Does Michigan require a contractor license?
Michigan defines a Residential Builder as a person who, for compensation, undertakes or offers to undertake construction, replacement, repair, alteration, improvement, wrecking or demolition of a residential structure. MCL 339.2401
The license discussed here is residential, not a universal license for every commercial construction scope. The law covers detached one- or two-family dwellings and certain townhouses up to three stories, plus related facilities. Start by matching the project and business model to that statutory definition.
The requirement also has statutory exemptions. MCL 339.2403 lists, among others, an owner working on a structure for the owner’s own use and occupancy, a person performing work solely under contract with a licensed Residential Builder or M&A contractor, and an undertaking with an aggregate price below $600. The under-$600 exemption does not apply when the work is part of a larger operation or contracts are divided to evade the act.
Residential Builder versus Maintenance and Alteration
The Residential Builder definition covers the broad lifecycle of a residential structure, including erection, construction, replacement, repair, alteration, addition, improvement, wrecking and demolition. MCL 339.2401
The Residential Maintenance and Alteration Contractor definition is narrower. It covers compensated repair, alteration, additions, improvements, wrecking or demolition, garage building and concrete work on residential property. It is not simply an easier version of the builder license; its authority follows the crafts and trades printed on the license.
The rule is 60 hours, not a general experience substitute
Most initial applicants must complete 60 hours of approved prelicensure courses before receiving a Residential Builder or Maintenance and Alteration license. MCL 339.2404b The statute does not create a broad construction-experience substitute for those 60 hours.
The required course has at least six hours in each of seven areas: business management, estimating and job costing; design and building science; contracts, liability and risk management; marketing and sales; project management and scheduling; the current Michigan residential code; and MIOSHA construction safety standards. The remaining hours complete the 60-hour total through approved course content.
A military-service exemption can apply when the applicant satisfies the service, separation and affidavit requirements in the statute. If the exempt applicant does not pass the licensing exam on the first attempt, the applicant must complete the prelicensure course before retesting.
M&A is limited to listed crafts
Michigan law lists these Maintenance and Alteration crafts and trades: carpentry; concrete; swimming-pool installation; basement waterproofing; excavation; insulation; masonry; roofing; siding and gutters; screen or storm-sash installation; tile and marble; and house wrecking. MCL 339.2404
That is 12 listed categories because siding and gutters are one combined category. The license must specify the particular craft or trade for which the holder qualified. Incidental and supplemental work may accompany the licensed trade, but the listed scope is still the center of the contract.
Prelicensure education and the licensing exam
For nonexempt initial applicants, the 60-hour prelicense course comes from MCL 339.2404b. MCL 339.2404b The separate examination requirement comes from MCL 339.2404. MCL 339.2404
The statutes require the applicable education and examination before the license is issued, but the fetched evidence does not establish whether LARA expects the application before or after testing. Use Michigan’s online LARA Citizen Access system for the filing itself. The official portal exposes BCC license creation, tracking and renewal functions. LARA Citizen Access
The current fee statute lists a $15 application-processing fee, $50 for the complete Builder or M&A examination and a $50-per-year license fee. MCL 338.2239 Check the portal and exam vendor before paying because service or vendor charges may be presented separately. Use the contractor-license cost guide to keep statutory fees, course tuition and any vendor charges in separate budget lines.
How to choose between the two licenses
Choose Residential Builder when the contract involves broad responsibility for erecting or constructing the covered residential structure.
Choose Maintenance and Alteration only when the contracted work fits the particular crafts printed on that license.
Before applying:
- Write down the exact work you will advertise and contract.
- Compare it with the statutory Builder and M&A definitions.
- For M&A, identify every listed craft you need.
- Check whether separately regulated electrical, plumbing or mechanical work will be subcontracted.
- Complete the 60-hour course unless a specific statutory exemption applies.
- Use current LARA instructions for the exam and application.
Residential Builder does not replace skilled-trade licenses
Michigan’s Occupational Code separately exempts licensed electrical, plumbing and mechanical contractors from the Residential Builder/M&A article only for work within their respective licensed trade: electrical installation, maintenance or repair; plumbing installation, maintenance or repair; and mechanical installation, maintenance or repair. MCL 339.2403
That is the clean evidence-based boundary: each skilled-trade exemption is limited to that trade’s work. For the plumbing credential ladder, use the Michigan plumbing-license guide.
Three-year renewal and continuing competency
Michigan issues Residential Builder and M&A licenses for three years. Renewal applicants must state that they have a current Michigan residential code and meet the applicable continuing-competency requirements, and they must keep supporting documentation for at least five years. MCL 339.2404
For an individual first licensed on or after January 1, 2009, the statute generally requires at least 21 hours in each three-year cycle during the first six calendar years of licensure, including at least three hours in each calendar year. After more than two three-year cycles without discipline, the minimum becomes three hours per cycle: one hour each of codes, safety and legal issues. MCL 339.2404b
Frequently asked questions
Does Michigan have a state contractor license?
Yes, Michigan licenses Residential Builders and Residential Maintenance and Alteration Contractors at the state level for the residential work covered by statute. It is not a universal commercial general-contractor license.
Can experience replace the 60-hour course?
The current statute does not provide a broad construction-experience substitute. Most nonexempt initial applicants must complete 60 hours of approved prelicensure education.
How many M&A categories are listed?
The statute lists 12 because siding and gutters are one combined category. The license specifies the crafts or trades for which the holder is qualified.
What are the statutory application and license fees?
MCL 338.2239 lists a $15 application-processing fee, $50 for the complete Builder or M&A examination and a $50-per-year license fee. Check the current portal and exam vendor for the amount collected in your transaction.
How often does the license renew?
Every three years, with the applicable continuing-competency requirements. Keep the supporting continuing-competency documentation for at least five years.
What changed in this refresh
The earlier page incorrectly presented experience as a general alternative to the 60-hour course, split siding and gutters into separate M&A categories, and alternately claimed that insurance and a bond were both required and not required. The current statute supports none of those shortcuts or contradictions.
The clean path is statutory scope, 60 approved hours unless exempt, examination, application, then three-year renewal compliance.