Michigan Contractor License Types
| License Type | Application Fee | Annual Renewal | Bond |
|---|---|---|---|
| Residential Builder Required for any person who, for compensation other than wages for personal labor, undertakes the erection, construction, replacement, repair, alteration, addition, subtraction, improvement, wrecking, or demolition of a residential or combination residential/commercial structure. Also covers prefabricated/shell housing and speculative builders who erect a structure other than for their own use. Statutory authority: MCL 339.2401(a). | $195 (individual) | $185 every 3 years (licenses expire May 31 of the third year); $20 late fee during the 60-day grace period after expiration | No state-level bond required |
| Residential Maintenance & Alteration Contractor Required for contractors performing repair, alteration, addition, improvement, wrecking, or demolition of residential structures in one or more specific trades listed on the license (e.g., carpentry, concrete, roofing, siding). Also required for persons who purchase, substantially rehabilitate, and resell residential structures more than twice per calendar year. Statutory authority: MCL 339.2401(b). | $195 (individual) | $185 every 3 years (licenses expire May 31 of the third year); $20 late fee during 60-day grace period | No state-level bond required |
| Electrical Contractor Required for any business performing electrical installation, maintenance, or repair. The Electrical Contractor license must be paired with a Master Electrician who is responsible for code compliance; a Master Electrician may associate with only one Electrical Contractor at a time. Licensed by the BCC Electrical Division under the Skilled Trades Regulation Act, 2016 PA 407 (MCL 339.5101 et seq.), which repealed and replaced the Electrical Administrative Act (1956 PA 217) effective April 4, 2017. Examinations are based on the 2023 National Electrical Code and Michigan Electrical Code Rules Part 8. | See BCC Electrical Licensing fee schedule | 3-year cycle | No state-level bond required |
| Plumbing Contractor Required for any business performing plumbing work. The contractor must either hold a Master Plumber license or employ a Master Plumber as their representative. Licensed by the BCC Plumbing Division under the Skilled Trades Regulation Act, 2016 PA 407 (MCL 339.5101 et seq.), which repealed and replaced the State Plumbing Act (2002 PA 733) effective April 4, 2017. A Master Plumber license requires 4,000 hours of journey-plumber experience over at least 2 years plus passing the Master exam. | See BCC Plumbing Licensing fee schedule | 3-year cycle | No state-level bond required |
| Mechanical Contractor Required for HVAC, refrigeration, hydronic heating/cooling, ductwork, fuel gas piping, and related mechanical work. License is issued for one or more of 14 classifications; each classification requires a minimum of 3 years of experience. Licensed by the BCC Mechanical Division under the Skilled Trades Regulation Act, 2016 PA 407 (MCL 339.5101 et seq.), which repealed and replaced the Forbes Mechanical Contractors Act (1984 PA 192) effective April 4, 2017. | See BCC Mechanical Licensing fee schedule | 3-year cycle | No state-level bond required |
Processing time: Approximately 4-8 weeks from application submission to PSI exam authorization (eligibility approval is sent to PSI within 10 business days of Department approval); total time to active license depends on scheduling and passing the exam, which must be completed within one year of eligibility. from application submission to license issuance.
Michigan regulates residential construction through the Bureau of Construction Codes (BCC) inside the Department of Licensing and Regulatory Affairs (LARA). Two primary residential licenses exist: the Residential Builder license for persons who construct or substantially alter residential (or mixed residential/commercial) structures, and the Residential Maintenance & Alteration (M&A) Contractor license for specific trades such as carpentry, concrete, roofing, siding, painting, masonry, insulation, and basement waterproofing. Both licenses are authorized under Article 24 of the Michigan Occupational Code (Public Act 299 of 1980, codified at MCL 339.2401 et seq.). A license is required whenever the aggregate contract price for labor, materials, and other items on a single residential project is $600 or more (MCL 339.2403). Applicants must complete 60 hours of approved prelicensure education, pass a PSI-administered examination, and pay a $195 application fee. Michigan does not require a state-level surety bond for Residential Builders or M&A Contractors, but the Michigan Builders Trust Fund Act (MCL 570.151 et seq.) imposes felony liability on contractors who misappropriate construction funds. Electrical, plumbing, and mechanical (HVAC/refrigeration) contractors are licensed separately by BCC under the Skilled Trades Regulation Act, 2016 PA 407 (MCL 339.5101 et seq.), which repealed and replaced the Electrical Administrative Act, State Plumbing Act, and Forbes Mechanical Contractors Act effective April 4, 2017.
