Michigan Residential Builder License Requirements (2026)

The Michigan Department of Licensing and Regulatory Affairs (LARA) Bureau of Construction Codes licenses residential builders statewide under Article 24 of the Michigan Occupational Code (MCL 339.2401 et seq.). Any person who contracts with a property owner to build, alter, repair, improve, move, or demolish a residential structure or a residential combination structure for a contract price of more than $600 in labor and materials must hold a Residential Builder License. There is no statewide license for commercial general contracting in Michigan; commercial work is governed by local building department permitting and the Michigan Building Code. Michigan does not require prior experience to sit for the residential builder exam, but applicants must complete a 60-hour LARA-approved pre-license course and pass the PSI Residential Builder Examination at 70%.

Governing Authority

Under Michigan Occupational Code, MCL 339.2401 et seq. (Article 24 — Residential Builders); Skilled Trades Regulation Act, MCL 339.5101 et seq., Michigan Department of Licensing and Regulatory Affairs — Bureau of Construction Codes (LARA BCC) is the body that issues this license and enforces compliance with it. LARA Bureau of Construction Codes administers Michigan licensing for residential builders, electricians, plumbers, and mechanical contractors through its trade-specific boards, adopts the Michigan building, electrical, plumbing, and mechanical codes, and conducts disciplinary proceedings.

Official portal: https://www.michigan.gov/lara/bureau-list/bcc
Address: P.O. Box 30254, Lansing, MI 48909
Phone: (517) 241-9313

Eligibility Requirements

At a minimum the applicant has to be 18 years old and supply a valid Social Security Number. No Michigan residency requirement.

Good moral character

LARA evaluates good moral character on every applicant under MCL 339.204. Felony convictions and prior license revocations are reviewed individually and do not automatically disqualify.

Background investigation

Mandatory criminal history disclosure on the application. LARA may request court records, certificates of disposition, or letters of explanation.

Disqualifying conditions

Felony convictions related to fraud, theft, or dishonesty within the prior 10 years
Prior residential builder license revocation in any state
Outstanding judgments related to construction contracts

Experience & Education Matrix

No fixed number of years of experience is set out in the cited sources for this credential; instead, the controlling requirement is Michigan does not require prior construction experience to qualify for the Residential Builder License. The 60-hour pre-license course substitutes for an experience requirement..

Accepted proof of experience or eligibility

60-hour LARA-approved pre-license course completion certificate
High school diploma or GED (recommended but not required)

Education substitution

The 60-hour pre-license course is itself the qualifying education. There is no separate experience requirement to waive.

Examination Structure

PSI Services LLC (under contract to LARA) runs the examination for this credential. Issuance is contingent on passing every part below:

PSI Michigan Residential Builder Business and Law Examination — 50 questions, 110 minutes, passing score 70%
PSI Michigan Residential Builder Trade Examination — 60 questions, 180 minutes, passing score 70%

Examination fee: $117 total examination fee paid to PSI when scheduling.

Retake policy: Failed parts may be re-taken individually by paying a new $59 part fee. Passed parts remain valid for 12 months while the applicant retakes the failed portion.

Insurance & Financial Security

The cited state source set does not require a contractor license surety bond for this credential. Contractors should still confirm project-specific bond, permit-bond, or public-works bond requirements before bidding.

General liability

LARA does not impose a state-level general liability minimum for Residential Builders. Most homeowners and lenders contractually require $300,000 to $1,000,000 of general liability coverage.

Workers' compensation

Workers' compensation insurance is mandatory in Michigan under the Worker's Disability Compensation Act (MCL 418.101 et seq.) for any business with one or more employees working 35 or more hours per week for 13 weeks or more in a 52-week period.

Additional financial requirements

No financial statement or net worth requirement is imposed by LARA for the Residential Builder License.

Application and License Fees

Fee	Amount
Application (non-refundable)	$185
Examination	$117
Initial license	$185
Renewal (every 3 years)	$185

Maintenance & Renewal

Expect to renew the Michigan Residential Builder License every 3 years. Renewal currently costs $185. Michigan Residential Builder Licenses renew on a three-year cycle keyed to the licensee birth date.

Continuing education: 21 hours of LARA-approved continuing competency credit each three-year renewal cycle, including a mandatory three-hour code update.

Downloadable Asset

2026 Michigan General Contractor License Roadmap (PDF) — a printable step-by-step checklist for the application process.

Download the PDF roadmap →

Reciprocity and Endorsement

Michigan does not accept the NASCLA Accredited Examination for this classification.

