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Michigan Contractor Business & Law — Requirements & Free Practice

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Licenses, application pathways and examination requirements

Each license and applicant pathway has its own requirements and exemptions. Choosing practice questions does not determine your eligibility.

Individual Residential Builder

Authorizes construction of a complete residential structure and maintenance and alteration work.

Licensing authority: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes · Application information

Initial licensure by examination
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Minimum age
At least 18 years of age.
Prelicensure
Complete 60 hours of approved prelicensure study, including the areas of competency in MCL 339.2404b(1)(c), unless an applicable exemption or military credit applies.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.
Licensure or relicensure of a qualifying officer formerly denied an individual license for financial instability
Residential Builder Practice/Trade and Business/Law Combination
Continuing competency
Certify at least three hours in the preceding 12 months: one each in codes, safety, and legal issues.
Department discretion
Under MCL 339.2404c the Department determines whether a license is issued and whether the identified Article 24 examination must be passed.
Historical eligibility
Was a qualifying officer on December 21, 2007 and subsequently denied an individual license for financial instability.
Moral character
The Department considers good moral character of the applicant and persons covered by MCL 339.2404(1).
Renewal within 60 days after expiration
No examination is required for this applicant pathway.
Lapse
Do not practice after expiration. Pay the required license fee and late renewal fee within 60 days and satisfy renewal requirements.

Official no-examination sources

Effective from 2026-09-22.

Licensure without examination for a qualifying service member, veteran, or dependent holding an equivalent license
No examination is required for this applicant pathway.
Disciplinary status
No revocation or surrender during an investigation. Unresolved discipline, complaints, allegations, or investigations suspend processing until resolved.
Equivalent license
Hold a valid equivalent occupational license from another U.S. state for at least one year in good standing. The issuing authority must verify required education and experience and substantially equivalent or greater requirements.
Military status
Provide proof of membership in the armed forces or uniformed services, veteran status, or qualifying dependency.
Other requirements
Pay applicable fees, be of good moral character, meet the occupation's age requirement, and satisfy the federal-oversight exception in MCL 339.217(2). The controlling statute expressly issues this route without examination.
Other state exam
If the other state required an examination for its license, the applicant must have passed it; that other state's examination is an applicant condition.

Official no-examination sources

Effective from 2026-09-22.

Renewal exemption during mobilized military duty
No examination is required for this applicant pathway.
Duration
Exemption lasts until 90 days after release from mobilized duty and no more than 36 months from license expiration.
Mobilized duty
Request the temporary exemption in writing or electronically and provide proof of qualifying presidential mobilization.
Supervision
If responsible for oversight, provide arrangements for adequate supervision.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure by a nonresident
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Minimum age
At least 18 years of age.
Nonresident
Conform to Article 24 and file notarized irrevocable consent to service of process. A foreign corporation must be authorized to do business in Michigan, with its resolution authorizing consent.
Prelicensure
Complete 60 hours of approved prelicensure study, including the areas of competency in MCL 339.2404b(1)(c), unless an applicable exemption or military credit applies.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.
Activation of grandfathered inactive status
No examination is required for this applicant pathway.
Inactive status
Available to an individual designated inactive before September 16, 2014. Apply to activate and complete at least one credit hour of continuing competency for that calendar year.

Official no-examination sources

Effective from 2026-09-22.

Relicensure after more than three years
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Discipline
Satisfy outstanding disciplinary penalties or conditions.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Lapse
License expired for more than three years; provide the original license number, meet current requirements and pass the current license examination.
Minimum age
At least 18 years of age.
Prelicensure
Complete 60 hours of approved prelicensure study, including the areas of competency in MCL 339.2404b(1)(c), unless an applicable exemption or military credit applies.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.
Relicensure after the late renewal period and within three years
No examination is required for this applicant pathway.
Continuing education
If required, provide proof of the equivalent of one year of continuing education in the preceding 12 months or as otherwise prescribed by the applicable article or rule.
Discipline
Satisfy all penalties and conditions imposed by disciplinary action.
Fees
Pay application, late renewal and upcoming license-period fees.
Lapse
Apply within three years of the last license's expiration, after the 60-day late renewal period.

