Michigan Residential Builder & Maintenance Contractor Licensing (2026)

The Michigan contractor licensing framework

Michigan regulates residential construction more strictly than most states. The Occupational Code (MCL 339.2401 et seq.) requires a state-issued license for nearly all residential construction, alteration, repair, and improvement work. The licensing scheme is administered by the Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes (BCC), and the State Board of Residential Builders & Residential Maintenance and Alteration Contractors. Commercial construction is generally NOT state-licensed in Michigan (specialty trades like electrical and plumbing are separately licensed), but residential work is heavily regulated.

Two principal license classes cover most general construction:

Residential Builder (RB)

Authorizes the construction of new residential structures (one- and two-family) and substantial alterations. Required for:

New residential construction
Additions that substantially modify the structure
Major renovations and gut rehabs
Speculative residential building

Residential Maintenance and Alteration (M&A) Contractor

Authorizes repair, remodeling, and replacement work on existing residential structures — but NOT new construction. Subdivided by trade specialization:

Carpentry
Concrete
Excavation
House wrecking
Insulation
Masonry
Painting and decorating
Roofing
Siding
Screen / storm sash / aluminum / vinyl
Swimming pools
Tile and marble
Other specialty work as defined by the Board

An M&A contractor working outside their specialization is operating outside the license scope and exposes themselves to disciplinary action.

Prelicensure education (60 hours)

Under MCL 339.2404, every applicant for a Residential Builder license must complete 60 hours of approved prelicensure education before sitting for the exam. The hours must cover:

Business management and law — 6+ hours covering contracts, lien law, Builders' Trust Fund Act, business operations
Design and building science — fundamentals of residential design and construction
Construction safety standards (MIOSHA) — workplace safety for residential job sites
Michigan Residential Code — code basics, plan reading, inspection process
Estimating and project management — business-side residential operations

The 60 hours must be completed through a LARA-approved provider. The course completion certificate is required to register for the licensing exam. M&A specializations have their own prelicensure hour requirements that vary by trade.

Exam and application

After completing prelicensure education, applicants register with PSI Services for the licensing exam. The exam is in two parts:

Business and Law portion — covers contracts, the Builders' Trust Fund Act, lien law, MIOSHA, employment basics, and Michigan construction-related statutes
Trade portion — Residential Builder trade content (or M&A specialization-specific content for those applicants)

Passing both portions, submitting the application to LARA, paying the license fee, and showing proof of qualifying experience (typically 2 years for RB) results in license issuance. Licenses are renewed every 3 years with continuing education.

License-number disclosure requirements

Under MCL 339.2412 and Board administrative rules, the license number must appear on:

All written residential contracts
All written proposals and estimates given to residential clients
Advertising — print, online, signage, and vehicle lettering
Permit applications
Invoices and statements

Failure to include the license number on a contract is a violation of the Occupational Code and a basis for discipline. More consequentially: under MCL 339.2412a, an unlicensed contractor who performs work requiring a license cannot enforce the contract or any lien. The homeowner can refuse to pay and the contractor has no civil remedy.

Builders' Trust Fund Act (MCL 570.151 et seq.)

This is the most consequential provision of Michigan construction law for contractor compliance. Payments received from a residential property owner are held in trust by the contractor for payment to subcontractors and suppliers on that specific job. Key rules:

Funds received for one job must not be commingled with operating funds in a way that prevents tracking
Funds must be used first to pay subs and suppliers on the originating job before the contractor takes profit
Misuse of trust funds (e.g., using Job A's payments to cover Job B costs, or to pay personal expenses) is a felony
The trust fund obligation creates personal liability for officers and managers of contracting entities, piercing the corporate veil where misuse is proven
Many Michigan contractor disciplinary actions originate from Trust Fund Act violations

Michigan Construction Lien Act (MCL 570.1101 et seq.)

Lien rights in Michigan are conditioned on proper licensure and strict procedural compliance:

Notice of Commencement filed by the owner (or general contractor on owner's behalf) before construction begins.
Notice of Furnishing — subs and suppliers who don't have a direct contract with the owner must serve this on the owner's designee within 20 days of first labor or materials provided. Missing this deadline can cap or eliminate later lien rights.
Claim of Lien — recorded with the county Register of Deeds within 90 days of the date the claimant last provided labor or materials.
Notice of Lien Recording — served on the owner within 15 days of recording.
Action to foreclose — filed in circuit court within one year of recording the Claim of Lien.

All deadlines are strict. Missing any one is fatal to the lien — Michigan courts will not extend the windows for equitable reasons. An unlicensed contractor cannot file a valid lien even if all procedural steps are followed.