Reciprocal State	Accepted Exam	Conditions
Wisconsin	Limited bilateral	Limited bilateral recognition of comparable Wisconsin Dwelling Contractor credentials. Michigan-specific business and law portion still required.
Ohio	Limited bilateral	Limited bilateral recognition for Ohio residential builders in good standing. Michigan exam still required for commercial-equivalent work.
Illinois	Limited bilateral	Limited bilateral recognition for Illinois roofing and home repair contractors operating cross-border.

Michigan does not accept the NASCLA Accredited Examination for Residential Builders. Reciprocal applicants from neighboring states must still pass the Michigan business and law portion of the exam.

Weighing more than one jurisdiction? The national hub compares General Contractor license requirements in every state — exam, bond, fee, and experience thresholds side by side.

Step-by-Step Application Roadmap

Complete the 60-hour LARA-approved pre-license course. The course must come from a LARA-approved provider and cover business management, estimating, contracts, MIOSHA, and the Michigan Residential Code.
Submit the LARA Residential Builder application. File the application with the $185 fee, course completion certificate, and personal disclosure statement.
Receive the PSI exam authorization. LARA reviews the application and issues a notice to schedule (NTS) for the PSI examination, typically within 10 business days.
Pass the PSI Residential Builder examination at 70%. Score 70% or better on both the business and law and trade portions. Both parts may be taken on the same day.
Receive the Residential Builder License. LARA issues the license after PSI reports the passing scores. The license is valid for three years.
Obtain workers compensation coverage. Required before employing any worker meeting the statutory threshold. File a certificate of insurance with LARA on request.
Pull permits through the local building department. Each project requires a building permit from the city, township, or county building official having jurisdiction.

Pre-Submission Checklist

These are the pieces to lock down before filing with LARA BCC:

☐ 60-hour LARA-approved pre-license course completion certificate
☐ LARA Residential Builder application with $185 fee
☐ Personal disclosure and good moral character statement
☐ PSI Business and Law exam pass at 70% or better
☐ PSI Trade exam pass at 70% or better
☐ Workers compensation coverage certificate (if employing workers above the statutory threshold)
☐ Local building department contractor registration where required

Study and Reference Materials

What follows are the regulator-cited and commonly used preparation references for this trade. They appear here for convenience only; CLR takes no compensation for them.

Michigan Residential Code (current edition) — Michigan LARA Bureau of Construction Codes. Primary technical reference. Open-book at the PSI test center.
NASCLA Contractors Guide to Business, Law and Project Management — Michigan edition — NASCLA. Standard reference for the business and law portion.
Builder's Book Michigan Residential Builder Exam Prep — Builder's Book Inc.. Practice questions aligned with the PSI Michigan exam blueprint.

Common Filing Mistakes

Based on the board's own instructions and the sources cited here, the problems below are what most often stall a Michigan General Contractor application.

Skipping the 60-hour course

LARA will reject applications that lack a course completion certificate from an approved provider. Self-study or out-of-state courses are not accepted.

Bidding commercial work under a residential builder license

The Residential Builder License does not authorize commercial construction. Commercial projects must comply with local permitting and the Michigan Building Code separately.

Underestimating the $600 threshold

Any residential project over $600 in labor and materials requires the license. Splitting invoices to stay below the threshold is unlicensed contracting.

Missing the workers compensation trigger

The 35-hour, 13-week threshold catches many small builders by surprise. Work with an insurance broker before hiring.

Letting the license lapse

A lapsed license cannot legally bid or contract work. Reinstatement after 60 days requires additional fees and may require retesting if more than three years have passed.

Other Michigan Trade Licenses

CLR covers other Michigan trades as well — the published guides below may be more relevant:

Frequently Asked Questions

When do I need a Michigan Residential Builder License?

Any residential construction, alteration, repair, improvement, move, or demolition contracted for more than $600 in labor and materials requires a LARA Residential Builder License under MCL 339.2403.

Does Michigan require experience to become a Residential Builder?

No. Michigan is one of the few states that does not require prior construction experience. Applicants must complete a 60-hour LARA-approved pre-license course in lieu of an experience requirement.

Is there a Michigan commercial general contractor license?

No. Michigan does not issue a statewide commercial general contractor license. Commercial projects are governed by local building department permitting and the Michigan Building Code.

What score is required to pass the Michigan Residential Builder exam?

70% or better on both the business and law portion and the trade portion of the PSI examination.

How often does the Michigan Residential Builder License renew?

Every three years. Renewal requires 21 hours of LARA-approved continuing competency credit.

Primary Sources

Regulatory requirements on this page are drawn from the official board, statute, and exam-provider materials listed below.

Verified 2026-05-05 · Next scheduled review 2026-08-03