Get Your Michigan Residential Builders License

Published on September 3, 2024 by Nate Bortz

This article explains how to obtain a residential builder or maintenance and alteration (M&A) contractor license in MI. We review the licensing requirements, outline the education options, and show you how to apply. 

License Definitions

The Michigan Department of Licensing and Regulatory Affairs (LARA) defines residential builders and M&A contractors as persons engaged in the construction of a residential structure or combination of residential and commercial structures.  

They also include persons who undertake the repair, alteration, addition, subtraction or improvement of a residential structure or combination of residential and commercial structures for compensation other than wages for personal labor. 

In general, a person who contracts with a property owner to do residential construction or remodeling on a project whose total value is $600 or more, including material and labor, is required to be licensed as either a residential builder or a maintenance and alteration contractor. 

Pre-Licensure Education Requirements in Michigan 

These are the requirements for a contractor’s license in Michigan.   

All applicants must complete 60 hours of approved prelicensure education before taking the examination or applying for a license. 

The 60 hours of course material needs to cover the following subjects: 

• Business Management, Estimating, and Job Costing (6 hours) 
• Design and Building Science (6 hours) 
• Contracts, Liability, and Risk Management (6 hours) 
• Marketing and Sales (6 hours) 
• Project Management and Scheduling (6 hours) 
• The Michigan Residential Code (6 hours) 
• MIOSHA Construction Safety Standards (6 hours) 
• The remaining 18 hours can come from other topics on the approved course list. 

Online Prelicense Course Options 

If you’re thinking to yourself, “I’m busy. I don’t have time to sit in a classroom for hours on end!” We understand. That’s why we created 100% online 60-hour prelicense and exam prep course bundles. 

We designed the courses to accommodate your busy schedule. They include interactive video lessons that you can start and stop whenever you want. All course material is state-approved (#364-CP3018) and available 24/7 from any device with an Internet connection. 

Courses included in our prelicense bundle include: 

• Overview Of Building Trades 
• Business Of Building 
• Residential Code Review 
• Project Management 
• Residential Construction Safety 
• Building Green 
• Marketing For Building Contractors 
• Contracts, Liabilities and Risk Management 
• Safety-Best Practices 

Apply for Your License 

After completing a 60-hour prelicense course and getting a certificate of completion, you can apply for a license. LARA offers two application options: printed or online. 

You mail the printed application to LARA and must include a copy of your driver’s license or state personal identification card, the prelicense course certificate of completion, and a check for the nonrefundable license fee. 

Online applications require creating an account with LARA’s online licensing portal. Once logged in, the process is straightforward. 

1. Click BCC Licenses then Apply for a License – Amendment. 

2. Read the disclaimer, check the certification box, and click continue to proceed. 

3. Select the Building License Applications record type then click Individual Builder Application or M&A Individual Application. 

4. Enter your information and answer the requested questions within the body of the application. 

5. After answering all the required questions, you can review your application, check the certification box, and click Continue Application. 

6. Your application is now submitted! 

Michigan Builders License Exam 

Residential builder applicants must complete a Practice/Trade and Business/Law combination licensing exam. The exam includes 50 Business and Law questions and 110 Residential Trades questions. You will have 240 minutes to complete it, and you must get 116 questions correct. Exams are closed book, and no reference materials are allowed into the examination center. 

M&A applicants must pass a separate exam for each trade they wish to be licensed in. Each exam consists of 25-50 trade questions and 50 business law questions, and it has a 135-minute time limit. 

Here’s an overview of each trade exam, each requiring a score of around 72% or more to pass: 

• Basement & Waterproofing: 100 questions 
• Carpentry: 100 questions 
• Concrete: 105 questions 
• Excavation: 90 questions 
• Gutters: 85 questions 
• House Wrecking: 75 Questions  
• Insulation Work: 100 questions 
• Masonry: 100 questions  
• Roofing: 100 questions 
• Siding: 95 questions 
• Screen & Storm Sash: 85 questions 
• Tile & Marble: 100 questions 

PSI conducts examinations. It contacts approved applicants to schedule their examination at a PSI testing center. Centers are located in Dearborn, Holt-Lansing, Southfield, Grand Rapids, Gaylord, and Marquette. Applicants can choose their testing center and day of examination. All examination fees must be paid at the time an examination is scheduled. 

On exam day, PSI strongly recommends that you arrive at your exam center at least 30 minutes before your appointment for sign-in and identification verification. You must provide two forms of identification: a valid form of government-issued photo identification (driver’s license, state ID, passport) with your signature and an ID with your signature and preprinted legal name (credit card, social security card). 

Exam Prep 

Our online exam prep course guides you through the reference materials and industry standards outlined in the PSI Candidate Bulletin. The audio courses cover the business and law and trades exams and will help ensure you pass. Additionally, the courses include practice tests to help you determine what you need to keep reviewing and memorize for the exam. 

The exam prep course comes bundled with our prelicense package, or you can purchase it individually. Don’t let test-taking anxiety interfere with your licensing journey. Let our exam prep course help!

Contact Us for Help 

No matter where you are in your licensing journey, you’re not alone! Our dedicated customer service team is available by phone, email, or live chat. We’re glad you’re considering taking the first step toward becoming a licensed residential builder or M&A contractor! Wherever you want your career to go, let us help! Click here to find the course bundle that’s best for you.