Licensing Guides
State Contractor License: How to Become a General Contractor in Michigan
Contractor, MI
Table of Contents
Why Do You Need a Contractor License in Michigan?
How Can You Get a Contractor License in Michigan?
Types of General Contractor Licenses in Michigan
What Are the Requirements of a Michigan Contractor License?
How Long Does It Take to Get a Contractor License in Michigan?
How Much Does It Cost to Get a Contractor License in Michigan?
Michigan Contractor License Training Programs and Schools
Does Michigan Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Michigan?
Are There Any Penalties for Contracting Without a License in Michigan?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these people to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). Michigan employs 6,340 managers and 26,150 laborers and helpers. The national number is projected to grow 9% for managers and 8% for laborers and helpers from 2023 to 2033 . In Michigan, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is 2%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Michigan?
A contractor license is necessary to perform most work legally in the state of Michigan. Specifically, you need a contractor license to do work valuing more than $600 in labor and materials. Licensing is overseen by the Michigan Department of Licensing and Regulatory Affairs (LARA).
How Can You Get a Contractor License in Michigan?
There is a process for getting your license. It is all spelled out on the state website. To become a licensed contractor in Michigan, applicants must first complete 60 hours of approved prelicensure courses with at least 6 hours in each of the following 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 Construction Safety Standards
The remaining 18 hours can come from other topics on the approved course list
According to the state website, “Residential Builders licensing was added to the Accela platform in 2019. The move was to make obtaining, renewing, and modifying licenses easier and more efficient.” To help Residential Builders interact and engage with the new platform, the following resources are now available at https://aca-prod.accela.com/lara; click on the FAQ link in the top right of the browser window:
Walk-through videos on registering for an account, applying for your first license, modifying your license, and renewing your license.
Link your license to your account
One way to get contracting experience is through a paid apprenticeship program. Michigan offers a variety of apprenticeship programs for working in the trades, including:
Types of General Contractor Licenses in Michigan
Michigan issues two types of general contractor licenses: Residential Builder or Maintenance & Alteration Contractor. The Residential Builder license allows the holder to legally perform commercial or residential contracting work whether that be initial construction, service, or replacement to properties. The state also issues licenses for plumbers, HVAC, and electrical contractors.
Getting a general contractor license
A Residential Builder is primarily involved in the construction, repair, alteration, or improvement of a residential structure or commercial structure. A Maintenance & Alteration Contractor license is for individuals who are focused on one of more of the following trades:
Carpentry
Concrete
Excavation
Insulation work
Masonry
Siding
Roofing
Screens and storm sash
Gutters
Tile and marble
House wrecking
Swimming pools
Basement waterproofing
According to the state website, “The trades, or crafts for which a maintenance & alteration contractor is qualified to practice are listed on the license.”
The bottom line is that you need to be licensed to do any kind of initial residential or commercial construction, repair, or maintenance valuing more than $600 in the state of Michigan.
APPLY FOR LICENSE: Once you’ve completed the required prelicense course, fill out the Michigan Residential Builder or Maintenance & Alteration Contractor License application either online or via a paper form. A copy of state-issued identification, a valid business address, and a certificate of completion of the prelicensure coursework is required with the application. Submit online or mail to: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes/Licensing Division, P.O. Box 30255, Lansing, MI 48909.
PAY APPLICATION PROCESSING FEE: The license fee is $195 for either license type, which is waived for veterans. If filling out the application online, you can pay through LARA’s online permitting system. Otherwise, write a check payable to the State of Michigan and mail it with your application.
TAKE LICENSING EXAM: Once LARA processes your application, you’ll receive approval to register for the required exams with PSI. The Residential Builder license requires passing a business and law and practice/trade combination examination. The closed-book exam has 160 questions and must be completed within four hours. A $117 exam fee applies.