The contractor paperwork pack that pairs with this guide

Editable estimate + quote paperwork

Contractor Estimate & Quote Pack

Professional 2-page estimate with materials/labor breakdown, scope of work, change order, and bid comparison

$12.99View Estimate Pack →

For project-level controls — change orders, daily logs, progress billing, and the project workbook that tracks trust-fund-eligible payments — see the Contractor Project Control Kit ($49.00). For the full construction-management toolkit, the Complete Construction Bundle ($44.99) packages estimates, contracts, change orders, and project controls together.

The templates in these packs use standard US construction terms. Michigan-specific disclosures (license number on every document, written-contract content required by MCL 339.2412, Notice of Commencement formatting under the Construction Lien Act, and trust-fund accounting practices) must be added or adapted by the contractor; this guide's checklist of required disclosures is a useful pairing.

Related resources

Michigan contractor licensing FAQs

Who needs a Michigan contractor license?

Under Michigan's Occupational Code (MCL 339.2401 et seq.), anyone who undertakes residential construction, alteration, repair, or improvement for compensation must hold the appropriate license. The licensing scheme is administered by the Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes. Commercial construction is generally not licensed at the state level in Michigan (with exceptions for specialty trades), but residential work is heavily regulated. Operating without a required license is a misdemeanor and forfeits the contractor's right to enforce payment under MCL 339.2412a.

What is the difference between Residential Builder and Maintenance & Alteration?

A Residential Builder license (RB) authorizes the construction of new residential structures and substantial alterations. A Residential Maintenance and Alteration (M&A) Contractor license is narrower — it authorizes repair, remodeling, and replacement work on existing residential structures, but not new construction. The M&A license is further subdivided by trade specialization (carpentry, concrete, electrical, masonry, painting, plumbing, roofing, siding, etc.). Some applicants pursue M&A first and upgrade to RB later; others go directly to RB.

What are the Michigan contractor prelicensure education requirements?

Under MCL 339.2404, applicants for a Residential Builder license must complete 60 hours of approved prelicensure education before sitting for the exam. The 60 hours must cover business management/law, building science, MIOSHA, building codes, and similar topics, delivered by a LARA-approved provider. The M&A license requires similar prelicensure education tailored to the specific trade specialization. The exam is administered by PSI Services on behalf of LARA.

How much experience do I need to apply?

For Residential Builder: 2 years of experience in residential construction or supervisory work, OR appropriate education (a related associate or bachelor's degree can count toward the experience requirement). For M&A trade specializations: experience requirements vary by trade. The application requires affidavits or other documentation verifying the qualifying experience.

What is the Michigan Residential Code?

Michigan adopted the 2015 Michigan Residential Code (MRC), which is based on the International Residential Code (IRC) with Michigan-specific amendments. The code applies to one- and two-family residential structures. Builders must follow the MRC for all licensed residential work; cities and counties enforce the code through local building departments. Failure to build to code can void the work, expose the builder to lawsuit, and subject the license to disciplinary action.

Are written contracts required for residential work?

Yes. Under MCL 339.2412, residential contracts must be in writing for any project where the cost exceeds $600. The written contract must include: contractor's name, address, and license number; description of the work; estimated start and completion dates; total contract price; payment terms; and the contractor's right of recovery limited to the licensed scope. Failure to provide a written contract that includes the license number can void the contractor's enforcement rights against the homeowner. The Michigan Builders' Trust Fund Act (MCL 570.151 et seq.) adds further requirements for handling client payments on residential jobs.

What is the Michigan Builders' Trust Fund Act?

MCL 570.151 et seq. — payments received from a residential property owner are held in trust by the contractor for payment to subcontractors and suppliers on that specific job. Misuse of trust funds (using one job's payment to fund another, or for personal expenses) is a felony. The trust fund concept is one of the most heavily-enforced provisions of Michigan construction law and is the basis for many contractor disciplinary actions.

Can I file a Michigan construction lien?

Yes, but the procedure is strict. Under the Michigan Construction Lien Act (MCL 570.1101 et seq.): (1) for residential work, only properly licensed contractors can perfect a lien — an unlicensed contractor's lien is void; (2) a Notice of Furnishing must be served on the property owner and designee within 20 days of first labor/materials provided (for sub-tier claimants); (3) the Claim of Lien must be recorded within 90 days of last work; (4) the Notice of Lien must be served on the owner within 15 days of recording; (5) an action to foreclose must be filed within one year of recording. Missing any deadline forfeits the lien.