How to Get a Contractor License in Michigan

Michigan licenses residential and the trades, not commercial GC

A builder I know in Royal Oak spent six weeks chasing a "Michigan general contractor license" before realizing the state doesn't issue one for commercial work. He'd already paid for an exam prep course aimed at a license that doesn't exist, lined up a CPA for a financial statement nobody was going to ask for, and missed the bid window on a strip-mall buildout because he was waiting on paperwork that was never going to arrive. Michigan's contractor licensing is one of the most lopsided systems in the country: heavy on residential, heavy on the trades, and almost nothing at the state level for commercial general contracting.

Michigan licenses residential builders and residential specialty trades through the Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes. Mechanical, electrical, and plumbing contractors are licensed through three separate boards inside LARA. Commercial general contracting has no state license — your entire footprint for commercial GC work is municipal. Pick the wrong category and you can spend months on the wrong application; pick the right one and Michigan is procedurally cleaner than most of its peers.

LARA Bureau of Construction Codes: the umbrella

The Bureau of Construction Codes (BCC) sits inside LARA and houses every state-level construction license Michigan issues. Five separate units handle the actual licensing:

Residential Builders and Maintenance & Alteration Contractors: the Residential Builder (RB) license and the 14 specialty M&A classifications
Mechanical Contractors: commercial and residential HVAC, refrigeration, hydronics, ductwork, and 10 other classifications
Electrical Administrative Board: master electricians, journeymen, electrical contractors, sign specialists, fire alarm specialists
State Board of Plumbing: master plumbers, journeymen, plumbing contractors, medical gas installers
Boilers Division and Elevators Division: niche specialty licenses outside the scope of most GCs

Each of those five units issues its own license, runs its own exam, sets its own renewal cycle, and audits its own continuing education. There is no single LARA contractor license that covers more than one. A design-build remodeler with in-house plumbing and electrical is holding three separate state licenses on three different timelines.

Residential Builder (RB) license

The Residential Builder license is the most common Michigan construction license, held by general contractors who build, alter, repair, or improve residential structures. "Residential" in Michigan means single-family detached, two-family (duplex), and condominiums up to and including the unit owner's interior. Multifamily buildings of 3 or more units, hotels, and any commercial structure are outside the RB scope.

RB license requirements

Age: 18+
Pre-licensure education: 60 hours of approved coursework before sitting the exam, covering business management, estimating, the Michigan Residential Code, and OSHA construction standards. Approved providers are listed on the LARA BCC website. Online and classroom both count; the requirement is hours, not format.
Exam: pass the PSI builder exam, which has two parts (business and law, plus trade) administered together. Passing score is 70% on each part. Open book with approved references.
Application fee: $195 paid to LARA at application time
Insurance: not state-mandated for the RB license itself, but required by every Michigan municipality before they'll issue a permit (typical $300,000 to $500,000 GL minimums)
Renewal: every 3 years, due May 31 of the renewal year. $195 renewal fee. 60-day grace period through July 31 with a $50 late fee; after July 31 the license is "lapsed" and reinstatement requires a separate reinstatement fee plus all back-due CE.
Continuing education: 21 hours of approved CE per 3-year cycle, including a mandatory 3 hours on Michigan Residential Code updates. CE has to come from LARA-approved providers and is audited at renewal.
Term: 3 years, expiring May 31 in the third year regardless of when issued

The RB license is held by an individual called the qualifying officer. A company that wants to operate under an RB license registers as a Builder Company and lists the qualifying officer on file with LARA. Every commercial document — contracts, advertising, vehicles, permits — must list the RB license number. If the qualifying officer leaves, the company has to designate a new one within 60 days or the company license lapses.

RB scope: what counts as residential

The line between RB scope and out-of-scope is mechanical and important:

Single-family detached homes: RB scope.
Two-family (duplex): RB scope.
Condominium interiors (up to the unit boundary): RB scope.
Condominium common elements, building exteriors, structural elements: not RB scope. The condo association's general contractor is doing commercial work.
Multifamily of 3+ units: not RB scope.
Townhouses where each unit has independent vertical fire separation walls: RB scope per unit, but the structural shell is commercial.
Mixed-use (ground-floor retail with apartments above): not RB scope.
Manufactured housing: not RB scope (separate Manufactured Housing license through LARA Manufactured Housing Commission).

An RB-only contractor who bids a 4-unit apartment building is bidding work outside their license. Even if the project completes successfully and gets occupied, the contract is unenforceable in court and any homeowner claim under Michigan's consumer protection statutes turns into an automatic loss.

