Michigan Contractor License Requirements: Complete 2026 Guide

Michigan takes contractor licensing seriously. The state requires anyone performing residential construction, renovation, or repair work valued at $600 or more (labor and materials combined) to hold a license issued by the Michigan Department of Licensing and Regulatory Affairs (LARA), specifically through its Bureau of Construction Codes (BCC). This applies to general contractors, remodelers, roofers, siding installers, and most other trades working on residential structures.

Michigan offers two primary license types for residential work: the Residential Builder license and the Maintenance & Alteration Contractor license. Both require prelicensure education, passing a PSI-administered exam, and submitting a formal application to LARA. The licensing framework is governed by Article 24 of the Michigan Occupational Code (MCL 339.2401 et seq.).

This guide covers everything you need to know: license types, requirements, fees, the exam process, renewal and continuing education, insurance obligations, penalties for unlicensed work, and how to verify a contractor's license in Michigan.

Types of Contractor Licenses in Michigan

Michigan's residential contractor licensing system operates at the state level through LARA. There are two main license categories for residential work, plus separate licensing tracks for specialty trades.

Residential Builder License

The Residential Builder (RB) license is Michigan's equivalent of a general contractor license for residential work. It authorizes you to perform or supervise the construction, renovation, repair, demolition, or addition of residential structures, including single-family homes and townhouses. Residential builders can act as general contractors, managing subcontractors and overseeing entire projects.

This license covers a broad scope of work, but there are limits. A residential builder must subcontract any electrical, plumbing, or mechanical (HVAC) work to contractors holding those separate specialty licenses.

Maintenance & Alteration (M&A) Contractor License

The M&A Contractor license is a more limited license that covers repair, alteration, improvement, and demolition of existing residential structures. Unlike the Residential Builder license, it does not authorize new construction.

When applying, you select from 12 trade categories that define your authorized scope of work:

• Carpentry
• Concrete
• Swimming pool installation
• Basement waterproofing
• Excavation
• Insulation
• Masonry
• Roofing
• Siding and gutters
• Screen and storm sash
• Tile and marble
• House wrecking/demolition

You can select multiple trade categories on a single license.

Specialty Trade Licenses (Separate from Builder Licensing)

Michigan requires separate licenses for certain specialty trades, administered through different sections of LARA's Bureau of Construction Codes:

• Electrical: Master Electrician License and Electrical Contractor License
• Plumbing: Master Plumber License and Plumbing Contractor License
• Mechanical/HVAC: Mechanical Contractor License
• Boiler: Boiler Contractor License
• Elevator: Elevator Contractor License

Each specialty trade has its own exam, education, and experience requirements. This guide focuses on the Residential Builder and M&A Contractor licenses.

Company (Entity) Licenses

If you operate as a corporation, LLC, or partnership, your business entity needs its own Company Residential Builder License. The company must designate a qualifying officer — an officer, partner, member, or managing agent who holds an active individual builder license. That qualifying officer is responsible for ensuring the company's construction operations comply with state law. If the qualifying officer leaves the company, the company license is suspended until a new one is designated.

Licensing Requirements

Basic Eligibility

• At least 18 years old
• Hold a valid Michigan driver's license or state identification card
• Demonstrate good moral character
• Maintain a place of business in Michigan (a P.O. Box is not sufficient). Non-Michigan residents must submit a Consent to Service of Process.

Prelicensure Education (60 Hours)

Before you can sit for the exam or submit a license application, you must complete 60 hours of approved prelicensure education through a program on LARA's approved course list. This requirement has been in effect since June 1, 2008.

The 60 hours must include a minimum of 6 hours in each of these seven mandatory subject areas:

1. Business Management, Estimating, and Job Costing
2. Design and Building Science
3. Contracts, Liability, and Risk Management
4. Marketing and Sales
5. Project Management and Scheduling
6. Michigan Residential Code
7. MIOSHA Construction Safety Standards

The remaining 18 hours can be selected from LARA's approved elective courses. Prelicensure courses typically cost between $300 and $450 depending on the provider.

Experience Requirements

Michigan does not impose a specific number of years of field experience as a prerequisite for licensing. The 60-hour prelicensure education and the PSI exam serve as the primary competency gatekeepers. However, the exam is rigorous enough that practical construction knowledge is effectively necessary to pass.

Background Check

Applicants must demonstrate good moral character. LARA may review criminal history as part of the application evaluation. A criminal record does not automatically disqualify you, but serious offenses, particularly those related to fraud, theft, or construction-related violations, may result in denial.

Application Process

Follow these steps to obtain your Michigan Residential Builder or M&A Contractor license:

Step 1: Complete Prelicensure Education

Finish all 60 hours of approved coursework. Your education provider will report completion to LARA. Keep your certificate of completion for your records.

