When does a residential builder need to be licensed?

In general, a person who contracts with another to do residential, or combination residential and commercial, construction or remodeling on a project whose total value is $600 or more is required to be licensed as either a residential builder or a residential maintenance and alteration contractor.

Is a license required for commercial building (offices, schools, factories, etc.)?

Michigan does not have a law regulating commercial builders, sometimes referred to as "general contractors". Licensing is required for residential work, including combination residential and commercial structures. For more complex projects, a licensed architect or professional engineer may be required to file plans for the project at the time an application for a permit is made.

What should I look for when selecting a home builder/remodeler?

Check out the Information to Consumersection of this site..

How do I complain about my builder?

The Bureau of Commercial Services, Enforcement Division, handles complaints about licensed builders. You may download a complaint form from this website, or contact the Enforcement Division at 517-241-9202, to have a complaint form mailed to you.

Is my builder licensed?

You can verify a builder's license status on this website. The fastest way to find license information is to have the builder's license number (starting with 210), but the search can be done by name, business name, etc. Telephone numbers are not in the database.

Is my builder required to offer a warranty? What is the warranty period?

The licensing law does not require a builder to offer a warranty. If a builder chooses to offer a warranty, homeowners should review the warranty carefully to see what is covered, what the homeowner's responsibilities are, and what the builder will do when notified of problems.

However, the licensing law does provide for a complaint period of 18 months, during which time a homeowner may complain to the department about the construction project. Problems with the home must be verified by a building inspector, and the homeowner must have provided the builder an opportunity to make corrections. If a complaint results in a proven violation of the licensing law through a formal administrative process, the builder may be fined, ordered to make restitution, suspended, revoked, denied future licenses, reprimanded, etc. You may wish to read the licensing law for more information on specific violations or consult the Bureau's Enforcement Division website to review complaint information and complaint forms.

What building activities require a license? Do I need a license to do …… ?

We suggest you look at the definition of a residential builder, and the list of specialty trades for a residential maintenance and alteration contractor, to see what is definitely required to be licensed. Review Article 24 of the Occupational Code and read sections 339.2401, 339.2403, and 339.2404.

However, over the years some specific services have been removed from the licensing law or rules. Here is a basic list; call our office for items not shown (517-241-9288)

What's the difference between a "residential builder" license and a "residential maintenance and alteration contractor" license?

The residential builder may build a new home from the ground up or may do any kind of repairs regulated under Article 24 of the Occupational Code. They may contract for the whole job, but will have to subcontract for plumbing, electrical, and mechanical (heating, ventilation, air conditioning) work to licensed plumbing, electrical and mechanical contractors.

The residential maintenance and alteration (M&A) contractor is licensed to perform only specific trades and services and may accept contracts only in the trade(s) or craft(s) for which he or she is licensed.

The residential maintenance and alteration contractor wall license and pocket card identifies the trades for which the M&A contractor is licensed. The pocket card only has room for a letter code representing the trade or trades in which that contractor is licensed. The M&A trades and their equivalent letter codes are:

Carpentry (A)
Concrete (B)
Excavation (D)
Insulation Work (G)
Masonry (I)
Painting & Decorating (J)
Siding (K)
Roofing (M)
Screen & Storm Sash (N)
Gutters (O)
Tile & Marble (P)
House Wrecking (R)
Swimming Pools (S)
Basement Waterproofing (T)

Refer to Article 24of the Occupational Code for the regulations pertaining to Residential Builders and M&A Contractors and to review the list of trades in Section 339.2404(3).

Is a builder required to carry insurance or be bonded?

The licensing law does not require a builder to have insurance or a bond. Insurance may be required as a condition of obtaining a building permit from a city, village, or township. A homeowner may wish to require that the builder show proof of insurance before they sign a contract with the builder.

What do I do about an unlicensed builder?

The Department encourages parties to pursue complaints against unlicensed individuals or entities with the local police department or county prosecutor. The prosecutor can prosecute these cases as misdemeanors.

I need information on filing a construction lien.

Check the Homeowner Construction Lien Recovery Fund link on the left.

A construction lien has been filed against my house. What do I do?

The Homeowner Construction Lien Recovery Fund web page has information on construction liens. We also suggest you contact legal counsel for advice.

How do I get licensed?

The first step in becoming licensed in Michigan is passing the licensing examination. Click here to go to the licensing requirements. The entire examination information brochure is available at the website of our test contractor, PSI Services,LLC  www.psiexams.com. (Just click on "Michigan"). The same information is available in a printed brochure by calling 1-800-733-9267 (9 a.m. to 8 p.m.).

PSI administers the examination in Lansing, Grand Rapids, and Southfield by appointment, nearly every day of the week and monthly in Marquette. The examination is computer based. For more information on how to sign up for the examination and the examination specifications, contact PSI at 1-800-733-9267,or by visiting their website at www.psiexams.com.

When you pass the examination, your passing score is printed right on the state license application so you can apply for the license immediately.

Are application forms available on the Internet?

Basic applications for licensing are not available on this site. If you have not been licensed before, you must first take the licensing examination. When you pass, your passing score will be printed right on the license application you will need. If you have already been licensed and are applying for more licenses or are changing license types (i.e. incorporating, forming a partnership), call the Builders office, at 517-241-9288, for the appropriate forms.

I used to be licensed, but the license has expired. What do I do now?

If you were licensed in Michigan during the last three years, call our office for a "relicensure" application; you do not need to repeat the licensing examination. If it has been more than three years since you were licensed in Michigan, you will need to take the licensing examination. Get the examination brochure, by calling our testing contractor, PSI Services, LLC at 1-800-733-9267, or by visiting their website.

