The process of obtaining your contractor's license in Michigan may seem confusing at first, but don't worry, at Contractor Training Center, we've broken the process down into three straightforward steps.
Before we move on, it's important to make sure that you meet the following criteria. If you don't, you won't be eligible for a contractor's license:
- You are at least 18 years old
- You hold a valid Michigan state driver's license or state ID card
- You have the means to pay all the necessary fees, including the cost of your pre-licensure courses (these alone can be around $400)
Step 1: Complete 60 Hours of Approved Pre-Licensure Courses
Before you can submit your application, you will need to complete (and pass) a total of 60 hours of pre-licensure courses. LARA must have approved these courses, and each will last six hours, meaning you will study 10 courses overall.
LARA states that seven courses must be in the following specific subjects:
- The Michigan Residential Code
- Design and Building Science
- Contracts, Liability, and Risk Management
- Scheduling and Project Management
- Michigan Occupational Safety and Health Administration (MIOSHA) Construction Safety Standards
- Sales and Marketing
You can spend the remaining 18 hours, representing three courses, on whatever pre-approved subjects you choose.
Once you've passed all of your training, then congratulations! You'll receive Certificates of Completion to include as part of your contractor's license application.
Step 2: Decide What Type Of License Your Business Needs
As we mentioned earlier, there are two types of contractor's licenses in Michigan. To help you decide whether your business needs the Residential Builders License or the Maintenance and Alteration Contractor License, we've outlined both types below.
The Residential Builders License:
The Residential Builders License will enable you to carry out repairs and improvements on an existing home, as well as to build new properties from scratch. You may need to subcontract the work for specialist services such as mechanics, plumbing, or electrics.
This type of license is similar to what's known as the General Contractor license in many other states. Contractors who hold a valid Residential Builders License will receive a wall license and pocket card.
The Maintenance and Alteration Contractor License:
The Maintenance and Alteration Contractor License will license you to carry out specific trades. You will need a separate license for each trade, although there is no limit to the number of licenses you can hold. If somebody hires you to perform work that falls outside the remit of your license, you could be fined.
Contractors who hold this license will receive a pocket card. This carries the letter code associated with their licensed trade. Each trade covered by the Maintenance and Alteration Contractor License has a corresponding letter code, as we can see below:
- Basement waterproofing (T)
- Carpentry (A)
- Roofing (M)
- Siding (K)
- Tile and marble (P)
- Gutters (O)
- Insulation (G)
- Excavation (D)
- Screen and storm sash (N)
- House wrecking (R)
- Swimming pool installation and maintenance (S)
- Masonry (I)
- Concrete (B)
Which Exam Should You Take?
For both the Residential Builders License and the Maintenance and Alteration Contractor License, you will need to sit the state Business & Law exam. However, your trades exam will vary depending on which licensure you have chosen:
The Residential Builders Trades Exam features 100 questions. To pass, you will need to get a score of 73%, meaning you'll need to answer 73 questions correctly. Overall, you're allowed 150 minutes to complete the exam.
If you're applying for a Maintenance and Alteration Contractor License, you will need to take a separate trade exam for each trade you wish to practice. The number of questions on each exam can vary from 25 to 50.
To find out more about the exam that's required for your particular trade, give us a call on 888-585-7350.
Step 3: Submit Your Application
The next stage of the process is to submit your application to the Michigan Department of Labor and Economic Growth (DLEG). You will need to include:
Your pre-licensure course Certificates of Completion
- A valid driver's license or ID
- A credit report
- An application fee of $195
You may be wondering why you need to supply a credit report as part of your application. Because applicants need to pay for their license and exams – and will be expected to manage money once they have become a verified contractor – the Department wants to check that you are financially stable.
If you are not currently financially stable, there's no need to worry just yet. In general, the state expects applicants to have an acceptable credit score and no history of bankruptcies. However, there can be room for negotiation if you can prove that you are highly skilled and taking steps to improve your financial situation. (You must also have a legitimate way of paying your fees).
If you have any queries about this, always contact the DLEG before making an application. A professional at the Department will be able to discuss your situation and offer advice if necessary.
Once you are happy with your application, you can submit it to the DLEG. Typically, you should hear back about whether your application has been accepted within a couple of weeks to a month.
Step 4: Take The Exam
If the DLEG approves your application, you can go ahead and register for your exams. PSI conducts all of Michigan's contractor licensing exams.
If you're trying to get a Residential Builders License, you need to register for the Business & Law exam and your Residential Builders trades exam.
For a Maintenance and Alteration Contractor License, you need to register for the Business & Law exam and the correct trades exam for your chosen specialism.
First-time students will pay $111 to cover the cost of their exam. If you need to re-take the test, you can do so for $106. This will enable you to re-take both test papers.
Exam Times And Date
To register for your exam, call PSI. If you want to speak to a representative, you'll need to phone between 7.30 AM and 8.00 PM ET. Alternatively, you can use their automated registration system, available 24 hours a day.
You can arrange your exam for any date that suits you, but we recommend booking well in advance to give yourself enough time to study.
You'll have 75 minutes for your Business & Law exam. To pass, you'll need to score at least 36/50. As we mentioned above, your trades exam will last 150 minutes, and you must score 73.