Maintenance and Alteration (M&A) Contractor: the specialty trades

The M&A Contractor license is the alternative to a full Residential Builder license. M&A holders work on residential structures within a single specialty trade. Same 60-hour pre-licensure education and same exam structure, but the trade portion is narrowed to the specialty. Same $195 fee, same 3-year renewal, same 21 hours of CE per cycle.

M&A classifications

Carpentry
Concrete
Excavation
Garages
Gutters
Insulation work
Masonry
Painting and decorating
Roofing
Screen and storm sash
Siding
Swimming pool installation
Tile and marble
House wrecking (residential demolition)

You can hold one M&A class or any combination, but every additional class costs the full $195 application fee and requires passing the trade portion for that specialty. A roofer who wants to add siding has to apply, pay, and pass the siding trade exam separately. Most multi-trade shops eventually upgrade to a full Residential Builder license to avoid stacking M&A renewals.

The M&A license is restricted to residential work for the same scope as RB. A roofing M&A holder cannot reroof a strip mall, a hotel, or an apartment building of 3+ units. Commercial roofing requires no state license in Michigan, which sounds permissive until you discover that every commercial GC and every insurer asks to see one anyway.

Mechanical Contractor license

The Mechanical Contractors Section of BCC licenses HVAC, refrigeration, ductwork, and 11 other mechanical classifications for both residential and commercial work. Unlike the RB license, the Mechanical license does cover commercial scope.

Mechanical license classifications

HVAC equipment: furnaces, air conditioners, heat pumps, packaged units
Hydronics: hot water heating systems, boilers under 30 horsepower
Ductwork: sheet metal fabrication and installation
Refrigeration: commercial refrigeration including walk-ins and supermarket racks
Limited heating: gas and oil-fired equipment under 400,000 BTU
Unlimited heating: all heating equipment regardless of size
Fire suppression: automatic sprinkler systems
Process piping: industrial process piping
Specialty (LP gas, fuel gas piping, solid fuel, solar)

Mechanical license requirements

Experience: 3 years of full-time, verifiable work in the trade under a licensed contractor
Exam: pass the trade exam for each requested classification plus a business and law exam, all through PSI
Application fee: $100 plus $100 per additional classification
Initial license fee: $200 once approved
Renewal: every 3 years, $200, due May 31
Continuing education: 21 hours per 3-year cycle, including 3 hours on the current Michigan Mechanical Code
Insurance: not state-mandated, but every municipal permit office asks for $300,000 to $500,000 GL plus workers' comp
Term: 3 years, expiring May 31

The Mechanical license is also held by an individual qualifier. Same 60-day succession rule as RB if the qualifier leaves the company.

Electrical Administrative Board

The Electrical Administrative Board (EAB) inside LARA licenses every electrical worker and every electrical contracting firm in Michigan. Five license types, all with separate experience requirements and separate exams.

Apprentice Electrician: registered, working under a licensed master or journeyman. No exam, just registration and tracking of hours.
Journeyman Electrician: 8,000 hours of documented apprenticeship plus 576 classroom hours, then pass the journeyman exam. Allowed to perform electrical work under a master's supervision.
Master Electrician: 12,000 hours of work as a journeyman plus pass the master exam. Allowed to design installations and supervise journeymen.
Sign Specialist: narrow license for electric sign installation only
Fire Alarm Specialist: narrow license for fire alarm system installation only
Electrical Contractor: the company-level license. Every electrical contracting firm needs at least one master electrician on staff designated as the licensed individual on the contractor license.

Electrical Contractor license requirements

Master electrician on staff: mandatory. The master is the qualifier and their license number is on every permit.
Application fee: $50
Initial license fee: $300
Renewal: every 3 years, $300, due May 31
Continuing education: 15 hours per 3-year cycle for the master, focused on the current Michigan Electrical Code (NEC with MI amendments)
Insurance: not state-mandated, but $500,000 GL minimum is typical for municipal permit issuance
Term: 3 years, expiring May 31

If a contractor's master electrician leaves, the firm has 60 days to designate a replacement. After 60 days the contractor license is suspended and no permits can be pulled until the replacement is documented with EAB.

State Board of Plumbing

The State Board of Plumbing (within BCC) licenses every plumber and every plumbing contractor in Michigan. Same structural pattern as electrical: individual licenses for the workers plus a contractor license for the company.

