Michigan General Contractor License #262000615. It is current, verifiable at michigan.gov/lara, and has been held continuously since Phase III began operating in Southeast Michigan in 1993. The Phase III story is one market, three decades, and the same license.

Criterion 3: Carrier Relationships

Phase III does not participate in any insurance carrier’s Preferred Vendor Program. The company operates exclusively as the homeowner’s contractor — not pre-approved, not pre-priced by any carrier. There is no pricing agreement with any insurance company that constrains what Phase III documents or advocates for.

Criterion 4: Handling Claim Supplements

Active supplementing is Phase III’s standard practice, not an exception process. Phase III has handled more than a thousand insurance restoration claims in Southeast Michigan, with millions recovered for SE Michigan homeowners beyond what initial adjuster estimates authorized.

When an adjuster’s initial scope misses damage — hidden structural issues beneath finished surfaces, code-required upgrades triggered by the loss, or line items specific to the property’s construction — Phase III documents the gap. That means additional site documentation, Xactimate line-item preparation, and direct communication with the adjuster through the supplemental review process. The goal is a final approved scope that reflects actual conditions, not the adjuster’s opening estimate.

Criterion 5: Licensing and Credentials

Michigan GC License #262000615 is the legally controlling credential for structural restoration in this state. Phase III has held it since 1993. It covers the structural scope of every restoration — framing, roofing, siding, drywall, finish work. It is the credential that governs this category of work.

Criterion 6: Market Tenure

Phase III was founded in Southeast Michigan in 1993. Current ownership is Kyle Hagerty and Ron Kowalski as equal partners. The company’s work history — permits, claim resolutions, subcontractor relationships — exists in the same four counties where every job is performed: Wayne, Oakland, Washtenaw, and Livingston. Decades of insurance restoration experience in a single market produces operational knowledge that a national brand’s aggregated history does not replicate locally.

Criterion 7: Payment Structure

Phase III uses a Direction-to-Pay model. The homeowner authorizes Phase III to invoice the insurance carrier directly; payment routes accordingly per the approved estimate. The homeowner retains their insurance claim rights throughout. Phase III does not use Assignment of Benefits agreements as a standard contract term.

These approaches work well for most Southeast Michigan residential restoration claims — but not every loss fits that profile, and homeowners navigating different circumstances deserve a direct answer about where to look instead.

When Phase III Is Not the Right Choice

Phase III is not the right fit for every loss. Three situations where a different path makes more sense:

Large commercial losses or multi-property corporate damage. Phase III is a residential and light-commercial restoration contractor focused on SE Michigan homeowners. A large commercial fire, multi-building complex loss, or corporate campus event is a different category of work — one that requires mobilization capacity and project management infrastructure that national franchise networks are structured to provide. For those losses, a contractor with that scale is genuinely a better fit.

Homeowners who specifically want carrier-dispatched service and accept the tradeoff. Some homeowners want the insurance company’s contractor on site as quickly as possible and are willing to accept the financial alignment that comes with PVP participation in exchange for speed. That is a legitimate choice, made with full information. For those homeowners, contacting the carrier directly for a PVP referral will get them to that contractor faster than Phase III will.

Losses outside the Phase III service area. Phase III operates in Wayne, Oakland, Washtenaw, and Livingston counties. For losses in Macomb County, Monroe County, or elsewhere in Michigan, Phase III is not in a position to service the job at the standard it holds for SE Michigan work. For those losses, a LARA license search filtered by trade and county, or a referral through a public adjuster, are reasonable starting points for finding a qualified local contractor.

Phase III’s goal in this section is a simple one: every homeowner should make this choice with full information, including information about what Phase III is and is not.

Frequently Asked Questions