Official no-examination sources

Effective from 2026-09-22.

Ordinary renewal
No examination is required for this applicant pathway.
Continuing competency
MCL 339.2404b(2)-(3) distinguishes initial licensure date, completed three-year cycles, and disciplinary orders; maintain activity documentation for at least five years.
Renewal
Apply before expiration, pay required fees, and attest to possession of the current Michigan Residential Code and satisfaction of applicable continuing competency.

Official no-examination sources

Effective from 2026-09-22.

Initial licensure with unavailable foreign education or experience records
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Foreign records
Subject to Board and Department approval, submit the required notarized affidavit of education, courses, grades and former employers and a governmental official's notarized statement that records are unavailable. MCL 339.214 permits examination or application for reciprocal licensure; any permission not to sit an examination remains an applicant condition.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Minimum age
At least 18 years of age.
Prelicensure
Complete 60 hours of approved prelicensure study, including the areas of competency in MCL 339.2404b(1)(c), unless an applicable exemption or military credit applies.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.
Residential Builder licensure for a current M&A contractor
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Existing license
A current M&A contractor applying for a Residential Builder license must take the Residential Builder examination under MCL 339.2410.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Minimum age
At least 18 years of age.
Prelicensure
Complete 60 hours of approved prelicensure study, including the areas of competency in MCL 339.2404b(1)(c), unless an applicable exemption or military credit applies.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.
Initial licensure with armed forces prelicensure exemption or credit
Residential Builder Practice/Trade and Business/Law Combination
Application
Submit the current individual application and applicable fees; Department authorization precedes PSI registration. The application is not a company application.
Business address
Maintain a physical place of business in Michigan; the application does not accept a P.O. Box.
Identity
Submit a state-issued photo identification and evidence of good moral character as required by the Department.
Minimum age
At least 18 years of age.
Prelicensure
Military construction experience and qualifying honorable/general separation may exempt the applicant from prelicensure education; submit separation documentation and a superior's affidavit addressing all required competencies. Partial competency may receive discretionary credit. A first examination failure requires the full prelicensure course before a retake.
Score window
R 338.1521 makes the application void after one year without all requirements being met; a passing examination or part score is valid for one year.

Company Residential Builder

Company license through a qualifying officer who must hold and maintain an individual license.

Licensing authority: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes · Application information

Company license late renewal within 60 days
No examination is required for this applicant pathway.
Lapse
Pay required license and late renewal fees within 60 days; maintain a qualifying officer and do not practice after expiration.

Official no-examination sources

Effective from 2026-09-22.

Company licensure through a qualifying officer
Residential Builder Practice/Trade and Business/Law Combination
Entity members
Persons specified in MCL 339.2405(1) must be at least 18 and meet qualifications other than knowledge and experience.
Prior passage
MCL 339.2410 excuses repeating the same license examination for a currently licensed person applying for an additional license. The currently offered examination identified in MCL 339.2405(1) remains a leaf; sitting it again is an applicant condition.
Qualifying officer
Designate an officer, partner, member or managing agent who has passed the examination and holds and maintains the individual occupational license.
Supervision
Qualifying officer exercises required supervision or control; a grandfathered inactive licensee cannot serve as qualifying officer.
Company relicensure within three years
No examination is required for this applicant pathway.
Lapse
Apply within three years, pay applicable fees and satisfy disciplinary and continuing education conditions; maintain an eligible qualifying officer.

Official no-examination sources

Effective from 2026-09-22.

Company license renewal
No examination is required for this applicant pathway.
Qualifying officer
Maintain a current eligible individual qualifying officer and satisfy applicable license-renewal attestations and fees.

Official no-examination sources

Effective from 2026-09-22.

Continuation with a replacement qualifying officer
Residential Builder Practice/Trade and Business/Law Combination
Cessation
License is suspended when the qualifying officer ceases to serve, but the Department may allow reasonable time to qualify a successor.
Successor
The successor must maintain an individual occupational license and satisfy the qualifying-officer requirements; current licensees need not repeat the same examination.

Residential Builder License with a Limitation

License with a Board-approved limitation under MCL 339.203(2) or a limitation on renewal under MCL 339.204(3).