Apprentice Plumber: registered, working under a master or journeyman
Journeyman Plumber: 4 years (8,000 hours) of apprenticeship plus pass the journeyman exam
Master Plumber: 2 years (4,000 hours) as a journeyman plus pass the master exam
Plumbing Contractor: company license; requires a master plumber on staff
Medical Gas Installer endorsement: additional certification for medical gas piping in healthcare facilities, required by ASSE 6010

Plumbing Contractor license requirements

Master plumber on staff: mandatory qualifier
Application fee: $30
Initial license fee: $300 (3-year)
Renewal: every 3 years, $300, due April 30. (Note: plumbing is the one BCC license that does NOT renew on May 31. It's April 30.)
Continuing education: 8 hours per 3-year cycle for the master, on the current Michigan Plumbing Code
Insurance: not state-mandated, but municipal permit offices uniformly require GL and workers' comp
Term: 3 years, expiring April 30

So: a plumbing contractor renews April 30, an electrical contractor renews May 31, and a mechanical contractor renews May 31. Three separate state cycles a month apart, plus the RB or M&A license also renewing May 31. A design-build remodeler with in-house trades is potentially renewing four state licenses inside a 31-day window. Miss any one and the matching municipal permits stop.

No state commercial GC license

If you build, remodel, or fit out anything other than 1- and 2-family residential, Michigan does not require a state contractor license. No exam, no fee, no continuing education, no LARA paperwork. This sounds like a benefit, and for some scopes it is. But there are three big real-world catches:

Trade work still requires state licenses. Your subcontractors for plumbing, electrical, mechanical, and fire suppression all need their state licenses. You as the GC don't have a license to lose, but the moment any sub's license lapses, the project's permit application is dead at the counter.
Most commercial cities require a contractor registration anyway. Detroit, Grand Rapids, Lansing, Ann Arbor, and Dearborn all run their own contractor registration programs that effectively re-create the licensing function at the city level.
Insurance and bid qualification. Commercial owners and developers won't sign a contract with a GC who has no formal qualification. The substitute is typically a Michigan business license (a basic registration with the Department of Treasury), proof of commercial insurance, and bonding capacity from a surety. Build all three before you bid.

Detroit: BSEED contractor registration

The Detroit Buildings, Safety Engineering, and Environmental Department (BSEED) handles every contractor registration, every permit, and every inspection inside Detroit city limits. Without active BSEED registration, no Detroit permit can be pulled, period.

Detroit General Contractor Registration: $300 annual, requires $1,000,000 general liability minimum, workers' comp, and a $25,000 surety bond
Detroit Wrecking Contractor: $500 annual, plus $50,000 demolition bond and asbestos abatement coordination
Detroit Sign Contractor: $200 annual, separate from the GC registration
Detroit Home Improvement Contractor: $200 annual, $25,000 bond for residential work, mandatory state RB or M&A license also on file
Renewal: calendar-year, December 31 expiration on most categories
Required documents: GL certificate naming the City of Detroit as additional insured, workers' comp, Michigan Department of Treasury good standing, bond rider, and (for HIC) the state RB or M&A license number

BSEED enforces strictly at the permit counter. An expired registration drops a permit application into the rejected queue, and BSEED will not process a re-submission until registration is restored. Detroit also runs a stop-work program: an unregistered contractor caught working in the city receives an immediate stop-work order plus a $1,500 fine, and the property owner is also fined $500 for hiring unregistered.

Grand Rapids, Lansing, Ann Arbor, Dearborn

Grand Rapids Building Inspections: contractor registration $150 annual, $300,000 GL, workers' comp. Separate "Trade Contractor" registration tied to the state mechanical, electrical, or plumbing license. Renewal on December 31.
Lansing Building Safety: $125 annual contractor registration, $300,000 GL, workers' comp. Lansing is one of the smaller cities that audits insurance certificates monthly rather than at renewal.
Ann Arbor Building Department: $200 annual registration, $500,000 GL, workers' comp, and a surprisingly aggressive Historic District Commission process for projects in the Old West Side, Old Fourth Ward, and downtown overlay districts (4 to 8 weeks added on COA review).
Dearborn Building and Safety: $150 annual registration, $300,000 GL, workers' comp, plus mandatory pre-permit meeting for commercial scopes over $100,000.

None of these registrations replace the state RB, M&A, mechanical, electrical, or plumbing license — they sit on top. The GC working a kitchen remodel in Ann Arbor is holding an RB license at the state level, an Ann Arbor contractor registration, and possibly an HDC certificate of appropriateness. Three documents. Three expiration dates. Three opportunities to miss a renewal.

