Key takeaways:
Here’s what you need to know about becoming a certified general contractor in Michigan.
- Licensing is required for most projects. In Michigan, you must have a general contractor license to work on any project valued over $600. It’s illegal to split larger projects to avoid getting licensed.
- Two main license types are available. Michigan offers Residential Builder and Maintenance & Alterations Contractor licenses, each covering different scopes of work from general construction to specific trades.
- Education and application are key steps. To get licensed, complete a 60-hour prelicensure course, submit an application with supporting documents, pay fees (waived for some veterans), and pass a state exam.
- Application and renewal involve costs and ongoing education. Licensing fees start at $300 for the initial application and licenses must be renewed every three years with continuing education. Operating with an expired license can lead to fines and penalties.
- Earning a license boosts income potential and business opportunities. Licensed contractors can work on higher-value projects and take advantage of Michigan’s strong construction industry. You could also earn significantly more than unlicensed individuals, potentially over $132,000 annually.
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Originally published in September 2023. Last updated on August 29, 2025.
Michigan’s construction market size is worth a staggering $29 billion and is home to more than 26,500 businesses, according to the Associated General Contractors of America.
And the pay isn’t bad either. The Economic Research Institute reports that the average salary for a general contractor in Michigan is more than $132,000 per year, with top earners earning more than $157,000.
With strong demand and earning potential, getting your contractor license in Michigan is the first step to breaking into the lucrative construction industry and starting your career.
This licensing guide breaks down everything you’ll need to know to get licensed as a general contractor in Michigan:
Jump to:
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Do you need a general contractor license in Michigan?
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Types of contractor licenses in Michigan
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Michigan general contractor license requirements
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How to get a general contractor license in Michigan
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Michigan general contractor exam
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Does my Michigan general contractor license work in any other states?
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How much does a general contractor license cost in Michigan?
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Renewing your general contractor license in Michigan
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How to start a contracting business in Michigan
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Does a general contractor license in Michigan increase your earning potential?
Do you need a general contractor license in Michigan?
Yes, you need a general contractor license in Michigan if you are working on any project with a value of more than $600, including materials and labor.
The project limits are firm, and it is actually against the law to break a larger contract into increments of less than $600 in an attempt to avoid getting licensed.
The Department of Licensing and Regulatory Affairs (LARA) oversees general contractor licensing in Michigan.
Types of contractor licenses in Michigan
General contractors in Michigan are broken down into two types of licenses issued by LARA—Residential Builder and Maintenance & Alterations Contractor.
The following descriptions outline the work performed under these licenses:
| License Type | Description |
| Residential Builder | License holder is primarily involved in the construction of a residential or residential/commercial structure or in the repair, alteration, or improvement of a residential or residential/ commercial structure for payment outside of personal labor |
| Maintenance & Alterations Contractor | License holder is involved in one or more specific trades or crafts, including: • Basement waterproofing • Carpentry • Concrete • Excavation • Gutters • House wrecking • Insulation work • Masonry • Roofing • Screens and storm sash • Siding • Swimming pools • Tile & marble |
Michigan general contractor license requirements
Before you apply for a Michigan general contractor license, you’ll be required to take (and pass) an approved 60-hour prelicensure course. At least six hours of instruction must come from each of these areas of competency:
- Business management, estimating, and job costing
- Design and building science
- Contracts, liability, and risk management
- Marketing and sales
- Project management and scheduling
- The Michigan Residential Code
- Michigan Occupational Safety and Health Act (MIOSHA) construction safety standards
- Remaining hours can come through an approved course list
After successful completion of the prelicensure course, an applicant will be ready to complete the license application and take the licensing exam.
Beyond the Michigan general contractor license requirements, most cities in the state don’t require additional licensure or exams to work within their city limits. However, some cities, like Grand Rapids, do have additional requirements you’ll need to meet, so make sure you check in with your regional authority before starting any projects.
How to get a general contractor license in Michigan
To get a contractor license in Michigan, applicants need to:
- Complete 60 hours of prelicensure course material
- Fill out the Residential Builder or Maintenance & Alteration Contractor License or Relicense application
- Provide copies of your personal identification
- Provide proof of a Michigan business address
- Pay the initial license fee*
- Submit all documents to the Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes/Licensing Division at:
P.O. Box 30255
Lansing, MI 48909
Once LARA has received your application with all the necessary information and materials, the department will approve you to take your Residential Builder or Maintenance & Alteration Contractor exam.
