Michigan general contractor license

1. Who needs a license

$600 or more for a job (labor and materials) means a license is needed. (source: MCL 339.2403 (opens in a new tab), source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

Residential builders and maintenance & alteration contractors need a LARA license, unless the total price of the project is less than $600. (source: MCL 339.2403 (opens in a new tab), source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

• The $600 exemption does not apply if the job is part of a larger operation or split into smaller contracts to avoid the law. (source: MCL 339.2403 (opens in a new tab))
• Licensed electrical contractors are exempt for electrical work. (source: MCL 339.2403 (opens in a new tab))

Penalties

• First offense: misdemeanor, $5,000 to $25,000 fine, up to 1 year in jail. Later offenses: up to 2 years. Causing death or serious injury: felony, up to 4 years. (source: MCL 339.601 (opens in a new tab))

2. General contractor license classes

3. Fees, exam, bond and insurance

Fees

Fees are set by the board and can change. Check the official fee page before you pay.

Experience and steps

1. Take prelicensure education Complete 60 hours of approved courses before the exam or application. (source: Michigan LARA: Prelicensure Education Requirements (opens in a new tab))
2. Apply to LARA Send the application with the fee. You need a physical Michigan business address, not a P.O. box. (source: Michigan LARA: Residential Builder and M&A Contractor application (opens in a new tab))
3. Pass the PSI exam PSI contacts you to schedule once you're approved. (source: Michigan LARA: Prelicensure Education Requirements (opens in a new tab))
4. License the company The application is for an individual. Once licensed, you can add a company. (source: Michigan LARA: Residential Builder and M&A Contractor application (opens in a new tab))

Exam

An exam is required. Exams are run by PSI. (source: Michigan LARA: Prelicensure Education Requirements (opens in a new tab))

• PSI tests at 5 centers across Michigan, 6 days a week. (source: Michigan LARA: Prelicensure Education Requirements (opens in a new tab))

Bond

We're still verifying this, check the official board: LARA website (opens in a new tab).

Insurance

We're still verifying this, check the official board: LARA website (opens in a new tab).

Renewal

Check renewal and continuing education rules with LARA. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

4. How to look up a contractor

Check a license on the LARA website ↗ (official site, opens in a new tab)

How: Search LARA's license database for the builder or contractor, or call the Residential Builders' Section at 517-241-9309. (source: Michigan LARA license lookup (opens in a new tab), source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

More ways to check

• The M&A trades a contractor may do are listed on the license. Ask to see the pocket card. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))
• Call the Residential Builders' Section at 517-241-9309. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))

Full checklist: how to check a contractor

5. Reciprocity (license transfer)

We're still verifying this, check the official board: LARA website (opens in a new tab).

Use the reciprocity checker

6. Red flags when hiring

• Can't show a pocket license card. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))
• Wants the whole job paid in advance. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))
• No permanent business address or phone number. (source: Michigan LARA: Helpful Information for Homeowners (opens in a new tab))
• Splits a job into contracts under $600. (source: MCL 339.2403 (opens in a new tab))

7. How to complain

We're still verifying this, check the official board: LARA website (opens in a new tab).