In order to be licensed as an M&A Contractor, you need to pass a trade-specific and business and law combination examination for each trade in which you wish to be licensed. The business and law portion is 50 questions, and each trade adds another 25-50 questions to the closed-book exam. The time limit and price varies depending on the number of trades:
One trade: 135 minutes; $70 fee
Two trades: 270 minutes; $99 fee
PSI’s Candidate Information Bulletin includes suggested study materials.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Michigan.
What Are the Requirements of a Michigan Contractor License?
The license requirements for a contractor in Michigan are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are age, knowledge/experience, and financial prerequisites.
Must be at least 18 years of age.
Must have a state-issued ID.
Complete 60 hours of approved prelicensure education.
Apply for Residential Builder or Maintenance & Alteration Contractor license.
Demonstrate competency by passing all parts of the licensing examinations.
Pay all fees.
How Long Does It Take to Get a Contractor License in Michigan?
How long it takes to complete the required 60 hours of coursework depends largely on your schedule, as there are several in-person and online class options. After completing the course, it will take between six to eight weeks for LARA to process the application and approve you for the exam.
What Business Owners Need to Know
Being efficient in the contracting world, no matter where you are in your licensing journey, takes work. ServiceTitan’s cloud-based, all-in-one contracting software gives workers and business owners in residential field service, commercial contracting, or new construction the technology they need to do the work efficiently, and the data they need to do it effectively.
ServiceTitan features:
SMS communications that keep customers informed about the technician’s visit.
Location-specific service history, including recorded calls, accessible from the mobile app.
Required forms that ensure every job is done right, driving consistency.
The ability to build multi-option proposals with photos, on-site, in minutes.
Sales presentations that make conversations with customers easier and drive the average ticket.
Mobile payment acceptance, eliminating lost checks and increasing cash flow.
To learn more, schedule a demo with a product expert today.
How Much Does It Cost to Get a Contractor License in Michigan?
The prelicensure coursework cost varies depending on the program in which you enroll. PDH Academy offers the required 60 hours online for $229. The Builders License Training Institute offers the course for $199.
The application fee for a Michigan contractor license is $195. The exam for the Residential Builder license costs $117, and the exam for the M&A Contractor license costs $70 for one specialty or $99 for two.
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Michigan Contractor License Training Programs and Schools
LARA maintains a list of approved instructors for the required 60-hour course for prelicensure. While that’s the only education requirement, you can pursue a degree in construction management or construction engineering. There are many higher education options throughout the Wolverine State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science degree.
There are also manyMichigan community colleges throughout the state that offer Construction Management programs and associate degree and certificate options.
Does Michigan Reciprocate Contractor Licenses?
No, Michigan does not hold reciprocal agreements with any other state.
Do I Need to Renew my Contractor License in Michigan?
To keep your state-issued active license current, Michigan requires you to renew it by May 31 every three years. If you’ve been licensed less than six years, you’re required to complete 21 hours of continuing education. Individuals who have been licensed for six years or longer only need to complete three hours of continuing education.
All Residential Builders and M&A Contractors must renew their licenses through LARA’s online Accela portal. The renewal cost is $150. Late renewals incur a $20 fee.
Are There Any Penalties for Contracting Without a License in Michigan?
Yes, there are penalties for contracting without a Michigan builder’s license. Section 601(6) of the Michigan Legislature Code states a person who contracts without a license may be subject to the following penalties:
“In the case of a first offense, a misdemeanor punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 1 year, or both.
In the case of a second or subsequent offense, a misdemeanor punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 2 years, or both.
In the case of an offense that causes death or serious injury, a felony punishable by a fine of not less than $5,000 or more than $25,000, or imprisonment for not more than 4 years, or both.”
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Continuing education allows you to stay informed about emerging technology in the industry. License renewal applicants in Michigan are required to complete 21 hours of continuing education for renewal if they’ve been licensed less than 6 years, or 3 hours if they’ve been licensed for six years or longer. LARA maintains a list of approved continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
ServiceTitan is a comprehensive business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000 contractors across the country.
Ready to learn more about what ServiceTitan can do for your business? Contact our team to schedule a demo today.