*If you’re a veteran and can show that your separation from the armed forces was “honorable” or “general under honorable conditions,” you’re exempt from paying the initial license fee. Just make sure you include a copy of your Form DD-214 or Form DD-215 in lieu of your application fee.
Michigan general contractor exam
Once LARA has approved you to take your exam, you can register online for either the Residential Builder exam or the Maintenance & Alteration Contractor exam by using PSI’s registration site. The exam must be scheduled within one year of the date your application is approved.
| Exam | Details |
| Residential Builder | • 160 questions • 110 practice/trade questions • 50 business/law questions • 240 minutes to write • 73% to pass (116/160) • $117 fee |
| Maintenance & Alterations Contractor | • 75-105 questions, depending on the specific trade or craft being tested • 25-55 trade-specific questions • 50 business/law questions • 135 minutes to write for each trade or craft being tested • 72% to pass • $70-$114 fee, depending on the number of trades or crafts being tested |
You can refer to the PSI Candidate Information Bulletin for more information about either exam. If you prefer to register by mail, fax, or email, there is a form on page 13 of the bulletin.
Does my Michigan general contractor license work in any other states?
If you’re a contractor that holds a license in another state, you’ll want to know if Michigan will honor that license without having you do additional paperwork.
Unfortunately, Michigan does not have reciprocity agreements with other states, so you’ll have to meet all requirements for a Residential Builder or Maintenance & Alteration Contractor to apply for a new license.
How much does a general contractor license cost in Michigan?
The cost of getting a contractor license in Michigan varies depending on the type of license you want to hold. In general, you can expect to pay a little more than $300 for the initial application and exam process.
| Licensing Step | Fee |
| Original Application | $195 |
| Exams | $117 for Residential Builder $70-114 for Maintenance & Alterations Contractor |
| Renewal | $150 |
| Late Renewal | $170 |
| Re-licensure | $185 |
Renewing your general contractor license in Michigan
In Michigan, all licensees must show proof of the following continuing competency requirements (CCRs) to renew and keep licenses current:
All licensees must complete the following 3 hours of CCRs during each three-year renewal period:
- 1 hour on building codes and laws
- 1 hour on safety
- 1 hour on changes in construction and business management laws
In addition, if you’ve been licensed for fewer than six years, your requirements also include:
- A total of 21 hours of CCRs during the first three-year period of licensing and an additional 21 hours during the second three-year period (the three 1-hour courses listed above plus 18 hours of ‘other’ topics)
- At least 3 hours of these CCRs must be completed each year
Residential Builder and Maintenance & Alterations Contractor licenses must be renewed every three years by May 31st. The state will mail you a license renewal 90 days before your license expires, and you can complete your renewal online.
You can visit Michigan’s license lookup tool to verify your license issuance date.
What happens if my general contractor license expires?
If you think your license has expired, stop all general contracting work immediately. Otherwise, you open the door to fees, penalties, and even legal action. Depending on the offense, fines for operating without a valid license range from $5,000 to $25,000, and jail time is possible.
To avoid this scenario, you should renew your license as soon as you can. If you missed the 90-day license renewal window, you can still pay your license fee and a late renewal fee up to 60 days past the expiration date of your license.
Other conditions apply if your license expired more than 60 days ago. For more information, consult the Michigan Occupational Code.
How to start a contracting business in Michigan
Once you have received your Michigan Residential Builder or Maintenance & Alterations Contractor license, you can begin thinking about starting your own general contractor business.
You can register your business with the Department of Treasury, which will give you the proper tax license and permits to conduct work in Michigan.
Note: If you’re a DBA (doing business as) entity, you must also register with the Department of Licensing and Regulatory Affairs.
For further questions and resources, you’ll want to check out Michigan’s guide on starting your business.
There are also some practical considerations for general contractors who are thinking of starting their own company, including:
- Pricing your services appropriately
- Securing financing and setting up an accounting system
- Finding the necessary equipment and product suppliers
- Setting up general contracting business software
- Creating a sales strategy
- Generating leads for your general contractor business
Does a general contractor license in Michigan increase your earning potential?
Yes, obtaining a general contractor license in Michigan definitely increases your earning potential because, without a license, you can only contract for jobs worth $600 or less.
A Residential Builder or Maintenance & Alterations Contractor license allows you to tap into the projected above-average 9% growth rate that is happening in the construction management industry between now and 2031. While the average salary for a general contractor in Michigan is around $132,000, you stand to earn even more as you increase your level of experience.
If you were ever debating whether or not to jump into this thriving market, know that now is the time! To learn more, refer to our guide on How to make money in construction and remodeling.