Step 2: Schedule and Pass the PSI Exam

Register for the exam through PSI Services. You must pass both parts of the exam (see Examination Requirements below). You have one year from your passing date to submit your license application.

Step 3: Submit Your Application

Complete and submit the Individual Residential Builder or M&A Contractor License Application along with:

• A copy of your Michigan driver's license or state ID
• The $195 application fee (check or money order payable to the State of Michigan)
• Proof of prelicensure education completion
• Workers' compensation insurance certificate (if applicable)
• Consent to Service of Process (for out-of-state applicants)

Mail applications with payment to:
LARA/BCC/Licensing Section
P.O. Box 30255
Lansing, MI 48909

Mail applications without payment to:
LARA/BCC/Licensing Section
P.O. Box 30254
Lansing, MI 48909

You can also submit applications online through the LARA Accela portal.

Step 4: Receive Your License

LARA will review your application and issue your license once all requirements are verified. Processing times vary, but you should allow several weeks for review.

Examination Requirements

Michigan's builder licensing exams are administered by PSI Services LLC. The exams are entirely closed-book — no reference materials are allowed in the testing center.

Residential Builder Exam

The Residential Builder exam consists of two parts taken in a single session:

You must pass both parts and apply for your license within one year of your passing date.

Maintenance & Alteration Contractor Exam

The M&A Contractor exam includes the same Part 1 (Business & Law) section as the Residential Builder exam, plus a separate trade-specific section for each trade category you select on your application.

Exam Fees

• First time, both parts: $99
• First time, one part only: $70
• First time, three parts: $114

Exam fees are paid directly to PSI at the time of scheduling. You can register and schedule online at psiexams.com.

Retaking the Exam

If you fail one or both parts, you can reschedule for a retest. There is no mandatory waiting period, but you must pay the applicable exam fee again for each attempt.

Study Resources

Several LARA-approved providers offer exam prep courses in addition to the required 60-hour prelicensure education. The exam covers Michigan Residential Code, MIOSHA safety standards, construction law, and practical trade knowledge. Your prelicensure coursework should prepare you for most of the content.

License Fees and Costs

Here is a breakdown of all costs associated with obtaining and maintaining a Michigan builder license:

Total estimated cost for initial licensure: approximately $600 to $750, including education, exam, and application fees.

Veteran exemption: Honorably discharged veterans may substitute DD Form 214 or 215 in lieu of the licensing fee.

Insurance and Bond Requirements

Workers' Compensation Insurance

Michigan law requires workers' compensation coverage if you:

• Regularly employ one or more workers for 35 or more hours per week for at least 13 weeks during the preceding 52 weeks
• Employ three or more workers at any one time, regardless of hours
• Use subcontractors who do not carry their own workers' compensation coverage

If you use subcontractors, you may need a workers' compensation policy even if you have no direct employees, as uninsured subcontractors can be deemed your employees under Michigan law.

General Liability Insurance

General liability insurance is not explicitly mandated by the licensing statute, but operating without it is extremely risky. A single injury on a job site or a structural defect claim can devastate a small building business. Most Michigan builders carry at least $500,000 to $1,000,000 in general liability coverage, and many clients and general contractors require proof of coverage before awarding contracts.

Surety Bond

Michigan's state-level builder licensing does not currently require a surety bond. However, some local municipalities do require a contractor license bond for permitted work. For example, certain jurisdictions in Oakland County and St. Clair Shores require bonds. Always check with the local building department where you plan to work.

License Renewal and Continuing Education

Renewal Cycle

Michigan residential builder and M&A contractor licenses expire every three years on May 31. LARA sends renewal notices, but it is ultimately your responsibility to renew on time.

Continuing Education Requirements

Continuing education (CE) requirements differ based on how long you have held your license:

Licensed After January 1, 2009 (First 6 Years)

During your first two three-year renewal cycles, you must complete 21 hours of continuing competency per cycle, with a minimum of 3 hours per calendar year. The 21 hours must include:

• At least 1 hour on building code updates
• At least 1 hour on safety/MIOSHA updates
• At least 1 hour on legal/regulatory changes
• Remaining hours from approved elective topics

Licensed 6+ Years (or Licensed Before January 1, 2009 with Clean Record)

After completing your first six years of licensure, the CE requirement drops to 3 hours per three-year cycle:

• 1 hour on building code updates
• 1 hour on safety/MIOSHA updates
• 1 hour on legal/regulatory changes

Licensees with disciplinary actions on their record may be required to complete additional CE hours as determined by LARA.

Renewal Fees and Late Penalties

• On-time renewal: $150
• Late renewal (within 60 days of expiration): $150 + $20 late fee

Renewals can be submitted online through the LARA Accela portal.

