What Are Michigan's Contractor Licensing Rules?

Is a contractor license required in Michigan?

It depends entirely on what kind of work it is. Michigan has no statewide license for general or commercial contracting — a company doing commercial construction work is governed by local building codes and permits, not a state credential, regardless of project size. What Michigan does license statewide is residential construction: a Residential Builder license for broader residential work, and a narrower Maintenance and Alteration (M&A) Contractor license limited to repair, alteration, and improvement of existing residential structures across specific designated trade categories. A minor exemption historically covers residential work valued under $600, though this shouldn't be assumed to extend to electrical, plumbing, or mechanical work, which are licensed separately regardless of project value.

Which agency regulates it?

The Department of Licensing and Regulatory Affairs (LARA), through its Bureau of Construction Codes, administers the Residential Builder and M&A Contractor licenses, with a Residential Builders' and Maintenance and Alteration Contractors' Board involved in the regulatory and disciplinary framework. Electrical, plumbing, and mechanical (HVAC/refrigeration) work are licensed entirely separately under the Skilled Trades Regulation Act, each with its own board — the Electrical Administrative Board, the State Plumbing Board, and the Board of Mechanical Rules — though LARA's Bureau of Construction Codes handles the administrative processing for all of them.

Where can you find the actual laws?

Residential builder and M&A licensing is Michigan Compiled Laws Chapter 339, Act 299 of 1980, Article 24, §§ 339.2401 through 339.2412 — the qualifying officer provision is § 339.2405, prelicensure education is § 339.2404b, and the enforcement and contract-restriction provision is § 339.2412. Electrical, plumbing, and mechanical trades are governed separately under the Skilled Trades Regulation Act, 2016 PA 407 (MCL 339.5101 et seq.), which replaced three older trade-specific acts effective April 2017. LARA's Bureau of Construction Codes publishes its own current licensing instructions directly.

What does it take to get licensed?

New residential builder and M&A applicants complete a prelicensure course of study — historically 60 hours, covering business management, construction law, and residential construction practices — and pass the required exam. Michigan doesn't appear to impose a fixed years-of-experience requirement on the qualifying officer role the way most states do for their equivalent position. Licenses renew on a three-year cycle with continuing-competency requirements tied to when the licensee was first licensed. Electrical, plumbing, and mechanical licensing each run their own separate requirements entirely, administered under their own boards.

What are the penalties for operating without a license?

Real, though lighter than in many states and structured as a civil matter rather than a criminal one. Under § 339.2412, a prosecuting attorney or the Michigan Attorney General can bring a civil action against an unlicensed person, with the court assessing a civil fine of $5,000 to $25,000 — separate from any civil damages or restitution owed. Separately, and more immediately consequential for most disputes: an unlicensed residential builder, M&A contractor, or qualifying officer generally can't bring or maintain a court action to collect payment for work that required a license, unless they can prove they were actually licensed while doing the work. Michigan case law has clarified that being unlicensed doesn't make the underlying contract entirely void — it specifically bars the contractor from suing to collect, without necessarily preventing them from defending themselves if sued over the same work.

Does Michigan have reciprocity with other states?

No. LARA's own published guidance states directly that Michigan has no reciprocal agreements with any other state for the Residential Builder license — an out-of-state license holder goes through the full Michigan application process regardless of what they already hold elsewhere. A limited waiver exists for military veterans on the prelicensure course requirement specifically, but that's not a reciprocity arrangement with another state.

Is it legal to rent or lease a license in Michigan?

No. "Qualifying Officer" is Michigan's actual term for a business entity's residential licensing role — an owner, partner, member, or managing agent the business designates, who has to pass the exam and, notably, has to hold their own individual license separately from the entity's license. The statute makes them directly responsible for "supervising or controlling" the business's construction operations so the work complies with the law — a real-involvement duty written into the text itself, not just an inference. The enforcement structure is genuinely distinctive: discipline runs in both directions at once. If the entity's license is suspended, revoked, or denied, the qualifying officer's own individual license is automatically suspended, revoked, or denied right along with it, and the reverse is true too. If the qualifying officer stops serving in that role, the entity's license is automatically suspended — not just a deadline to replace them, genuine automatic suspension — though LARA can allow it to stay in force for a reasonable time while a new qualifying officer gets approved. That two-way linkage is a direct structural disincentive against exactly the kind of passive, uninvolved arrangement this question is about.

How do you find a qualifier or a business in Michigan?

findQualifier.com is a public, searchable board of licensed professionals advertising their availability to work as a qualifier, by state and trade. Browse available qualifiers in Michigan, browse Michigan businesses looking to hire, or post a listing.