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Michigan issues a residential builder license and a residential maintenance and alteration contractor license under Article 24 of its Occupational Code, through the Bureau of Construction Codes at LARA. Work on one project under $600.00 in aggregate is exempt, except as part of a larger operation or split to evade the act. Applicants pass an exam, and as of April 17, 2026, the application fee is $195 per application.
Michigan · Contractor licenseVerified 2026-10-04
State license
Residential builder license; residential maintenance and alteration contractor license (residential)
Article 24 of Michigan's Occupational Code licenses residential builders, who undertake the erection, construction, repair, alteration, improvement or demolition of a residential structure, and residential maintenance and alteration contractors, who undertake the repair, alteration, improvement or demolition of a residential structure, the building of a garage or the laying of concrete on residential property.
An examination establishing a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and of the statutes relating to the applicant's licensure
Residential builder license; residential maintenance and alteration contractor license (residential). Article 24 of Michigan's Occupational Code licenses residential builders, who undertake the erection, construction, repair, alteration, improvement or demolition of a residential structure, and residential maintenance and alteration contractors, who undertake the repair, alteration, improvement or demolition of a residential structure, the building of a garage or the laying of concrete on residential property.
Threshold. The licensing article exempts a person working on 1 undertaking or project, by 1 or more contracts, whose aggregate contract price for labor, material and any other items is less than $600.00. The exemption does not apply when the work is only part of a larger or major operation, or when the operation is divided into contracts of less than $600.00 to evade the act.
(6) Notwithstanding subsections (4) and (5), a person that is not licensed under article 24 as a residential builder or a residential maintenance and alteration contractor and that violates subsection (1) or (2) is guilty as follows:
undertakes with another or offers to undertake, or purports to have the capacity to undertake with another, for the erection, construction, replacement, repair, alteration, or addition to, subtraction from, improvement, wrecking of, or demolition of, a residential structure.
(i) Undertakes with another for the repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure, or building of a garage, or laying of concrete on residential property.
(f) A person that is working on 1 undertaking or project by 1 or more contracts, if the aggregate contract price for the labor, material, and any other items for the undertaking or project is less than $600.00.
The exemption described in this subdivision does not apply if the work of a construction is only a part of a larger or major operation, whether undertaken by the same or a different residential builder or residential maintenance and alteration contractor, or in which a division of the operation is made in contracts of amounts less than $600.00, to evade this act.
Undertakes, or offers to undertake, with another for the erection, construction, replacement, repair, alteration, or addition to, subtraction from, improvement, wrecking of, or demolition of, a residential structure
Undertakes with another for the repair, alteration, or addition to, subtraction from, improvement of, wrecking of, or demolition of a residential structure, or building of a garage, or laying of concrete on residential property; the license specifies the particular craft or trade
Exam. An examination establishing a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and of the statutes relating to the applicant's licensure. Source: MCL 339.2404(2)
Other. Unless exempt, 60 hours of approved prelicensure courses before an initial license, including at least 6 hours in each listed area of competency. Source: MCL 339.2404b(1)(c)
Other. A place of business in Michigan. Source: MCL 339.2404(4)
(2) Except as provided in section 2404c, the department shall require that an applicant for a license under this article pass an examination that establishes that the applicant has a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and the applicant's principal, and the statutes relating to the applicant's licensure.
(c) Unless he or she is exempt under subdivision (a) or (b), an applicant must not receive an initial license under this act unless he or she successfully completed 60 hours of approved prelicensure courses that include at least 6 hours of courses in each of the following areas of competency:
Term and renewal. The license of a residential builder and of a residential maintenance and alteration contractor is issued for a period of 3 years.
Continuing education. A licensee first licensed on or after January 1, 2009 completes at least 21 hours of continuing competency activities in each 3-year license cycle, with at least 3 hours in each calendar year during the first 6 calendar years of licensure. A licensee who has held a license for more than two 3-year license cycles, with no disciplinary action under the act, completes at least 3 hours in each license cycle, including 1 hour each of codes, safety and legal issues.
(5) The department shall issue the license of a residential builder and residential maintenance and alteration contractor for a period of 3 years in duration.
