Two types of contractor licenses are issued at the state level in Michigan: residential builder licenses and maintenance and alteration (M&A) licenses. Commercial builders, also called general contractors, are only required to be licensed in certain local jurisdictions. Learn how to get a contractor�s license in Michigan with this simple guide.
Who Needs a Michigan Contractor�s License?
The Michigan Licensing and Regulatory Affairs Department issues both residential builder licenses and M&A licenses. The maximum project size you can work on without being licensed is $600.
A residential builder license allows you to build, repair, alter, maintain, or completely remodel residential structures and mixed use structures that house both residential and commercial facilities. You will have to subcontract electrical, mechanical, and plumbing work to a specially licensed professional.
An M&A license allows you to do one specific type of work, such as carpentry, excavation, masonry, or roofing. If you offer more than one of these services, you will need to obtain and M&A license in each specialty. If you work as a general contractor, you�ll need to find out whether the municipalities in which you work require you to be licensed locally.
The Licensing Process
Applicants for licensing as a residential builder of M&A contractor must:
Be at least 18 years old
Have a valid Michigan driver�s license or state ID
Take a 60-hour pre-licensing educational course and pass the licensing exam
Demonstrate financial stability
Requirements for obtaining a commercial construction license are established at the local level. While there is no statewide requirement for bonding of contractors, some jurisdictions do require certain commercial/general contractors to obtain a bond as part of the local licensing process. For example, St. Clair Shores requires asphalt, concrete, and curb cutter contractors to be bonded, and Oakland requires certain contractors on public works projects to obtain a surety bond.
Why Is a Surety Bond Required?
The jurisdictions that require contractors to purchase a surety bond do so to provide protection for project owners against financial losses stemming from a contractor�s insolvency or unlawful or unethical actions. This is particularly important for public works projects funded by taxpayer dollars. The bond acts as the contractor�s guarantee to abide by all applicable laws and industry standards and provides funds to compensate claimants.
How Does a Contractor�s Surety Bond Work?
Any violation by the contractor of the terms of the surety bond that results in a financial loss can result in a claim against the bond. The surety company will first investigate to make sure the claim is valid. Then, if the contractor doesn�t pay the claim promptly, the surety company will pay it.
However, the legal responsibility for paying claims belongs to the contractor, not the surety company.� So the surety company will pursue the contractor for reimbursement of claims paid on the contractor�s behalf.
Understanding the Costs of Surety Bonds for Michigan Contractors
If you need to purchase a surety bond as part of the licensing process, you�ll pay a premium that is a small percentage of the required bond amount. The surety company you choose will set the premium rate based largely on your personal credit score. The better your credit, the lower your premium rate will be, potentially as little as 1% of the bond amount.
Get Bonded Today
If you need to purchase a surety bond to become licensed locally as a commercial/general contractor, apply online or give us a call today, and we�ll get you the best rate possible.
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Frequently Asked Questions
What are the Michigan contractor license exam requirements?
The Michigan contractor license exam requirements include passing a trade-specific exam, providing proof of experience, and submitting a completed application with the necessary supporting documents.
What is the cost of a contractors license in Michigan?
The cost of a contractors license in Michigan varies depending on the type of license and can range from $100 to $500.
Can I get a contractors license with a felony in Michigan?
Obtaining a contractor's license with a felony in Michigan may be possible, depending on the nature of the felony and the state's licensing requirements. The process involves meeting specific criteria and undergoing a thorough review by the licensing authority.
Can I get a Michigan contractor license online?
Obtaining a Michigan contractor license requires completing an application and submitting it to the state, along with the necessary documentation. The process cannot be completed entirely online.
How long does it take to get a Michigan contractor license?
The process of obtaining a Michigan contractor license typically takes between 2-4 months, depending on the specific requirements and the applicant's submission timeline.
How do I obtain a Michigan contractor license?
To obtain a Michigan contractor license, individuals must meet the state's requirements, which include passing an exam, providing proof of insurance, and submitting a license application with the necessary fees.
What type of contractors licenses are available in Michigan?
The types of contractor licenses available in Michigan include general contractors, electrical contractors, plumbing contractors, and mechanical contractors, each with specific requirements and scope of work.
