Michigan Residential Builder License: Who Needs One and How to Get It (2026)
Who needs a Michigan residential builder or maintenance and alteration license, the $600 rule, the 60-hour course, the exam, fees, renewal, and penalties.
In Michigan, anyone who contracts for residential construction or repair work worth $600 or more, counting labor and materials, needs a state license: either a residential builder license or a maintenance and alteration (M&A) contractor license. To get one, you complete 60 hours of approved prelicensure education, pass a state exam, and apply through the Michigan Department of Licensing and Regulatory Affairs (LARA). Electrical, plumbing, and mechanical work need their own separate trade licenses no matter the job size.
We dispatch more than 1,500 repair and maintenance jobs a year to Detroit-area contractors, so we see the licensing question from both sides: contractors asking whether they need one, and property owners asking whether the person fixing their house has one. This guide covers both. It's a practical overview, not legal advice, and fees and rules can change, so confirm details with LARA before you apply.
Who needs a residential builder license in Michigan?
Michigan's Occupational Code requires a license for anyone who, for pay, builds, remodels, repairs, or improves a residential structure when the total contract price for labor, materials, and everything else on that one project is $600 or more (MCL 339.2403).
A few points trip people up:
- The $600 counts the whole project. Labor and materials together, not just your labor.
- You can't split a job to stay under it. Breaking one project into several contracts under $600 to avoid licensing is prohibited.
- It applies to residential work. Houses, duplexes, and similar residential buildings. Commercial work follows different rules.
- Working as an employee is different. If you work on a licensed contractor's crew as their employee, the license that matters is your employer's. Contracting directly with homeowners or property managers is what triggers your own license requirement.
What is the difference between a residential builder and an M&A license?
| Residential builder | Maintenance and alteration contractor | |
|---|---|---|
| What it covers | New homes, additions, remodels, and general contracting across trades | Repairs and alterations in the specific trades you're licensed for |
| Scope | Can contract for whole projects and subcontract trades | Limited to your licensed trade categories |
| Typical holder | General contractors, remodelers, home builders | Roofers, painters, siding and gutter installers, carpenters, concrete and masonry contractors |
| Prelicensure education | 60 hours | 60 hours |
If you do one trade, like roofing or painting, an M&A license in that trade is usually the right fit. If you run whole renovations, manage multiple trades, or build homes, you need the residential builder license.
What licenses do plumbers, electricians, and HVAC contractors need?
Electrical, plumbing, and mechanical (heating, cooling, and refrigeration) work are licensed separately by the state's Bureau of Construction Codes under their own laws. The $600 exemption doesn't apply to them, and a residential builder license doesn't let you do that work yourself. A builder who runs a renovation hires licensed trade contractors for those parts, and most of that work also needs permits.
How do you get a Michigan residential builder license?
The steps are the same for residential builder and M&A applicants:
- Complete 60 hours of prelicensure education from a LARA-approved provider. The course covers business management, estimating and job costing, design and building science, contracts and liability, marketing and sales, project management, the Michigan Residential Code, and construction safety.
- Schedule and pass the exam. The state exam is administered by PSI. Applicants have to pass both the business and law portion and the trade portion.
- Submit your application to LARA with the application fee. You'll need to meet the age and good moral character requirements and provide identification.
- Receive your license and keep your license number handy. Customers, permit offices, and property managers will ask for it.
Costs to budget. Expect to pay for the prelicensure course, which varies by provider, plus the exam fee and the state application fee. Current published figures put the LARA application fee at $195 and the PSI exam fee at $117, but confirm both before you apply, since fees change.
How do you renew a Michigan builder license?
Residential builder and M&A licenses renew on a three-year cycle. You'll need continuing education before each renewal:
- Licensed fewer than six years: 21 hours per three-year cycle.
- Licensed six years or more: 3 hours per cycle.
Every cycle must include at least one hour each on building codes and laws, safety, and changes in construction and business law.
What happens if you contract without a license in Michigan?
The consequences are serious, and the biggest one hits your wallet:
- You can't sue to get paid. An unlicensed contractor can't sue to collect payment or file a construction lien for work that required a license (MCL 339.2412). If a customer refuses to pay, you may have no legal remedy.
- It's a crime. Unlicensed residential contracting is a misdemeanor under the Occupational Code, with fines that start at $5,000 for a first offense and possible jail time.
- You lose work. Property managers, insurers, and city permit offices increasingly ask for a license number before the job starts.
How do you verify a contractor's license in Michigan?
If you own a rental or a home, check any contractor's license before you sign a contract worth $600 or more. LARA offers a free online license lookup at michigan.gov/statelicensesearch. Search the contractor's name or license number and confirm:
- The license is active, not expired or suspended.
- The license type covers the work. An M&A license in painting doesn't cover a roof.
- The name matches the person or company on your contract.
Also ask for proof of liability insurance and, if they have employees, workers' compensation coverage. Our Detroit property maintenance service handles this vetting for owners who'd rather not chase it themselves.
Do you need a license to work with a Detroit property manager?
It depends on the work and how it's billed. A small repair under $600 that doesn't involve electrical, plumbing, or HVAC work generally doesn't require a state license. Larger jobs and trade work do.
If you're a Detroit-area contractor who shows up, communicates, and does clean work, join our vendor network. We send plumbing, electrical, HVAC, and general repair work on Detroit homes year-round, with tenant scheduling and photos handled on our side and on-time pay. Every vendor provides a W-9 before receiving payment.
Frequently asked questions
Do I need a license to do handyman work in Michigan?
You need a residential builder or maintenance and alteration license if a single project's total price, including labor and materials, is $600 or more. Electrical, plumbing, and HVAC work need their own trade licenses regardless of price.
How long does it take to get a Michigan residential builder license?
Most applicants finish in a few weeks to a couple of months. The 60-hour course can be done online at your own pace, then you schedule the exam and submit your LARA application.
How much does a Michigan builder license cost?
Budget for the prelicensure course, the exam, and the state application fee. Published figures put the LARA application fee at $195 and the PSI exam fee at $117, but check current fees with LARA and PSI before you apply.
Is the Michigan residential builder exam hard?
It's a two-part exam covering business and law plus trade knowledge, and you need to pass both. The prelicensure course is built around the exam topics, but plan to study rather than walk in cold.
Can an unlicensed contractor sue for payment in Michigan?
No. If the work required a license, an unlicensed contractor can't sue to collect payment or file a construction lien for it.
Does a residential builder license let me do electrical or plumbing work?
No. Electrical, plumbing, and mechanical work are separately licensed trades. A residential builder hires licensed trade contractors for that work.