Step 1: Get the Contractor's Michigan License Number
Ask the contractor for their Michigan Residential Builder, M&A Contractor, Electrical, Plumbing, or Mechanical license number. Licensed contractors typically include the number on contracts, invoices, and advertising. If a contractor cannot provide a license number, treat that as a red flag before proceeding with verification.
Step 2: Look Up the License on LARA's Accela Portal
Use the LARA Accela Citizen Access (ACA) license lookup to verify the license number, status, and authorized trades. Residential Builder and M&A Contractor licenses show the specific trades (carpentry, roofing, etc.) the licensee is authorized to perform. Confirm the license is active and has not expired or been disciplined.
Step 3: Confirm the License Covers the Right Trade
Michigan M&A Contractors are licensed by trade — a license with only 'Painting and Decorating (J)' does not authorize roofing or concrete work. For electrical, plumbing, or mechanical work, verify that the business holds the correct specialty license, and that the associated Master (Electrician, Plumber) is currently active.
- License status shows 'Active'
- Trades listed on the license match your project scope
- For electrical contractors: a Master Electrician is associated
- For plumbing contractors: a Master Plumber is associated
Step 4: Check Complaint and Disciplinary History
The BCC Enforcement Section investigates complaints against licensed residential builders, M&A contractors, and trade licensees. Disciplinary actions appear on the license record. Call the BCC Licensing Section at 517-241-9316 to ask about pending investigations that may not yet be reflected online.
Step 5: Verify Insurance Coverage
Michigan does not require licensed residential contractors to carry state-mandated liability insurance, but any contractor with one or more employees working 35+ hours per week, or three or more employees total, must carry workers' compensation insurance. Ask for a current certificate of insurance and general liability coverage before signing a contract.
Michigan Contractor Insurance Requirements
| Insurance Type | Requirement |
|---|---|
| General Liability | Not state-mandated for Residential Builder or M&A Contractor licensure. Strongly recommended; many local jurisdictions require proof of liability coverage before issuing building permits. |
| Workers' Compensation | Required for Michigan employers with one or more employees working 35 or more hours per week for 13 or more weeks, or with three or more employees at any one time (regardless of hours). Governed by the Workers' Disability Compensation Act, MCL 418.101 et seq., administered by the Workers' Disability Compensation Agency inside LARA. |
Michigan Contractor Bond Requirements
Michigan does not require a surety bond or performance bond to obtain a Residential Builder, Maintenance & Alteration Contractor, Electrical, Plumbing, or Mechanical contractor license. Individual municipalities, project owners, or general contractors may require a bond as a condition of a permit or contract, but this is a local or contractual requirement rather than a state licensing requirement.
Michigan Consumer Protections for Home Improvement
Michigan law provides several important protections for homeowners hiring contractors:
- Any residential construction project with an aggregate value of $600 or more requires a licensed Residential Builder or M&A Contractor (MCL 339.2403).
- The Builders Trust Fund Act (MCL 570.151 et seq.) treats contractor payments as trust funds; misappropriation is a felony and the debt cannot be discharged in bankruptcy.
- The BCC Enforcement Section investigates complaints against licensees for licensing violations and code violations, and can suspend, revoke, or condition licenses.
- Residential building complaints must be filed with BCC within 18 months of completion, occupancy, or purchase (whichever is later); M&A complaints within 18 months of the last day at the jobsite, final inspection, or payment — applies to both Residential Builder and M&A complaints (skilled-trades complaints use a different 12-month deadline).
