General Contractor Licensing in Michigan

Michigan General Contractor License Verification

In Michigan, individuals undertaking residential construction or remodeling projects valued at $600 or more, including labor and materials, are generally required to hold a "Residential Builder license" or a "Maintenance & Alteration Contractor license". These licenses are issued and governed by the Michigan Department of Licensing and Regulatory Affairs (LARA), specifically through the Bureau of Construction Codes and the Residential Builders' and Maintenance and Alteration Contractors' Board.

To obtain a Residential Builder license, applicants must be at least 18 years old, possess a valid Michigan driver's license or state identification card, and demonstrate good moral character. A crucial step is completing 60 hours of state-approved pre-licensure education, which covers essential topics such as business management, Michigan Residential Code, MIOSHA construction safety standards, and contract law. Following the education, applicants must submit an application with their course completion certificate and pass a two-part state examination covering Business and Law, and Residential Trades.

For commercial construction projects, Michigan does not impose a state-wide general contractor license; instead, contractors should consult local county building officials for specific requirements. Licenses for residential builders expire every three years on May 31st and require 21 hours of continuing education for renewal during the first six years of licensure. Michigan does not offer reciprocity for residential builder licenses, meaning out-of-state contractors must fulfill all Michigan licensing requirements.

Insurance and Bonding Mandates

While Michigan does not mandate specific general liability insurance amounts for obtaining a state contractor license, contractors typically carry coverage ranging from $500,000 to $1,000,000, which is often a prerequisite for permits and standard business operations. This insurance protects against third-party claims for bodily injury and property damage.

Worker's compensation insurance is required for private employers with three or more employees, or with at least one employee working 35 or more hours per week. Although state-level surety bonds are generally not required for Michigan contractor licensing, many local municipalities, such as Oakland County and St. Clair Shores, necessitate local contractor license bonds. Furthermore, performance and payment bonds are typically mandatory for public works projects under "Little Miller Acts" and are often required for private projects to ensure contractual obligations are met.

Permitting and Local Regulations

Michigan's building codes are based on the Michigan Building Code (MBC), which is derived from the International Building Code (IBC) with specific state amendments, with the 2025 Michigan Building Code being enforced since May 1, 2025. Building permits are essential for most construction, renovation, and alteration work that affects a structure or its exterior. Local municipalities are primarily responsible for enforcing these codes and issuing permits, including those for mechanical, plumbing, and electrical work.

Contractors must also adhere to local zoning ordinances, which dictate aspects like permitted land uses, building setbacks, height restrictions, and parking requirements. It is critical to consult local zoning and building officials early in the project planning phase. Failure to obtain necessary permits can lead to significant fines, with residential work incurring a $200 fine and commercial work a $400 fine for working without a permit. A Certificate of Occupancy must be obtained upon project completion before the building can be legally occupied or used.

Official Michigan Resources

• Michigan Department of Licensing and Regulatory Affairs (LARA): https://www.michigan.gov/lara
• Michigan Bureau of Construction Codes: https://www.michigan.gov/bcc

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