Michigan Residential Builder License

Michigan licenses residential builders through LARA's Bureau of Construction Codes. Article 24 of the Occupational Code covers people who build, alter, repair, add to, subtract from, or improve residential structures or combination residential-commercial structures for compensation.

Initial Licensing Requirements

• Prelicensure education: Complete 60 hours of approved prelicensure education before applying
• Subjects: LARA says the 60 hours must include business management, design/building science, contracts/liability/risk management, marketing/sales, project management/scheduling, the Michigan Residential Code, and MIOSHA construction safety standards
• Exam: Pass the Residential Builder examination administered through PSI after LARA approves eligibility
• Application fee: Current builder guidance lists $195 due with the application
• Good moral character: Applicants must satisfy the Occupational Code good-moral-character standard and provide identification with the application

Renewal and Continuing Competency

• Renewal period: Every 3 years
• Expiration: Residential builder licenses renew by May 31 of the renewal year
• Renewal fee: $150
• Late fee: $20 if renewed within the 60-day late-renewal window
• Relicensure trigger: If the license lapses beyond 60 days, LARA says the licensee must apply for relicensure instead of online renewal
• Continuing competency: Builders originally licensed before January 1, 2009 report 3 hours every 3 years; builders originally licensed after January 1, 2009 report 21 hours during each of the first two 3-year cycles and then 3 hours every 3 years after they have been licensed more than 6 years

Insurance and Business Structure

LARA does not list general liability or workers' compensation as core residential-builder licensure requirements on the individual builder application pages. Contractors may still need insurance for employees, contracts, local permitting, or business-risk reasons, but it should not be described as a blanket builder-license requirement.

Compliance Risk

LARA says a person who continues to practice after the license expires may be subject to disciplinary action. If the license remains lapsed beyond the late-renewal period, the person must move into the relicensure process, and if the lapse extends beyond 3 years the current rules require new prelicensure education and a new exam.

*Disclaimer: This information is provided for general reference only and does not constitute legal advice. Always verify current requirements directly with Michigan LARA before applying, renewing, or relying on this summary for business decisions.*