- Construction lien rights are preserved for unpaid subcontractors and suppliers under the Construction Lien Act, MCL 570.1101 et seq.
- Project owners can verify a contractor's license, authorized trades, and disciplinary history through LARA's online license lookup before hiring.
What Happens if You Hire an Unlicensed Contractor?
Hiring an unlicensed contractor in Michigan puts you at risk:
- Unlicensed contracting on a project worth $600 or more violates MCL 339.2403 and can result in BCC enforcement action, fines, and disciplinary findings.
- Contracts with unlicensed contractors for work requiring a license may be unenforceable in Michigan courts.
- Consumers lose access to BCC's complaint investigation and licensing-based remedies when hiring unlicensed contractors.
- Unlicensed work may fail to obtain required building permits, creating title and resale problems for the property.
- Homeowner's insurance may deny claims for damage caused by unlicensed contractor work.
- BCC can pursue injunctive relief and refer egregious cases for criminal prosecution.
How to Report an Unlicensed Contractor in Michigan
Report unlicensed contracting activity to the BCC Enforcement Section using the Statement of Complaint form. Performing residential construction work on a project valued at $600 or more without a valid Michigan license violates MCL 339.2403.
- Email: LARA-BCC-Compliance@michigan.gov
- Phone: 517-241-9316 (BCC Licensing Section)
- Mail: LARA / BCC Enforcement Section, P.O. Box 30254, Lansing, MI 48909
How to File a Complaint Against a Registered Contractor in Michigan
The BCC Enforcement Section has jurisdiction over licensing and code violations by Residential Builders, M&A Contractors, electricians, plumbers, mechanical contractors, boiler and elevator licensees, and mobile home parks/retailers. BCC does not resolve contractual, monetary, or warranty disputes — those must be pursued in civil or small claims court.
You can file a complaint by:
- Online / form: Download the BCC Statement of Complaint form at michigan.gov/bcc under the Complaints section
- Email: LARA-BCC-Compliance@michigan.gov
- Mail: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes / Enforcement Section, P.O. Box 30254, Lansing, MI 48909
Residential building complaints must be received within 18 months of completion, occupancy, or purchase. M&A contractor complaints must be received within 18 months of the last day at the jobsite, final inspection, or payment — applies to both Residential Builder and M&A complaints (skilled-trades complaints use a different 12-month deadline).
Michigan Contractor Bond Schedule
Although no surety bond is required for state licensure, Michigan imposes substantial statutory protection for project funds through the Michigan Builders Trust Fund Act (MCL 570.151 et seq.). Payments received by a contractor are held in trust for subcontractors, suppliers, and laborers on the specific project for which funds were paid.
| License Type | Bond Amount | Notes |
|---|---|---|
| State License Bond | Not required | No bond is required for initial licensure or renewal of Residential Builder or M&A Contractor licenses. |
| Builders Trust Fund Act Obligation | Full amount of funds received | Under MCL 570.151-153, a contractor who receives payment for a construction project holds those funds in trust for subcontractors, suppliers, and laborers. Per MCL 570.152, intentional diversion of trust funds is a felony punishable by a $100-$5,000 fine and/or 6 months to 3 years imprisonment. |
What Makes Michigan Contractor Licensing Unique
$600 Licensing Threshold (MCL 339.2403)
Michigan is one of the lowest-threshold states in the country: any single residential project where the aggregate contract price for labor, materials, and other items totals $600 or more requires a licensed Residential Builder or M&A Contractor. The statute explicitly bars splitting a larger job into sub-$600 contracts to evade licensing.
60-Hour Prelicensure Education Required Since 2008
Since June 1, 2008, every Residential Builder and M&A Contractor applicant must complete 60 hours of BCC-approved prelicensure education before sitting for the exam. The curriculum requires at least 6 hours each in business management/estimating, design and building science, contracts and liability, marketing and sales, project management, the Michigan Residential Code, and MIOSHA construction safety standards.
