General vs. Specialty Contractor Rules in Michigan

The first division: building versus altering

LARA describes Article 24 of Public Act 299 of 1980 as covering two distinct populations in one sentence: persons engaged in the construction of "a residential structure or combination residential and commercial structure", and persons who undertake "the repair, alteration, addition, subtraction or improvement" of such a structure for compensation other than wages for personal labour. That sentence is the fault line. A Residential Builder licence addresses the first half. A Maintenance & Alteration Contractor licence addresses the second.

The Residential Builder licence is the broader of the two in what it lets you construct, but it is not a universal licence. The Maintenance & Alteration licence is narrower in kind but is issued by craft, so its scope depends entirely on which crafts you qualified for. LARA lists the M&A crafts as carpentry, concrete, excavation, insulation work, masonry, siding, roofing, screens and storm sash, gutters, tile & marble, house wrecking, swimming pools and basement waterproofing, and states that the crafts a contractor is qualified to practise "are listed on the license".

That last sentence is the single most useful thing to understand about Michigan scope. There is no category you belong to that implies a scope. The document in your hand names the crafts, and any craft that is not on it is not yours to bid. Adding one later is a licensing action, not a business decision, so it is worth listing every craft you seriously intend to sell at the point of application rather than discovering the gap in front of a customer.

Official sources: LARA Bureau of Construction Codes: Residential Builders; LARA Maintenance & Alteration Contractor License Information

The second division: the three skilled trades are outside this programme

MCL 339.2403 exempts three categories of licensed trade contractor from Article 24, and each exemption is expressly limited to that trade's own work. A licensed electrical contractor is exempt, but the exemption "applies only to the electrical installation, electrical maintenance, or electrical repair work that is performed by the electrical contractor". A licensed plumbing contractor is exempt only for plumbing installation, maintenance or repair work. A licensed mechanical contractor is exempt only for mechanical installation, maintenance or repair work.

The consequence runs both ways, and it is where most cross-trade mistakes happen. A residential builder licence does not authorise you to perform electrical, plumbing or mechanical work, because those are licensed under their own programmes rather than being crafts on an M&A licence. And a master plumber who takes a whole-bathroom remodel is only exempt from Article 24 for the plumbing portion, not for the tiling, framing or drywall.

The three programmes are not interchangeable with each other either. LARA runs plumbing, electrical and mechanical as separate applications, separate examinations and separate experience ladders, and the mechanical programme further subdivides into work classifications that are each earned individually. Planning a business that spans two of them means planning for two credentialing tracks and, in most cases, two licensed people.

Official sources: Michigan Legislature: MCL 339.2403; LARA Bureau of Construction Codes Licensing Section; LARA Plumbing Examination, Licensing and Application Information; LARA Electrical Examination, Licensing and Application Information; LARA Mechanical Examination, Licensing and Application Information

What each trade licence actually costs you in years

Plumbing is a ladder. LARA states that a journey plumber must be at least 18 and have "not less than 6,000 hours experience attained over a period of not less than 3 years as an actively registered plumbing apprentice", supervised by a licensed master or journey plumber, and must pass both a written and a hands-on practical skills examination "on a single application". A master plumber must have 4,000 hours as a journey plumber "over a period of not less than 2 years immediately preceding the date of the application", and LARA warns that any lapse in licensure in those two years will not meet the requirement. A plumbing contractor licence, under MCL 339.6111 as LARA cites it, requires the applicant to hold a master plumber licence or employ one as a representative, and only a sole proprietor, a partner, an officer of a corporation or a member of an LLC may apply. LARA states flatly that "the contractor license will not be issued without master plumber representation".

Electrical is longer. A journeyman must be at least 20 with 8,000 hours and four years as an electrical apprentice in work related to electrical construction, maintenance or wiring, supervised by a Michigan journeyman or master, and must pass the exam "by scoring at least 75%". A master electrician must be at least 22, have 4,000 hours as an electrical journey and have held that licence at least two years, and LARA states the cumulative requirement as "at least 12,000 hours of experience over AT LEAST 6 years". The contractor licence itself has no examination, but requires an associated master electrician who must live in Michigan if the applicant lives out of state, and LARA notes a master electrician "can only associate with one Electrical Contractor at a time". The same structure applies to fire alarm and sign work through the Fire Alarm Specialty Technician and Sign Specialist licences.

Mechanical is licensed classification by classification. LARA requires "a minimum of 3 years experience in each of the work classifications applied for" and that you "take and pass an examination for each work classification desired". The published classifications are hydronic heating and cooling and process piping, HVAC equipment, ductwork, refrigeration, limited heating service, unlimited heating service, limited refrigeration and air conditioning service, unlimited refrigeration and air conditioning service, fire suppression, specialty licence, solar heating and cooling, solid fuel and vented decorative gas appliances, LP distribution piping, fuel gas piping, and fuel gas piping and venting. LARA states that licensed mechanical contractors "can perform installations, alterations, servicing, and secure permits".

Official sources: LARA Plumbing Examination, Licensing and Application Information; LARA Electrical Examination, Licensing and Application Information; LARA Mechanical Examination, Licensing and Application Information

Scope discipline, in practice

Write your permitted scope down and put it where estimates get written. On the Article 24 side that means the exact craft list printed on your M&A licence, or the Residential Builder licence if you hold that instead. On the trades side it means the specific classifications on the mechanical licence, or the master representation your electrical or plumbing contractor licence depends on. Anything outside those lists is a subcontract, not a line item you self-perform.

Then watch the dependency chains, because Michigan builds several of them. LARA states that a builder or M&A company licence "will be placed in Section 2405 Suspension" if the qualifying officer fails to renew the individual licence. It states that without a master electrician, "an Electrical Contractor's license is put on hold", and that a master electrician can associate with only one electrical contractor at a time. It states that a plumbing contractor licence will not issue without master plumber representation. In each case a single person leaving can take the company's ability to trade with them.

Finally, remember that scope and code are separate obligations. Michigan Administrative Code R 338.1551(5) requires that "all construction, renovations, alterations, or repairs must comply with the Michigan construction code", enforced locally through building departments and permits, and LARA notes that the City of Detroit issues its own electrical licences and registrations locally. Holding the right state licence is necessary; it does not answer the permit question on any particular job.

Official sources: LARA BCC License/Registration Renewals; LARA Electrical Examination, Licensing and Application Information; LARA Plumbing Examination, Licensing and Application Information; Michigan Administrative Code R 338.1511 to R 338.1566

Check the official page yourself before you file or sign

Michigan publishes its contractor rules across at least four agencies: LARA's Bureau of Construction Codes for the licence, LARA's Corporations Division for the entity, the Department of Treasury for tax registration and returns, and the Workers' Disability Compensation Agency for coverage. No single page carries all of it, and each one changes on its own schedule.

Before you file an application, sign a contract, or hire anyone, open the specific LARA page for your licence type, confirm the hours, the renewal date and the fee, and keep a dated copy of what you read. LARA publishes a licensing phone line at 517-241-9316 and an email address for the Licensing Section, and it warns that "application fees are non-refundable" and that processing "may be up to 3-5 weeks". A ten-minute call before you pay is cheaper than a non-refundable application filed into the wrong licence type.

Official sources: LARA Bureau of Construction Codes Licensing Section; LARA Bureau of Construction Codes: Residential Builders