How to get a residential builder license in Michigan

Licensing office Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes · 517-241-9316 [1][2]

The license pathway in Michigan

1. 1

   Maintenance & Alteration Contractor

   • 60 hours of approved prelicensure courses
   • Yes: Maintenance & Alteration Contractor exam, PSI
   • $15 application processing; $50 per year license fee; exam fee paid to PSI
   • Every 3 years, with continuing competency hours

   Lets you do repair and remodeling work in the specific trades printed on your license, such as carpentry, concrete, roofing, siding, masonry, insulation, tile, excavation, basement waterproofing or swimming pools. [2][3][7][9]

2. 2

   Residential Builder

   • 60 hours of approved prelicensure courses
   • Yes: Residential Builder exam, PSI
   • $15 application processing; $50 per year license fee; exam fee paid to PSI
   • Every 3 years, with continuing competency hours

   Michigan's general contractor license for homes. It covers building, altering, repairing, adding to or demolishing a residential structure for pay. The law defines that as a detached 1- or 2-family home or a townhouse of up to 3 stories. [2][3][4][9]

Who needs a builder license in Michigan

Michigan's license law (Article 24 of the Occupational Code) covers residential builders and residential maintenance & alteration contractors. You need a license if you're paid, other than wages for your own labor, to build, repair, alter, add to, improve or demolish a residential structure. The law defines a residential structure as a detached 1- or 2-family home, or a townhouse of not more than 3 stories, along with related facilities.

Common exemptions:

• Small jobs: a project whose total price for labor and materials is under $600. You can't split a bigger job into smaller contracts to get under that line.
• Your own home: work on property you own for your own use.
• Subcontractors: people working only under contract to a licensed builder or M&A contractor.
• Licensed trades: electrical, plumbing and mechanical contractors, for work within their own licenses.

Working without a required license has teeth: you can't sue to collect payment or put a lien on the property. A court can also fine you $5,000 to $25,000. [1][4][5][6]

What about commercial work?

Article 24 licenses residential builders and residential maintenance & alteration contractors. LARA describes it as covering a "residential structure or combination residential and commercial structure." The definitions in the law don't create a separate state license for commercial general contractors.

If your work is commercial only, confirm with LARA's Licensing Section at 517-241-9316 and with the local building department whether you need a license. Electrical, plumbing and mechanical contractors are licensed separately, under Michigan's Skilled Trades Regulation Act. [1][2][4][5]

Builder vs. maintenance & alteration contractor

The residential builder license covers whole residential projects, from new homes to additions and remodels.

The maintenance & alteration (M&A) contractor license is limited to the trades printed on your license. LARA lists these trades: carpentry, concrete, excavation, insulation, masonry, siding, roofing, screens and storm sash, gutters, tile and marble, house wrecking, swimming pools and basement waterproofing.

Under the law, an M&A contractor can take on work in another trade only when it is "incidental and supplemental" to the licensed trade. [3][4][7]

The 60-hour prelicensure course

Since June 1, 2008, new applicants must complete 60 hours of approved prelicensure education before taking the exam or applying. You need at least 6 hours in each of these subjects:

• Business management, estimating and job costing
• Design and building science
• Contracts, liability and risk management
• Marketing and sales
• Project management and scheduling
• The Michigan Residential Code
• MIOSHA (Michigan Occupational Safety and Health Administration) construction safety standards (MIOSHA is Michigan's workplace safety agency)

The remaining 18 hours can come from other topics on LARA's approved course list. Only courses on the Approved Prelicensure Education Course List count. [2][8]

The exam

PSI runs the Residential Builder and M&A Contractor exams. After LARA approves your application, PSI contacts you to schedule at one of five Michigan testing centers. Testing is available six days a week, and you choose the center and day. You pay the exam fee directly to PSI when you schedule. Since June 1, 2008, the state no longer takes exam fees.

By law, the exam tests whether you have "a fair knowledge of the obligations" of a builder or contractor to the public and to clients, and of the laws covering your license. [2][3]

Fees, renewal and continuing education

Michigan's license fee law sets a $15 application processing fee and a license fee of $50 per year for residential builders and M&A contractors. Licenses are issued for 3 years. Check LARA's application for the amount due when you apply.

Continuing competency (Michigan's term for continuing education) depends on when you were first licensed. If you were first licensed on or after January 1, 2009:

• complete at least 21 hours in each 3-year cycle,
• including at least 3 hours every calendar year during your first 6 years, and
• at least 3 hours on codes, laws, safety and business law changes.

Licensees with more than two cycles and no discipline need 3 hours per cycle (1 hour each of codes, safety and legal issues). Keep proof for 5 years. At renewal, you also state that you own a current copy of the Michigan Residential Code. [3][8][9]

Veterans and military applicants

If you served in the Armed Forces, you can skip the 60-hour prelicensure requirement when all of these apply:

• you did construction, repair, alteration or demolition work while serving,
• you were separated with an honorable or general (under honorable conditions) character of service, shown on a DD214 (military discharge papers), DD215 (the form that corrects a DD-214) or similar form, and
• you include an affidavit from a commanding officer, supervisor or military superior. It must say you have entry-level experience in, or basic knowledge of, each of the required subject areas.

If your affidavit covers only some of the subject areas, LARA may give you partial credit toward the 60 hours. If you use this exemption and fail the exam on your first try, you must complete the prelicensure courses before you can retake it. See LARA's page for armed forces applicants. [8][10]

If you're licensed in another state

LARA's residential builder pages list no reciprocity agreement with another state for this license. Plan on completing Michigan's prelicensure courses and exam, unless LARA tells you an exemption applies to you. The law also requires a licensed builder or M&A contractor to "maintain a place of business in this state." [1][2][3]

Steps to get licensed in Michigan

1. Choose builder or M&A contractor

   Pick the residential builder license for general residential work, or the maintenance & alteration license for one or more specific trades. [3][7]

2. Complete 60 hours of prelicensure courses

   Take courses from LARA's Approved Prelicensure Education Course List, with at least 6 hours in each required subject. You must finish them before you apply or test. [2]

3. Apply to LARA

   Submit your application and fee through LARA's online system. You must be of good moral character and send a copy of your driver's license or state ID. [1][2][3]

4. Pass the PSI exam

   Once you're approved, PSI contacts you to schedule the Residential Builder or M&A Contractor exam at one of its 5 Michigan testing centers. You pay the exam fee to PSI. [2]

5. Keep up continuing competency

   Your license runs 3 years. When you renew, you state that you have a current copy of the Michigan Residential Code and have met the continuing competency rules. [3][8]

Where to get the hours

Programs that train general contractors in or for Michigan, from their own official pages. Listed by type, not ranked.

• School

  Approved prelicensure courses (community colleges, trade associations, schools)

  The required 60 hours can be taken from a high school, intermediate school district, community college, university, trade association or licensed proprietary school with LARA-approved courses. [2][8]

• State program

  Registered apprenticeships (Apprenticeship.gov finder)

  The U.S. Department of Labor's Apprenticeship Finder lists open apprenticeship jobs, including carpentry and construction, that you apply for directly with the employer. [12]

• Union

  Carpenters union (UBC) training centers

  The United Brotherhood of Carpenters' regional and local training centers run apprentice classes. Use their locator to find the one nearest you. [13]

Licensed in another state?

Questions people ask