License Term is 3 Years, Expiring May 31
Residential Builder and M&A Contractor licenses run on a three-year cycle and expire on May 31 of the third year. Renewals are handled online through the Accela platform; only credit/debit card or e-check payments are accepted. A 60-day grace period is available with a $20 late fee, after which the licensee must reapply.
Tiered Continuing Education for Post-2009 Licensees
Contractors originally licensed on or after January 1, 2009 must complete 21 hours of continuing education in each of their first two 3-year cycles (42 hours over the first six years), then drop to 3 hours per 3-year cycle thereafter. Contractors licensed before January 1, 2009 need only 3 hours per 3-year cycle: one hour each on codes/laws, safety, and business-law changes.
No State Surety Bond, But Trust Fund Act Liability
Michigan imposes no surety bond at the state level for residential contractor licenses. Instead, the Builders Trust Fund Act (MCL 570.151 et seq.) makes contractor payments trust funds; per MCL 570.152, intentional diversion before paying subs and suppliers is a felony punishable by a $100-$5,000 fine and/or 6 months to 3 years imprisonment, and personal liability extends to corporate officers and employees who participate in the diversion.
Michigan Contractor License Fees
Frequently Asked Questions: Michigan Contractor Licensing
How do I check a contractor's license in Michigan?
Use LARA's Accela license lookup at aca-prod.accela.com/LARA to search by license number, business name, or individual name. The lookup shows license type (Residential Builder, M&A Contractor, Electrical, Plumbing, Mechanical), status, expiration date, and the specific trades authorized under an M&A license. You can also call the BCC Licensing Section at 517-241-9316.
What is the minimum project amount that requires a contractor license in Michigan?
Under MCL 339.2403, any single residential project with an aggregate contract value of $600 or more (labor, materials, and other items combined) requires a licensed Residential Builder or M&A Contractor. Michigan law explicitly prohibits dividing a larger project into smaller sub-$600 contracts to avoid licensing.
What's the difference between a Residential Builder and an M&A Contractor?
A Residential Builder license covers new construction, major remodels, and full-scope work on residential and combination residential/commercial structures. An M&A (Maintenance & Alteration) Contractor license is trade-specific — authorizing only the trades listed on the license (e.g., roofing, siding, concrete, carpentry). Both licenses share the same 60-hour prelicensure education requirement, $195 application fee, and 3-year term.
Do I need a separate license for electrical, plumbing, or HVAC work in Michigan?
Yes. Electrical, plumbing, and mechanical (HVAC/refrigeration) work is licensed separately by the BCC under its Electrical, Plumbing, and Mechanical Divisions. A Residential Builder or M&A Contractor license does not authorize these trades. Mechanical contractors must have at least 3 years of experience in each of the 14 work classifications they apply for.
How much does a Michigan Residential Builder license cost?
The application fee is $195 for an individual Residential Builder or M&A Contractor license. The PSI examination fee is paid directly to PSI when scheduling and varies by exam and number of trade parts — see the current PSI Michigan bulletin at test-takers.psiexams.com/midlrars for current fees. Renewal is $185 every 3 years, with a $20 late fee during the 60-day grace period after expiration.
Do Michigan contractors need a surety bond?
No — Michigan does not require a state-level surety bond for Residential Builder, M&A Contractor, Electrical, Plumbing, or Mechanical licenses. Some municipalities, project owners, or lenders may require a bond as a condition of permit issuance or contract award, but this is a local or contractual requirement. Contractors are, however, subject to the Builders Trust Fund Act, which creates felony liability for misappropriating construction funds.
How long does it take to get a Michigan contractor license?
After completing the 60 hours of prelicensure education and submitting a complete application with the $195 fee, LARA typically approves eligibility within a few weeks and sends the approval to PSI within 10 business days. The candidate then schedules the exam at one of five PSI testing centers. Once the exam is passed, renewed licenses or new licenses are typically mailed within 5-10 business days of final approval.
What are the continuing education requirements for Michigan contractors?
