Michigan Contractor License Requirements
verifiedState-Level License RequiredMichigan requires a residential builder license for all residential construction. 60 hours of pre-licensure education is required. Commercial work does not require a state-level license.
gavelHow Contractor Licensing Works in Michigan
Michigan licenses residential construction from the first dollar. The Department of Licensing and Regulatory Affairs (LARA) requires a Residential Builder license for all residential construction, with a Maintenance and Alteration Contractor license available for narrower repair scopes, and the state is one of the few anywhere to mandate classroom time: 60 hours of approved pre-licensure education before you can sit for the builder exam. Electrical, plumbing, and mechanical trades are licensed separately through the Bureau of Construction Codes. Commercial construction, in contrast, carries no state general contractor license. The neighboring comparison favors no one uniformly; Indiana and Illinois leave residential licensing to municipalities, so Michigan's education requirement is the region's highest entry bar for home builders.
The Michigan sequence is rigid by design: complete the 60 hours of pre-licensure education through an approved provider, pass the builder exam, then submit the application with proof of insurance and workers compensation. Attempting to schedule the exam before the education certificate exists is the most common false start. Once issued, the license renews on a three-year cycle from the issue date, one of the longer renewal periods in the country, with continuing competency requirements attached. Michigan holds no reciprocity agreements, and the education mandate applies to out-of-state veterans the same as to newcomers, so relocating builders should enroll in the coursework before the move rather than after. Commercial-only contractors escape state licensing but should verify municipal requirements in Detroit, Grand Rapids, and other cities.
account_balanceLicensing Board
Board Name
Michigan Department of Licensing and Regulatory Affairs (LARA)
Phone
(517) 241-9302
descriptionLicense Types
| Type | Threshold | Notes |
|---|---|---|
| Residential Builder | All work | Required for all residential construction |
| Maintenance & Alteration Contractor | All work | Residential repairs under a certain scope |
| Electrical | All work | Licensed through Bureau of Construction Codes |
| Plumbing | All work | Licensed through Bureau of Construction Codes |
| Mechanical | All work | Licensed through Bureau of Construction Codes |
checklistRequirements
- check_circlePass builder exam
- check_circle60 hours pre-licensure education
- check_circleProof of insurance
- check_circleWorkers compensation
paymentsFee Schedule
Application
$185
Annual Renewal
$185
Exam Fee
$150
event_repeatRenewal Period
Triennial — license issue date
shieldInsurance Minimums
General Liability
$300,000
Workers Compensation
Required
swap_horizReciprocity
- arrow_forwardNo reciprocity agreements
helpFrequently Asked Questions
Do I need a contractor license in Michigan?
For residential construction, yes, at any project value: Michigan's LARA requires a Residential Builder license, or a Maintenance and Alteration Contractor license for limited repair scopes. Electrical, plumbing, and mechanical trades are licensed through the Bureau of Construction Codes. Commercial construction requires no state general contractor license, though cities may impose their own registration.
What is Michigan's 60-hour education requirement?
Before sitting for the Residential Builder exam, every applicant must complete 60 hours of state-approved pre-licensure education covering code, safety, contracts, and business practices. There is no experience-based waiver, and it applies equally to experienced builders moving in from other states. Completing the coursework is the prerequisite for exam scheduling, so it sets the whole timeline.
What are the penalties for unlicensed building in Michigan?
Unlicensed residential building is a violation of Michigan law carrying fines and potential criminal exposure, and unlicensed builders cannot sue to collect payment for residential work, leaving them unable to enforce contracts against nonpaying clients. Since the requirement applies from the first dollar with no small-project threshold, there is no legal residential work below the licensing line.
How long does the Michigan builder license take?
Around two to four months for most applicants. The 60 hours of pre-licensure education is the pacing item, followed by exam scheduling, passing, and LARA's application review with insurance and workers compensation documentation. The payoff is a triennial renewal cycle, longer than the annual or biennial cycles most states use. Michigan grants no reciprocity to shorten any step.
infoData sourced from state licensing board websites. Requirements change frequently — verify with your state board before applying. Last updated April 2026.