What are the requirements for a Michigan contractor license?
The requirements for a Michigan contractor license include obtaining a state-issued license, passing an exam, and meeting insurance and bonding requirements. Applicants must also have relevant experience and comply with regulations set by the Michigan Department of Licensing and Regulatory Affairs.
Can I transfer my out-of-state contractor license to Michigan?
Transferring an out-of-state contractor license to Michigan is possible, but requires meeting specific requirements and obtaining the necessary approvals from the Michigan Department of Licensing and Regulatory Affairs.
How long does it take to get licensed and bonded?
The time it takes to get licensed and bonded can vary, but typically it takes between 2-4 weeks to complete the necessary steps and receive the required licenses and bonds.
How do I renew my contractors license in Michigan?
To renew your contractors license in Michigan, you need to submit a renewal application along with the required fees to the Michigan Department of Licensing and Regulatory Affairs prior to the expiration of your current license.
What are the education requirements for a contractors license in Michigan?
The education requirements for a contractor's license in Michigan include completing a state-approved training program and passing an exam that covers construction codes, safety, and business management.
How do I apply for a contractors license in Michigan?
To apply for a contractor's license in Michigan, you must submit a completed application, pass a licensing exam, provide proof of insurance, and pay the required fees. The process is regulated by the Michigan Department of Licensing and Regulatory Affairs.
Do I need a contractors license to work in Michigan?
In Michigan, a contractor's license is generally required for any construction work exceeding $600 in value. The specific licensing requirements depend on the type of construction work and local regulations.
What is the cost of getting licensed and bonded?
The cost of getting licensed and bonded can vary depending on the specific requirements of your business and location, but typically ranges from a few hundred to several thousand dollars.
What types of contractors need a license in Michigan?
In Michigan, contractors such as electricians, plumbers, HVAC technicians, and builders generally require a license to operate legally.
Do I need liability insurance for a contractors license in Michigan?
In Michigan, contractors are required to have liability insurance to obtain a contractor's license. This insurance protects the contractor and their clients from potential liability claims related to the work performed.
How do I prepare for the exam?
Preparing for the exam involves reviewing course materials, practicing sample questions, and managing your time effectively to ensure you are well-equipped to perform on the day of the exam.
What documents are needed for application?
The documents needed for an application typically include a completed application form, identification documents, proof of qualifications, and any other supporting materials as required by the specific application.
Is a background check required for licensing?
A background check is typically required for obtaining a license, as it helps ensure the applicant meets the necessary qualifications and credentials.
Can I work as an apprentice without a license?
Working as an apprentice without a license may be possible, but the requirements vary by location and occupation. It's important to research the specific licensing and certification requirements for the apprenticeship in your area.
What are common reasons for license denial?
Common reasons for license denial include a poor driving record, failure to meet medical or vision requirements, outstanding fees or fines, or a criminal history that disqualifies the applicant.
Are there continuing education requirements for contractors?
Continuing education requirements for contractors vary by state and industry. Many states require contractors to complete a certain number of approved training hours annually to maintain their licenses and stay up-to-date with industry standards and regulations.
Can I reapply immediately if my license is denied?
If your license is denied, you can reapply immediately, but the application process may take some time to be reviewed and a decision to be made.
What is the renewal fee for a contractor’s license?
The renewal fee for a contractor's license is typically between $50 to $300, depending on the state and the type of contractor's license.
Are out-of-state licenses recognized in Michigan?
Out-of-state licenses are generally recognized in Michigan, allowing drivers to operate a vehicle with a valid license from another state.
What are the bonding requirements for contractors?
The bonding requirements for contractors are specific legal and financial obligations that must be met in order to obtain a contractor's license and engage in construction work.
How can I check the status of my license?
To check the status of your license, you can visit the website of the issuing authority or contact them directly. They can provide information on the current status and any renewal requirements.
What are the penalties for working unlicensed?
Working without a license can result in fines, legal penalties, and even criminal charges. The specific penalties depend on the nature of the work and local regulations, but can include significant financial penalties and potential imprisonment.
How often must I renew my contractors license?
The renewal frequency for a contractor's license varies by state, but typically it is required annually or every one to two years.
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