Reciprocity (limited)

Michigan does not participate in NASCLA. The RB exam does not transfer in or out. Coming from Florida or Georgia with a NASCLA Commercial GC qualification, that gets you nothing in Michigan because Michigan's residential license does not have a NASCLA-equivalent commercial counterpart at the state level. Coming from California with a CSLB B General Building license, also nothing — California's exam is California-specific. Coming from Ohio with an OCILB trade license, partial reciprocity exists for individual electrical and plumbing licenses but not for the contractor-level company license.

Michigan does have a narrow reciprocity arrangement with Wisconsin and Indiana for journeyman and master plumbers and electricians, and an arrangement with Ohio and Illinois for journeyman electricians specifically. The contractor-level company license does not reciprocate with any state. Plan to retake the business and law exam regardless.

Workers' compensation

Michigan requires workers' compensation for any employer with 1 or more employees, including part-time. Sole proprietors and partners are exempt for themselves but not for any employee. The Michigan Workers' Disability Compensation Agency (WDCA) inside LARA enforces, and BCC verifies workers' comp status at every state license renewal.

Michigan's statutory employer doctrine makes a GC liable for an unlicensed or uninsured subcontractor's worker injury claims. A GC who hires a 1099 framer who gets hurt on a job is functionally on the hook for that framer's medical and lost-wage benefits, even with a signed independent contractor agreement, if the framer failed to carry their own workers' comp. Verify every sub's certificate of insurance every year, and do not let an uninsured sub onto a job under any circumstances.

Penalties for working unlicensed in Michigan

Unlicensed RB or M&A residential contracting: misdemeanor under MCL 339.601, up to 90 days in jail and a $5,000 fine for individuals, up to $25,000 for corporations. Each separate contract can be charged as a separate offense.
Contract unenforceability: under MCL 339.2412, a residential contract entered into by an unlicensed contractor is void as to the contractor. The contractor cannot sue for payment, cannot file or enforce a construction lien, and cannot defend against a homeowner refund claim. Completed work does not rescue the contract — the homeowner can demand a full refund and keep the work.
Unlicensed electrical work: misdemeanor under MCL 338.883, up to 90 days in jail and a $5,000 fine, plus civil penalties up to $5,000 per violation under EAB enforcement
Unlicensed plumbing or mechanical work: misdemeanor under MCL 338.971 and 338.3514 respectively, with the same penalty range as electrical
Detroit BSEED unregistered: $1,500 fine per violation, mandatory stop-work order, and 30-day waiting period before BSEED will process a new registration application
Grand Rapids, Lansing, Ann Arbor, Dearborn: $500 to $2,500 per violation, plus stop-work, plus denial of any new permit applications until registration is restored
Michigan Consumer Protection Act (MCL 445.901): actual damages, plus injunctive relief, plus attorney's fees, plus civil penalties up to $25,000 per violation in actions brought by the Michigan Attorney General

Unlike the more aggressive complaint-driven boards in California and Florida, LARA enforcement in Michigan is predominantly reactive: complaints from homeowners or competitors trigger an investigation. The bigger real risk is contract unenforceability under MCL 339.2412. Michigan plaintiff's attorneys are well-versed in this provision, and "unlicensed contractor" is a near-automatic defense in any payment dispute on residential work. The fine is bad. Losing the right to collect $80,000 on a completed kitchen remodel is much worse.

Realistic timeline to be licensed and working in Michigan

RB license (first time, including 60-hour pre-licensure): 12 to 16 weeks from starting the pre-licensure course to license in hand. Pre-licensure is the long pole — most candidates take 6 to 8 weeks to complete 60 hours alongside other work.
M&A license, single classification: 10 to 14 weeks, same structure as RB but a narrower trade exam
Mechanical Contractor license: 14 to 20 weeks, with the 3-year experience verification step adding 3 to 4 weeks for previous-employer documentation
Electrical Contractor license (assuming a master electrician is already on staff): 6 to 10 weeks, mostly EAB processing time
Plumbing Contractor license (assuming a master plumber is already on staff): 6 to 10 weeks
Detroit BSEED registration: 3 to 6 weeks after all documentation submitted
Grand Rapids / Lansing / Ann Arbor / Dearborn registration: 2 to 4 weeks each, run in parallel

Total ramp for a new residential GC working out of Detroit: 4 to 5 months and roughly $700 to $1,200 in state and city fees, plus $400 to $800 for the 60-hour pre-licensure course, before insurance and bonds. Start the pre-licensure course first. Schedule the PSI exam the day you finish the 60 hours; PSI seats fill 3 to 5 weeks out in metro Detroit. File the LARA application as soon as the exam result is in hand and use the LARA processing window to line up Detroit BSEED registration documents.

