How to Become a Licensed Michigan Builder
If you’re thinking about joining the construction industry in Michigan, it’s important to know that you’ll have to meet some pretty strict licensing requirements. While not everyone who’s working on a residential construction or remodelling project must have a licence, the threshold is quite clear: as long as the project is valued at $600 or more, you’ll need a licence.
This will be either the Michigan residential builder’s licence or a maintenance and alteration (M&A) contractor licence. You can get both from the Department of Licensing and Regulatory Affairs (LARA) through the Bureau of Construction Codes (BCC). Here’s what you should know about that.
First, Who Needs a Michigan Builder’s Licence?
Michigan’s Occupational Code makes it clear that any company or individual performing construction, improvement, or even repair work that exceeds $600 should have a valid builder or contractor licence. You should obtain the residential builders licence if you’re managing entire residential projects, and the maintenance & alteration licence if you’re targeting specific trades like roofing, insulation, and siding.
Keep in mind that a residential builder licence not only allows you to oversee and contract full home builds and renovations, but also to hire subcontractors and manage multiple trades under a project. Regardless of the type you are interested in, you must take a Michigan builders license course from a reputable provider like RocketCert. This ensures you gain updated knowledge in the areas you will be working in.
And just in case you’re wondering what would happen if you take on projects while being unlicensed, you will more than likely end up with fines, revoked permits, and, in the more serious cases, criminal penalties. More importantly, working as an unlicensed contractor limits your ability to collect payment or advertise your service legally.
So, How Do You Get Licensed?
The steps are quite easy, but this may vary depending on who you are asking.
1. Meet the Basic Eligibility Requirements
Before applying, you must ensure that you:
- Are at least 18 years old
- Have a valid SSN or EIN
- Are financially responsible
- Don’t have any criminal convictions that will disqualify you
2. Complete the Required Pre-Licensing Education
Michigan takes builder education seriously. Before qualifying for the licensing exam, you are required to complete an approved 60-hour Michigan builders’ licence course. The course covers a mix of technical, legal, and business topics, including:
- Michigan Residential Code
- Construction safety and health
- Estimating and project management
- Design and building science
- Contracts, liability, and risk management
- Business law and marketing
- Business management and accounting
You have the option to take this course online through professional training providers or in person through approved community colleges or vocational schools.
3. Submit Your Application to LARA
After completing your pre-licensing course, you must first submit a completed licence application to LARA. You can do this in one of two ways: mail your printed application to LARA (include a copy of your driver’s licence or state personal identification card) or submit the entire application online.
You’ll need:
- Proof that you’ve completed the 60-hour course
- Valid photo ID or business registration
- Proof of general liability and workers’ compensation insurance
- $195 application fee
If your application goes through, you will receive authorisation from the board to schedule your exam.
4. Pass the PSI Builder’s Licence Exam
Every residential builder applicant must complete a practice/trade and business/law combination licensing exam. The exam is conducted by PSI and typically has 110 residential trade questions and 50 business and law questions. You are supposed to complete the exam in 240 minutes, and must answer at least 116 questions out of the 160 correctly to pass.
Remember that this is a closed-book exam, so you’re not supposed to bring any reference materials with you to the examination centre. If you’re an M&A applicant, you will have to pass a separate exam for every trade you are interested in. These exams usually have 25-50 trade questions and 50 business law questions. The time limit is 135 minutes.
5. Maintaining Your Licence
After passing the exam and successfully passing all the checks, you’ll be issued a licence that you must renew every three years by May 31. You must take continuing competency courses as part of the renewal requirements. This ensures you remain updated on evolving building codes and safety regulations.
Newly licensed builders are supposed to complete 21 hours of continuing education during their first renewal cycle. Once you remain licensed for more than six years, however, you will need at least three CE hours in every renewal cycle. Make sure to take your courses from a LARA-approved provider.
Taking the Next Step
Earning your Michigan builders’ licence is a great achievement and a strong statement of professionalism. It tells your clients and partners that you’re serious about your craft and are committed to building safely and ethically, guided by the current code. Once you’re licensed, you will have the rights to work on larger projects, charge what you’re worth, and build a lasting business.
RocketCert, as one of the top education providers approved by LARA, gets you there through expertly written and fully narrated online pre-licensing and CE courses. So if you’re ready to start your journey, now’s the time to head over to rocketcert.com to see what they offer.
