Michigan Builders License Education

If you're interested in becoming a licensed builder in Michigan, you first need to decide what type of construction you're interested in doing. The state's Department of Licensing and Regulatory Affairs (LARA) issues different license types that cover different scopes of work and project values. 

So do you need a builder's license to do the type of work you're thinking about? If so, what license type should you get? 

Let's take a look. 

Who needs a builder's license in Michigan?

We won't ask you to dig into the state Occupational Code to find this answer. Instead, we did the research for you. 

Article 24 of Public Act 299 of 1980 dictates that you need to be licensed by the state to perform construction of a residential structure or combination residential and commercial structure. It also stipulates licensure for persons who undertake the repair, alteration, addition, subtraction, or improvement of a residential structure or combination residential and commercial structure for compensation other than wages for personal labor.

Does that mean you need a builder's license to do a remodel on your own kitchen? No. Section 2403 of that same code says there are a few exceptions where you won't need licensing. Specifically, you don't need a license if you're:

• Doing work on a property you own

• An authorized government representative or an officer of the court

• Working on a project where the contract is less than $600

• A licensed plumbing contractor performing plumbing work

• A licensed mechanical contractor performing mechanical work

Generally, though, if you plan to make more than 600 dollars and work on projects outside of a property you own, you'll need to be licensed by the state.

Now, that begs the question, which license type do you need? There are two primary types of Michigan builder's licenses. Let's take a look at each.

Michigan residential builders license

This is the primary type of builder's license in Michigan. As a residential builder, you can take on projects greater than $600. This license covers work on residential structures (obviously) and structures that combine residential and commercial space. To work on exclusively commercial buildings, you might need a commercial license (there's more on that in the section below). 

This license covers work like demolition, improvements, repairs, and replacements. But you'll need to hire subcontractors with the appropriate licensing for specific work like plumbing and electrical. 

Michigan maintenance and alteration contractors license

These licenses are more specialized. Specifically, your license will list a trade or craft (or multiple trades or crafts) in which you're licensed to work. Maintenance and alteration licenses can cover work in the following areas:

• Basement waterproofing 

• Carpentry

• Concrete

• Excavation

• Gutters

• House wrecking

• Insulation work

• Masonry

• Roofing 

• Screens and storm sash

• Siding

• Swimming pools

• Tile and marble

If you're interested in working in any of the above areas, this is the license type you'll need. 

Michigan commercial builders license

Wait, didn't we say there were two types of Michigan builder's license. Yes. But people commonly wonder if they'll need a specific license to do commercial work. 

Commercial contracting is regulated at a local level throughout the state. Check with your city or county government to find out if you'll need a specific license to work on commercial structures like office buildings and factories. 

What are the license requirements for builders in Michigan?

Now that you know the type of license you'll need, you're probably wondering how to get it. Here's what you need to know. 

Michigan prelicensure courses

To be eligible for either a residential builders license or a maintenance and alterations license, you'll need to take 60 hours of pre-license education courses. During those hours, you need at least six hours on each of the following:

• Business management, estimating, and job costing

• Design and building science

• Contracts, liability, and risk management

• Marketing and sales

• Project management and scheduling

• The Michigan Residential Code

• MIOSHA construction safety standards

LARA approves certain education providers to offer courses on these topics. The goal is to have you learn what you'll need to know to safely perform your work well. 

Michigan builders license application

Next up, send in your application along with the $195 fee. Once your application is approved, LARA will issue you an authorization to test letter. You'll need it for the next step. 

Michigan contractors license test

Both license types need to pass an exam to get licensed. An organization called PSI proctors the exam. You can learn more about the exam you'll need at their website based on the license type you're pursuing:

• Exam information for residential builders

• Exam information for maintenance and alterations licensees

In the top-right corner of those pages, you'll see a button that says Download Candidate Information Bulletin. That will download a PDF that has a bunch of helpful information about the exam. The bulletin walks you through the topics the exam will cover, the number of questions on each topic, and other useful information. 

Licensing fees

As we already mentioned, there's a $195 fee for applying to get your license. And you'll need to pay for your pre-license education, too (budget around $400 there). Finally, you'll pay a fee to take the exam. The residential builder's exam costs $117. Maintenance and alterations licensees will pay at least $70 for the exam, depending on how many trades/crafts they want to get licensed in. 

How hard is the Michigan builders license test?

The test is pretty extensive, but your pre-license education should teach you everything you need to know to pass. Pay attention during your course hours to prep for the test. 

You don't need to ace the exam, either. Let's take the residential builder exam, for example. It consists of 160 questions, but you only need to get 116 right to pass. 

Do roofers need a license in Michigan?

Yes, roofers need to get licensed by LARA. To legally do this type of work, you'll get a maintenance and alterations license with roofing as your specified trade. 

What are the steps to getting a Residential Builder or Maintenance & Alteration Contractor license?

1. Complete our 60-hour course at your own pace, on your own schedule.

2. Apply for licensure with the Michigan Department of Licensing and Regulatory Affairs by submitting a license application and the application fee

3. Receive an 'authorization to test' letter from the state

4. Contact PSI Services LLC to register for the exam

5. Take and pass both portions of the PSI exam

As a LARA-approved pre-license education provider, our 60-hour pre-license course will prepare you for the PSI exam.