Licensing authority: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes · Application information

Initial licensure with a Board approved limitation
Residential Builder Practice/Trade and Business/Law Combination
Discretion
Department and Board may issue a license with a limitation or review whether ordinary requirements adequately measure the applicant's competence.
Exam exception
The ordinary examination remains identified; MCL 339.203(1) permits individualized departure from a required examination found inadequate, rather than imposing an invented alternative examination.
Removal of a limitation after review
No examination is required for this applicant pathway.
Review
Department and Board review the petitioner's qualifications and determine that each occupational function can be performed competently without the limitation.

Official no-examination sources

Effective from 2026-09-22.

Renewal with a Board approved limitation
No examination is required for this applicant pathway.
Renewal
Apply and pay applicable fees, meet renewal conditions and accept any Board-approved limitation. A limitation may be reviewed under MCL 339.519.

Official no-examination sources

Effective from 2026-09-22.

Temporary Residential Builder License

Temporary statutory form under MCL 339.213, including Board-approved interim licensure and military-dependent licensure.

Licensing authority: Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes · Application information

Board approved interim temporary licensure pending ordinary examination or evaluation
Residential Builder Practice/Trade and Business/Law Combination
Eligibility
Applicant for initial licensure or transfer has never been denied, suspended or revoked and obtains Board approval.
Nonrenewable
The interim license is nonrenewable and ends on the statutory examination/evaluation, license issuance, missed next examination, failure of eligibility, or employment-change event.
Timing
Temporary issuance precedes completion of the ordinary pathway; whether the next examination is required for the applicant is subject to the approved pathway and the Board's conditions.
Temporary licensure for a qualifying military dependent licensed elsewhere
No examination is required for this applicant pathway.
Dependency
MCL 339.213(2), as amended in 2021, covers a dependent of a member of the armed forces, uniformed services, or a veteran.
Equivalent license
Hold a current license in good standing in the occupation from an equivalent authority in another U.S. state or foreign country.
Implementation difference
The undated LARA page Active Duty Military Personnel, Veterans & Military Spouse Information states: Beginning September 9, 2014, the department shall grant a temporary license or certificate of registration for an occupation regulated under the Occupational Code to an applicant who meets all of the following: (a)   He or she provides proof acceptable to the department that he or she is married to a member of the armed forces who is on active duty. (b)   He or she provides proof acceptable to the department that he or she holds a current license in good standing, or a current registration in good standing, in that occupation, issued by an equivalent licensing department, board, or authority, as determined by the department, in another state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, another territory or protectorate of the United States, or a foreign country. (c)   He or she provides proof acceptable to the department that his or her spouse is assigned to a duty station in this state and that he or she is also assigned to a duty station in this state under his or her spouse’s permanent change of station orders. The current controlling MCL 339.213(2), amended effective September 7, 2021, governs this route with broader military-dependent eligibility. This narrower implementing demand is retained for applicants to assess.
Term
Six months with one possible additional six-month term and any Department-imposed limitation.

Official no-examination sources

Effective from 2026-09-22.

One additional six month renewal of a military dependent temporary license
No examination is required for this applicant pathway.
Continued eligibility
Continue to satisfy the military-dependent temporary-license conditions and need additional time to fulfill initial Michigan licensure requirements.
Maximum extension
Only one additional six-month term is authorized; Department limitations may apply.

Official no-examination sources

Effective from 2026-09-22.

