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Contractor License in Michigan

State license

Michigan requires a state Residential Builder license (or Maintenance & Alteration Contractor license for specialty trades) issued by the Bureau of Construction Codes within the Department of Licensing and Regulatory Affairs (LARA) for anyone who builds or contracts residential structures. Commercial general contracting is generally not licensed at the state level.

Quick facts

When a license is neededA Residential Builder license is required to contract for building, remodeling, or improving residential structures; a Maintenance & Alteration Contractor license covers specific specialty trades rather than whole-structure building.
ExperienceNo fixed years-of-experience requirement, but applicants must complete 60 hours of approved prelicensure education (a portion of which can be offset by documented experience).
ExamYes. A two-part exam administered by PSI covering Business & Law and Practice/Trade; the Residential Builder exam has 160 questions (about 50 Business & Law, 110 trade).
InsuranceGeneral liability insurance with a minimum of $100,000 per occurrence is required at application and renewal; workers' compensation required if you have employees.
FeesApplication fee reported at $195 (some sources cite $135; confirm current amount with LARA). Renewal is $185 per 3-year cycle with a $20 late fee during the grace period. Exam fees are paid separately to PSI.
RenewalLicense term is 3 years. Continuing competency is required each cycle (21 hours if licensed under 6 years, 3 hours if licensed 6+ years).
ReciprocityLimited; verify current arrangements directly with LARA.
Main agencyMichigan LARA, Bureau of Construction Codes
Official sitehttps://www.michigan.gov/lara/bureau-list/bcc/sections/licensing-section/residential-builders
Requirements, thresholds, and fees change, and local rules can be stricter than the state. Always confirm directly with the board and your local building department before you bid or pull a permit. This page is a starting point, not legal advice.
Apply / official Michigan board →

License classifications

How to get licensed in Michigan

  1. Complete the 60-hour LARA-approved residential builder prelicensure education.
  2. Submit the Residential Builder license application with the required fee to LARA.
  3. Receive the authorization-to-test letter from LARA.
  4. Schedule and pass the two-part PSI exam (Business & Law and Practice/Trade).
  5. Provide proof of general liability insurance (minimum $100,000 per occurrence).
  6. Receive your license (3-year term) and complete continuing competency each renewal cycle.

Frequently asked questions

Who needs a Michigan residential builder license?

Anyone who contracts to build, remodel, or improve residential structures for others. Specialty tradespeople may instead need a Maintenance & Alteration Contractor license in their specific trade categories.

Do I need a state license for commercial general contracting?

Michigan does not issue a statewide commercial general contractor license; the state credential is for residential building. Local permits and specialty trade licenses still apply.

Is a surety bond required?

The state does not require a general surety bond for the Residential Builder license itself. General liability insurance of at least $100,000 per occurrence is required.

How often do I renew?

Every 3 years, with continuing competency education required each cycle.

Who administers the exam?

PSI administers the closed-book Residential Builder exam at approved testing centers after LARA approves your application.

Sources

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Guide compiled from official Michigan licensing-board sources. Verify current details with the board before acting; licensing rules change.