Expired License: Relicensure and Reinstatement

61 days to 3 years after expiration: You can apply for relicensure without retaking the exam. The relicensure fee is $185, plus any applicable late fees and per-year license fees. You must also complete any outstanding CE requirements.

More than 3 years after expiration: You may be required to pass all or part of the licensing exam again, complete current education requirements, and meet any other requirements established by LARA. Contact LARA directly for guidance.

Important: If your license is expired, you cannot legally perform residential construction or maintenance work in Michigan until it is reinstated.

Reciprocity with Other States

Michigan does not currently participate in the NASCLA (National Association of State Contractors Licensing Agencies) accredited examination program for commercial general building contractors. Michigan is also not part of any formal reciprocity agreements with other states for residential builder licensing.

If you hold a contractor license in another state and want to work in Michigan, you must meet all of Michigan's requirements independently: complete the 60-hour prelicensure education, pass the PSI exam, and submit a full application to LARA. Your out-of-state experience may help you pass the exam, but it does not waive any requirements.

Non-Michigan residents can apply for a license but must submit a Consent to Service of Process form and maintain a place of business in Michigan (a P.O. Box is not acceptable).

How to Verify a Contractor's License

Michigan makes it easy to verify whether a contractor is properly licensed. LARA provides free online lookup tools:

• LARA License Verification: val.apps.lara.state.mi.us — Search by name, business name, or license number. Results show license type, status, effective and expiration dates, and any complaints or disciplinary actions.
• Accela Citizen Access: LARA Accela Portal — An alternative lookup tool with daily-updated records.

When verifying a contractor, confirm that:

• The license status is active
• The license type matches the work being performed (Residential Builder vs. M&A Contractor)
• The license has not expired
• There are no unresolved complaints or disciplinary actions

LARA Contact Information

Penalties for Working Without a License

Michigan imposes some of the harshest penalties in the country for unlicensed residential construction work. Under MCL 339.601, the penalties are specifically enhanced for residential builders and M&A contractors:

Criminal Penalties

Civil Penalties

In addition to criminal penalties, a prosecuting attorney or the Michigan Attorney General may bring a civil action against an unlicensed person. Courts can assess civil fines of $5,000 to $25,000, separate from any criminal penalties, plus civil damages and restitution to affected homeowners.

Contract Unenforceability

Perhaps the most significant practical consequence: if you perform work without a license, your construction contracts may be unenforceable under Michigan law. This means you could complete a job and have no legal recourse to collect payment. The Michigan Supreme Court has reinforced this principle, underscoring the importance of maintaining proper licensure.

Complaint Process

Homeowners can file complaints against contractors (licensed or unlicensed) with LARA's Bureau of Construction Codes. The contractor receives 15 days to respond. LARA investigates, and serious violations are referred to the Attorney General's office for formal administrative hearings. Outcomes range from fines to license suspension or revocation.

Frequently Asked Questions

Do I need a license for work under $600?

No. Michigan exempts projects where the total contract price for labor, materials, and all other items on a single project is less than $600. However, you cannot split a larger project into multiple sub-$600 contracts to evade the licensing requirement. That is explicitly prohibited under the statute.

Can I work as a subcontractor without a license?

Yes. Michigan exempts individuals who work solely as subcontractors under a licensed residential builder. The licensed builder assumes responsibility for the subcontractor's work. However, if you contract directly with a homeowner, you need your own license.

What is the difference between a Residential Builder and an M&A Contractor license?

A Residential Builder license authorizes you to build new residential structures and perform renovations, repairs, additions, and demolition. An M&A Contractor license only covers work on existing structures — no new construction. The M&A license is limited to the specific trade categories you select on your application.

Can I build my own home without a license?

Yes. Michigan exempts homeowners who build or renovate their own property for personal use. You also do not need a license to maintain your own rental property. However, you still must obtain the required building permits and pass inspections.

How long does it take to get licensed?

The prelicensure education (60 hours) can typically be completed in 2 to 4 weeks through an intensive program or at your own pace over several months. Once you pass the PSI exam and submit your application, LARA processing takes several weeks. Plan for a total timeline of approximately 2 to 3 months from start to finish.

Do veterans get any licensing benefits?

Yes. Honorably discharged veterans can substitute DD Form 214 or 215 in lieu of paying the licensing fee, providing a cost savings on the initial application.

Conclusion

Michigan's contractor licensing requirements are straightforward but thorough. Complete 60 hours of prelicensure education, pass the PSI exam, submit your application with the $195 fee, and maintain your license with continuing education and timely renewals every three years. The penalties for working without a license are severe — fines up to $25,000, potential jail time, and unenforceable contracts — so staying properly licensed is not optional.

For the most current information, contact LARA directly at 517-241-9316 or visit the LARA Residential Builders page. You can also email LARA-BCC-Licensing@michigan.gov with specific questions about your application.

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