Residential Builder Practice/Trade and Business/Law Combination

Provider
PSI
Format
Computer-administered, closed book, multiple choice
Exam questions
160 scored questions: 50 Business and Law and 110 Practice/Trade; up to 10 additional unscored experimental questions
Time limit
240 minutes
Passing score
116 correct scored answers
Examination outline
  • Regulatory and Statutory Requirements
    • Licensing Process and Requirements (application, renewal, display, suspensions and revocations of individual license, Company license)
    • Regulations Governing Conduct and Penalties (place of business, advertising, sales agreements, financial statements, name)
    • Complaints
    • Investigations
    • Hearings
    • Independent Arbitration
    • Permitting and Inspection Requirements
    • Civil Rights (Elliot-Larson Civil Rights Act)
    • Fair House and American Disabilities Act (ADA) (Michigan Barrier Free Design, sales, office facility, hiring, employee practices)
    • EPA Regulations for Hazardous Materials (asbestos, lead, radon)
    • Salespersons
  • Types of Business Organization
    • Proprietorships
    • Limited Liability Companies (LLC)
    • Corporations
    • Partnerships
  • Estimating
    • Estimating Pertaining to Residential Building
  • Contracts
    • Requirements
    • Definition
    • Types
    • Terminology
    • Binding
    • Addenda
    • Change Orders
    • Warranties
    • Financing Requirements
    • Breach
  • Project Management and Administration
    • Quality Assurance/Quality Control
    • Materials/Logistics
    • Cost Management
    • Subcontractors
    • Inspections
    • Scheduling
    • Draws
    • Progress Payments
    • Retainage
    • Customer Service
  • Accounting and Finance
    • Payroll
    • Tax Obligations (Federal, State, Unemployment
    • Costs and Expenses
    • Sales and Accounts Receivable
    • Cash Flow
    • Balance Sheets
    • Income Statements
    • Ratios
  • Insurance, Bonds and Liens
    • Insurance — Liability
    • Insurance — Workers' Compensation
    • Insurance — Vehicle
    • Insurance — Property
    • Insurance — Property Damage
    • Insurance — Title
    • Insurance — Employee (social security, unemployment, disability, benefits)
    • Insurance — Business
    • Insurance — Accident
    • Builders' Risk
    • Bonds
    • Liens Placement (Construction Lien Act)
  • Personnel
    • Employee Safety and Administration (recordkeeping, MIOSHA, penalties)
    • Federal and State Labor Laws (wages, overtime, minors)
    • Employee Benefits (health, retirement, vacation, etc.)
  • Site Engineering
    • Surveying (reference points, monuments, flood plains, wetlands, benchmarks)
    • Septic requirements
    • Well requirements
    • Plot plan (building lines, setbacks, easements, restrictions, utility source locations)
    • Elevations (transit level, topographical)
    • Survey plans and symbols
  • Plans, Specifications and Estimating
    • Green building materials and methods
    • Construction techniques (new construction, remodeling)
    • Costs and labor estimating (material, equipment, project-specific gross income)
    • Installation (requirements allowing materials to acclimate)
    • Documentation procedures (submittals)
    • Permits/inspections based on permits
    • Types of plans (floor, framing, truss erection, foundations)
    • Symbols and legends
    • Scales and dimensions
    • Views, sections, and details
    • Schedules (window, door)
    • Materials estimating (takeoffs, volumes, measurements, areas, board feet)
  • Excavation/Sitework
    • Demolition methods and equipment
    • Federal requirements related to hazardous materials (asbestos, lead abatement)
    • Protection procedures prior to demolition (vegetation, structures, wildlife, artifacts)
    • Soil (testing, types, characteristics, compaction, material options)
    • Code requirements of drainage and water work
    • Trenching and excavating (methods, techniques)
    • MISS DIG
    • Soil erosion and sedimentation control
    • Grading (cut and fill, rough, finish, sloping)
    • Backfilling
    • Dewatering
  • Footings and Foundation Walls
    • Installation of wood foundations and columns (site requirements, conditions)
    • Installation methods, materials and requirements (structural, fastening, sillplates, foundation, moisture barriers, drainage, damp proofing, waterproofing, sealants)
    • Construction requirements (foot loading versus compacting of soil)
    • Footings (types, dimensions, specifications)
    • Foundation walls (concrete, masonry, installation of insulating concrete form, wood)
    • Concrete slab on grade
    • Anchoring systems
  • Concrete
    • Prior to concrete placement