(a) Subject to subdivision (b), if the individual licensee obtained his or her initial license as a residential builder or a residential maintenance and alteration contractor on or after January 1, 2009,
he or she must successfully complete at least 21 hours of activities that demonstrate continuing competence in each 3-year license cycle, including both of the following: (i) At least 3 hours of activities that demonstrate continuing competency in each calendar year, during the first 6 calendar years of licensure.
(d) If the licensee has held a license for more than two 3-year license cycles, and the department has not taken disciplinary action against him or her for a violation of this act or a rule promulgated under this act, he or she must successfully complete at least 3 hours of activities demonstrating continuing competency in each license cycle that includes 1 hour of codes, 1 hour of safety, and 1 hour of legal issues as described in this subsection.
A person not licensed under article 24 as a residential builder or residential maintenance and alteration contractor who violates the licensing requirement is guilty of a misdemeanor for a first offense, punishable by a fine of not less than $5,000.00 or more than $25,000.00, imprisonment for not more than 1 year, or both; for a second or subsequent offense, a misdemeanor with the same fine range and imprisonment for not more than 2 years, or both; and for an offense that causes death or serious injury, a felony with the same fine range and imprisonment for not more than 4 years, or both.
(a) In the case of a first offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 1 year, or both.
(b) In the case of a second or subsequent offense, a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 2 years, or both.
(c) In the case of an offense that causes death or serious injury, a felony punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than 4 years, or both.
Michigan's licensing here is residential only. Article 24 of the Occupational Code sets out two credentials, a residential builder license and a residential maintenance and alteration contractor license [1][2]. Both are handled by the Licensing Section of the Bureau of Construction Codes within the Michigan Department of Licensing and Regulatory Affairs (LARA).
The builder credential covers the erection, construction, repair, alteration, improvement and demolition of a residential structure, among other work its definition lists [2]. The maintenance and alteration credential covers repair, alteration, improvement or demolition of a residential structure, along with building a garage or laying concrete on residential property [2]. Erection and construction appear only in the builder's scope.
There is a floor. The article exempts a person working on one undertaking or project, under one or more contracts, when the combined contract price for labor, material and other items is less than $600.00 [3]. That exemption falls away when the job is only part of a larger or major operation, or when an operation is split into contracts under $600.00 [3] to evade the act.
Two credentials, one set of qualifications
For the maintenance and alteration contractor class, the license specifies the particular craft or trade [4].
The qualifications are shared. Applicants for either credential pass an examination on the obligations a licensee owes the public and their principal, and on the statutes governing their licensure [4]. Before an initial license, and unless an exemption in the statute applies, an applicant completes 60 hours of approved prelicensure courses, with at least 6 hours [5] in each listed area of competency. A licensee also keeps a place of business in Michigan [4].
Cost, term and renewal
As of 2026-04-17, the application for residential builders or maintenance and alteration contractors license is $195 per application [6]. As of 2026-04-17, the renewal (builder, M&A/sales, branch office) fee is $150 per renewal [6].
Each license runs for 3 years [4]. Continuing competency depends on when and how long someone has been licensed. A licensee first licensed on or after January 1, 2009 completes at least 21 hours of continuing competency activities per 3-year cycle, including at least 3 hours in each calendar year over the first 6 calendar years [5] of licensure. Once a licensee has held a license for more than two 3-year cycles with no disciplinary action under the act, the requirement drops to at least 3 hours per cycle, made up of 1 hour each [5] on codes, safety and legal issues.
Penalties in the Occupational Code
Section 339.601 of the Michigan Compiled Laws sets graded penalties for a person not licensed under Article 24 as a residential builder or residential maintenance and alteration contractor who violates the licensing requirement [1]. The fine range is the same at every level, from $5,000.00 to $25,000.00 [1]; what changes is the classification and the jail exposure. A first offense is a misdemeanor carrying up to 1 year of imprisonment [1]. A second or later offense is a misdemeanor with up to 2 years [1]. An offense that causes death or serious injury is a felony with up to 4 years [1]. At each level the statute allows the fine, the imprisonment, or both.