Insurance, bond, and continuing education requirements

Michigan does not impose insurance minimums on the state license itself, which is unusual compared to most other states. Insurance is set at the municipal level and varies by city. Most builders operate at $500,000 to $1,000,000 GL and adjust upward for any project that demands more in the contract.

RB / M&A: no state insurance requirement; $300,000 to $500,000 GL is the typical municipal floor; workers' comp if any employees
Mechanical Contractor: no state insurance requirement; $500,000 GL typical municipal floor
Electrical Contractor: no state insurance requirement; $500,000 GL typical, $1,000,000 for commercial scopes
Plumbing Contractor: no state insurance requirement; $500,000 GL typical, plus a $5,000 to $10,000 bond required by some cities for sewer connection work
Detroit: $1,000,000 GL plus $25,000 bond for GC; lower for HIC and trades
Grand Rapids / Lansing / Ann Arbor / Dearborn: $300,000 to $500,000 GL plus workers' comp

Continuing education is the quiet trap. RB and M&A both require 21 hours per 3-year cycle including 3 hours on the current Michigan Residential Code. Mechanical requires 21 hours including 3 hours on the Mechanical Code. Electrical requires 15 hours including code update. Plumbing requires 8 hours. LARA audits CE at renewal time, and missing hours mean the renewal is rejected; the license stays active until expiration but does not get renewed, and you find out at the May 31 deadline. Track CE on the same calendar as the renewal itself.

Quick cost summary: RB-licensed residential GC working in Detroit

RB pre-licensure course (60 hours): $400 to $800 one-time
RB application: $195 one-time
PSI exam fee: approximately $117 per attempt
RB renewal: $195 every 3 years
RB continuing education: 21 hours, $200 to $500 per cycle depending on provider
Detroit BSEED GC Registration: $300 annual
$1,000,000 GL policy: $1,500 to $3,500 annually for a small residential GC
Workers' comp: varies by payroll and class code, $1,500+ typical annual minimum
$25,000 surety bond (Detroit requirement): $250 to $500 annual premium for good credit
Detroit project permits: per project, typically $200 to $2,000+ depending on scope

Year-one out of pocket: roughly $1,200 in state and city fees plus $400 to $800 for pre-licensure plus $3,500 to $7,500 in insurance and bond premiums. Add 4 to 5 months of pre-licensure, exam, and registration lead time. The 60-hour pre-licensure course is the single longest item; start it before anything else.

Check every permit your Michigan project needs

Michigan contractor licensing is one state agency (LARA) with five separate licensing units, three of which renew on May 31 and one (plumbing) on April 30. A residential GC working out of Detroit is juggling an RB license that renews May 31, a Detroit BSEED registration that renews December 31, a workers' comp policy that LARA can lapse without telling BSEED for 30 days, and 21 hours of continuing education across the 3-year cycle. A design-build firm with in-house mechanical, electrical, and plumbing is doing all of that plus a Mechanical Contractor license (May 31), an Electrical Contractor license (May 31), and a Plumbing Contractor license (April 30). Miss any piece and the next permit application bounces at the counter — sometimes silently, because LARA does not notify BSEED of state license lapses and BSEED does not notify LARA of city registration lapses.

Use the free permit checker to see every license, registration, and permit required for your Michigan construction project. Enter your project address and trade, and get the full agency list with fees, renewal periods, and the actual URLs for LARA Bureau of Construction Codes, the Mechanical Contractors Section, the Electrical Administrative Board, the State Board of Plumbing, Detroit BSEED, and the major Michigan city building departments.

Related reading: how to get a contractor license in California (single statewide board with both residential and commercial scope, the cleanest contrast with Michigan's split), how to get a contractor license in Texas (no state license at all for GC work, the closest peer to Michigan's commercial GC vacuum), how to get a contractor license in New York, how to get a contractor license in Illinois, how to get a contractor license in Pennsylvania, how to get a contractor license in Ohio (closest structural cousin: state licenses the trades, leaves GC to cities), how to get a contractor license in Georgia, how to get a contractor license in North Carolina, how to get a contractor license in Florida, contractor license requirements by state, and what happens when your contractor license expires. Tracking an RB renewal, a Mechanical renewal, an Electrical renewal, a Plumbing renewal one month off the others, a Detroit BSEED registration, a workers' comp audit, a general liability certificate, and 65+ hours of continuing education across four boards by hand is how Michigan contractors end up accidentally lapsed in June and finding out at the Detroit permit desk in July. The PermitDue dashboard puts every deadline in one place and sends reminders at 90, 60, 30, and 7 days so no single renewal can quietly fall off the list.