How to get a builder license in Michigan
Michigan requires a state license for residential construction work where the total contract price reaches just $600, one of the lowest thresholds in the country. Licensing runs through the Department of Licensing and Regulatory Affairs, with two credentials: the Residential Builder license for new construction and general contracting, and the narrower Maintenance and Alteration Contractor license for remodel and repair trades. Both require 60 hours of approved prelicensure education and a two-part exam. Commercial general contracting, by contrast, is not state licensed.
Licensing authority
Michigan Department of Licensing and Regulatory Affairs: https://www.michigan.gov/lara
When a license is required
A Residential Builder or Maintenance and Alteration Contractor license is required for residential projects where the aggregate contract price for labor, materials, and other items is $600 or more, and splitting a job into sub-$600 contracts to dodge it is expressly barred. Commercial construction has no state GC license. Electrical, plumbing, and mechanical work carry separate LARA licenses at any amount.
License classes in Michigan
Residential Builder
The broad credential authorizing new residential construction and general contracting on homes. Requires the full 60-hour education and the two-part exam with the larger trade section.
Maintenance and Alteration Contractor
Authorizes repair, alteration, and improvement of existing residential structures within one or more of 14 designated trades, such as carpentry or roofing. Same education requirement, narrower scope.
Trade licenses
Electricians, plumbers, and mechanical contractors license through LARA's construction codes bureau with their own experience and exam tracks, separate from the builder licenses.
What you need before you apply
- Complete 60 hours of approved prelicensure education, including at least 6 hours in each of 7 required competency areas
- Pass the two-part PSI exam: business and law, then practice and trade
- Be at least 18 with the character disclosures LARA requires
- Submit the license application and fee to LARA
- Maintain any local registrations your cities require on top
- Carry liability insurance and workers compensation appropriate to your crew
How to get licensed in Michigan
- Take the 60 hours. The prelicensure course must be LARA-approved and cover the seven mandatory competency areas at 6 hours minimum each. Online providers are accepted, and the certificate is your ticket to the exam.
- Choose builder or M and A. New construction and whole-house work needs the Residential Builder license. Staying inside specific remodel trades fits the Maintenance and Alteration license. The exam's trade section differs accordingly.
- Pass both exam parts. PSI administers a business and law section and a trade section. The Residential Builder trade section is the longer of the two, so study for it like it matters.
- Apply to LARA. File the application with your education certificate, exam results, and fee. The license issues to you or your company depending on how you structure it.
- Mind the $600 line forever. Nearly every real residential job in Michigan crosses $600, so treat the license as mandatory for the business, and keep it renewed. A lapsed license has the same consequences as no license.
Reciprocity with other states
Michigan does not reciprocate residential builder licenses with other states; the 60-hour education and Michigan exam apply to everyone. Experience from other states helps you pass but earns no waivers. The trade licenses under LARA have their own limited endorsement rules worth checking with the specific program.
Working without a license
Working unlicensed on residential jobs of $600 or more is a misdemeanor carrying fines from $5,000 to $25,000, and the civil bar is total: an unlicensed builder cannot sue to collect payment and cannot place a lien. Michigan courts enforce this strictly, so unlicensed work is effectively donated if the client refuses to pay. Confirm current education providers and fees with LARA.
Frequently asked questions
Do handymen need a license in Michigan?
Above $600 per project, yes, and that includes materials, so almost any real job qualifies. The Maintenance and Alteration Contractor license was built for exactly this: repair and remodel work within designated trades. Below $600 total, no license is needed, but the statute bars splitting jobs to stay under.
What is the difference between a Residential Builder and an M and A Contractor?
The Residential Builder license covers new home construction and acting as a residential general contractor. The Maintenance and Alteration license covers repair and improvement of existing homes within one or more of 14 named trades. Both require the same 60 hours of education; the exam trade section reflects the scope.
Can I collect payment if I worked without a Michigan license?
No. Michigan law bars unlicensed builders from suing for compensation or placing liens, so if the client refuses to pay, there is no legal remedy. On top of that, unlicensed work is a misdemeanor with fines running $5,000 to $25,000. It is among the harshest unlicensed-work regimes anywhere.
Does Michigan license commercial general contractors?
No, the state licensing scheme covers residential work; commercial GC licensing does not exist at the state level in Michigan. Commercial trades still need their LARA licenses, and municipalities may impose registration on commercial GCs. Residential work is where the $600 rule and builder licenses apply.
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