Contractors originally licensed on or after January 1, 2009 must complete 21 hours of continuing education per 3-year cycle during their first six years of licensure (42 hours total), then 3 hours per 3-year cycle thereafter. The 21-hour requirement includes 1 hour each on building codes, safety, and construction/business law changes, plus 18 hours on other approved topics. Contractors licensed before January 1, 2009 need only 3 hours per 3-year cycle.
What happens if I hire an unlicensed contractor in Michigan?
Unlicensed contracting on a project valued at $600 or more violates MCL 339.2403 and exposes the contractor to disciplinary action, fines, and potential criminal liability. Consumers who hire unlicensed contractors lose access to BCC's complaint investigation process, may find their contract unenforceable, and typically cannot recover damages from the Builders Trust Fund protections in the same way as with licensed contractors.
How do I file a complaint against a Michigan contractor?
Download the BCC Statement of Complaint form from michigan.gov/bcc and email it to LARA-BCC-Compliance@michigan.gov or mail it to LARA / BCC Enforcement Section, P.O. Box 30254, Lansing, MI 48909. Residential building and M&A contractor complaints must be filed within 18 months of completion, occupancy, purchase, the last day at the jobsite, final inspection, or final payment (skilled-trades complaints — electrical, plumbing, mechanical, boiler, elevator — use a different 12-month deadline under BCC-ES-101). BCC does not mediate monetary or warranty disputes — those go to civil or small claims court.
Sources
Facts on this page were verified against the following primary sources on April 20, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- LARA Bureau of Construction Codes (BCC) — home — Primary regulator for residential builders, M&A contractors, and the electrical, plumbing, mechanical, boiler, and elevator trades. (retrieved 2026-04-20)
- BCC — Residential Builders Licensing Section — Official landing page for Residential Builder and M&A Contractor licensing, forms, and FAQs. (retrieved 2026-04-20)
- BCC — Maintenance & Alteration Contractor License Information — Trade list (A-T) and M&A-specific licensing information. (retrieved 2026-04-20)
- BCC — Prelicensure Education Requirements — 60-hour prelicensure course structure and seven required competency areas. (retrieved 2026-04-20)
- BCC — Builders Continuing Competency (PDF) — Continuing education rules including the 21-hour / 3-hour tiered requirements based on original license date. (retrieved 2026-04-20)
- BCC — Residential Builder FAQ (PDF) — $600 licensing threshold, license term, renewal grace period, and fee waivers. (retrieved 2026-04-20)
- BCC — PSI Examinations — PSI is the state's testing contractor; five testing centers, six days a week, one-year eligibility window. (retrieved 2026-04-20)
- BCC — Electrical Examination, Licensing & Registration — Electrical Contractor licensing, Master Electrician requirement, and exam codes (2023 NEC). (retrieved 2026-04-20)
- BCC — Plumbing Examination, Licensing & Registration — Plumbing Contractor, Master Plumber, and Journey Plumber licensing requirements and experience hours. (retrieved 2026-04-20)
- BCC — Mechanical Examination, Licensing & Registration — Mechanical Contractor classifications (HVAC, refrigeration, hydronic, fuel gas, etc.) and 3-year experience requirement per classification. (retrieved 2026-04-20)
- LARA Accela Citizen Access — License Lookup — Official Michigan license verification portal for BCC-licensed contractors. (retrieved 2026-04-20)
- Michigan Legislature — MCL 339.2401 (Article 24 definitions) — Statutory definitions of Residential Builder and Residential Maintenance & Alteration Contractor. (retrieved 2026-04-20)
- Michigan Legislature — MCL 339.2403 (licensing exemptions and $600 threshold) — Establishes the $600 aggregate-project-value licensing threshold and anti-evasion rule. (retrieved 2026-04-20)
- Michigan Legislature — Builders Trust Fund Act (MCL 570.151 et seq.) — Statute treating construction payments as trust funds; misappropriation is a felony. (retrieved 2026-04-20)
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