    • Portland cement concrete mix design and additives
    • Installation of post pads
    • Methods for concrete reinforcement installation (code requirements, wire mesh, rebar, fiber)
    • Ingredients and aggregates
    • Characteristics
    • Types
    • Testing (slump, strength)
    • Flatwork (driveway, sidewalk, floors)
    • Placement of Construction Joints
    • Finishing (troweling, bull floating, broomed)
    • Curing
    • Admixtures (chloride, retarding agents)
    • Formwork
    • Proportions
    • Suspended concrete slabs and above-grade concrete
  • Carpentry
    • Bracing, bridging, and hangers
    • Span Tables
    • Fastening schedules
    • Loads (live, dead, floor load schedule, roof, wind)
    • Notching and boring
    • Sole, top plates, and band (rim) joists
    • Floor Framing (joists, truss joists)
    • Floor Decking/Subflooring
    • Wood framing for walls (exterior, sheathing, load bearing, kneewalls, wind bracing, partitions, interior soffits)
    • Fire blocking and draft stops
    • Roof framing (rafters, decking, dormers, valleys, soffits, fascia, pitch, crickets, saddlers)
    • Roof trusses (uplift, bracing)
    • Framing for Openings (vents, windows, doors, skylights, fireplaces, chimneys, attic access, crawl space, house fans)
    • Secondary weather plane (house wrap)
    • Stairs (interior, exterior, landings, railings, balusters, rise, run, clearances, width)
    • Exterior decks (fasteners, height, rails, materials, footings)
    • Wood flooring
    • Cabinetry
    • Finish trim
    • Molding
    • Michigan barrier free design requirements for ramps
  • Masonry
    • Effects of environmental conditions on construction
    • Application methods for mortar and grout
    • Reinforcement methods and materials for installations
    • Installation methods and materials (load bearing, non-load bearing)
    • Installation requirements (veneers, wall ties)
    • Fireplace and chimney requirements
    • Brick (walls, veneer, paver, fireplace)
    • Stone (manufactured, natural)
    • Construction details (brick ledge, lintels, headers, pilasters, piers, sills, keystones, patterns and bonds, forms and arches)
    • Anchors, ties, and reinforcement
    • Expansion/ control joints
    • Jointing
    • Flashing through (wall flashing, weep holes)
  • Roofing
    • Covering materials, installation and fastening methods
    • Materials and installation methods (flashing, gutter and downspout system)
    • Ventilation systems (ridge, box, soffit)
    • Drip edges and diverters
    • Water shield membranes (ice and rain guard)
    • Valleys
    • Reroofing
  • Insulation
    • Blanket
    • Batt (Faced)
    • Batt (Unfaced)
    • Blown-in (fiberglass, cellulose)
    • Sprayed-on foam
    • Foam Board
    • Fiberboard
    • Foil-Faced (reflective)
    • Energy code certification (rvalues, vapor barriers, reflectivity)
    • Sound
  • Ventilation
    • Attic (gable vents, baffles)
    • Foundation/crawl space
    • Bathroom
  • Windows, Doors and Skylights
    • Building code requirements related to energy performance requirements
    • Methods to prevent water and air intrusion around windows, skylights, and doors
    • Egress/Escape requirements
    • Safety glazing
    • Window sizing
    • Types of windows and doors (storm, screen, pocket door, bifold door, sliding windows, casement windows)
    • Size
    • Materials and parts
    • Installation and flashing
  • Siding Installation
    • Elements and installation (backer boards, flashing, vents, starter strips, fascia, soffits)
    • Types of siding (vinyl, wood, shingles and shakers, aluminum, steel, concrete)
  • Interior and Exterior Finishes
    • Methods and materials for installation (flooring, wall, ceiling, cabinetry, countertops, trim, molding, and handrails)
    • Application methods (wall finishes)
    • Drywall
    • Exterior painting and staining
    • Tile and marble
  • Specialties
    • Pool systems and barriers
    • Smoke/Carbon monoxide detectors
  • Safety and Employee Protection Including MIOSHA
    • Job Site Safety and Personnel Training (MIOSHA, First Aid and emergency procedures)
    • Protection of Workers and the Public (methods to control vehicular traffic)
    • Requirements for loading, transporting, unloading materials and equipment
    • Operating hoisting equipment
    • Safety Data Sheet (SDS)
    • Hazardous materials (propane, paint, gasoline, solvents)
    • Waste Disposal (non-hazardous and hazardous)
    • Excavation safety
    • Ladders and scaffolds
    • Fall protection
    • Roof, deck and ladder jacks
    • Lifting and digging equipment
    • Barricade and sign requirements
    • Manufacturer's safety recommendations for tools and equipment
Examination sources