I have a criminal record and/or bad credit. Will I be able to be licensed?

The licensing law provides for applicants to submit evidence of good moral character and financial stability. Each application is evaluated on a case-by-case basis.

Where do I get books to study for the examination?

A list of suggested study materials is included in the examination brochure. A free copy of the laws and rules for residential builders will be sent to you when you sign up for the examination.

How long does it take to process my license application?

Please allow 4 to 8 weeks for processing applications, particularly in the spring when many people want to go into the building business and licensees are renewing their licenses.

Our company was formed in another state. How do we get licensed as a Michigan residential builder?

The law provides for out of state companies to be licensed as Michigan residential builders. A corporation or limited liability company must be "admitted as a foreign company" in Michigan, through the Corporations Division. Information is available on their website, or by calling 517-241-6470. The company must have a physical location in Michigan where the company will be doing its building.

Once admitted as a foreign company, the company must apply on the company application form, provide a consent to service of process for the qualifying officer and for the corporation itself, as well as a resolution agreeing to the consent to service of process, and supply copies of the Michigan company admission documents, as well as the articles of incorporation, or articles or organization, or partnership papers, and a certificate of good standing in the state of incorporation. A checklist comes with the corporate license application. Call 517-241-9288 for a corporate application.

I have had a license in my own name. I'm incorporating (forming a partnership or limited liability company). What do I have to do to have the company licensed?

The corporation is a new legal "person" and it must apply for its own license. When it applies, it will select a live person to be its "qualifying" officer -- the person who took the licensing examination and will assume responsibility for the company complying with the building laws and rules. The qualifying officer may be someone who already has a license or someone who has just passed the examination. The qualifying officer may be an officer, director, member, partner, agent or employee of the company. Call the Builders office, at 517-241-9288, for a corporate application if the qualifying officer does not need to take the license examination. If the qualifying officer needs to take the examination (not currently licensed in Michigan and has not been licensed in the past three years), contact our exam contractor at 1-800-733-9267 for an exam application. They will provide the licensing application after the qualifying officer successfully completes the licensing examination.

I used to have a corporation (partnership, LLC), but now I want a license in my own name. What do I have to do?

If you have been licensed in the State of Michigan within the past three years, contact the Builders office at 517-241-9288. If you have not been licensed as a builder within the last three years, contact our exam contractor at 1-800-733-9267 for an exam application.

I have moved my business or changed my business name. How do I change my license information?

If you are changing your name (due to marriage, divorce, etc.) or address on your license, file BCS/LBL-035Name and Address Change form.  Complete application and submit with a $10.00 fee and the Builders office will issue a corrected license. If you are changing your name or address during renewal time (March-May of the year your license expires), just make the changes on the renewal form. No additional fee is required.

For a change of the "doing business as" name on an individual license, also send a copy of the new "doing business as" certificate (Certificate of Assumed Name) from the county clerk.

For a corporation or limited liability company that is changing its name, also send a copy of the amended articles of incorporation/organization showing that the name change has been filed with the Corporations Division.

If, however, you are an individual licensee and you have incorporated, the company is a new legal person" and must apply for its own license. Call the Builder's office, at 517-241-9288, and ask for a corporation application to be mailed. (The form is not on the Internet.)

The qualifying officer has left our company. How do we get a new qualifying officer shown on our license?

There is a form for the change of qualifying officeravailable on this website. Use this form if the new qualifying officer is currently licensed or has been licensed in the past three years. If the proposed qualifying officer has not been licensed in the past three years, the person must take the licensing examination and will be sent the qualifying officer change form when they pass the examination. Check with PSI Examinationsabout getting scheduled for the examination.

Do our salespersons have to be licensed?

Individuals selling the work of a residential builder, or residential maintenance and alteration contractor, must be licensed as a salesperson. There is a separate license and examination for a salesperson. This is not the same license as a real estate salesperson's license; the real estate salesperson works for a real estate broker, selling properties listed with that broker. The builder or maintenance and alteration contractor salesperson sells the construction projects and completed homes for a residential builder or residential maintenance and alteration contractor. A licensed builder does not need a salesperson license to sell for himself or herself; however, they do need a license if they sell the goods and services of another builder or maintenance and alteration contractor.

Can I come to the Department and pay in person?

Yes. Our offices are located at 2501 Woodlake Circle, Okemos Michigan. The hours the Department can accept your payment are 8:00 a.m. to 4:30 p.m. We may not have change for large bills, so correct cash or check/money order is preferred.

Can I pay for my renewal on-line with a credit card?

Yes. You may be able to renew on-line with a credit card using Michigan's elicense process. Renewal applications are mailed in late-March for those whose licenses expire on May 31 of that year. The renewal form will contain instructions on using the elicense feature.

If you hold an individual license and do NOT have a name change, you may renew via the Internet. If you have a name change not previously reported to this office, you must renew by mail. If your license record is lacking your Social Security Number and/or Date of Birth, your Internet renewal will reject, and you will have to renew your license by mail. If this happens, you should submit your Social Security Number and Date of Birth on the renewal application and request that the department update your license record so that you can renew via the Internet in the future.

Please note, licensees that hold a partnership, limited liability company, or corporation license, cannot renew on-line. Your renewal must be mailed.

Is there an easier way to check the status of my license? Every time I call I get a busy signal?

At certain times of the year, the Department telephone lines are very busy. Use the Verify a License service on our site to check the status of your license.

Why is it sometimes difficult to get through to the Department's staff by telephone?

The call volume during the renewal cycle (March thru July) increases dramatically. We ask that you be patient and keep trying to reach the Department, or attempt to get your question answered on this website.