Licensed General Contractor in Michigan: How to Verify Before You Hire

Michigan requires residential contractors to hold a Residential Builder licenseissued by the Department of Licensing and Regulatory Affairs (LARA) at michigan.gov/lara. LARA licenses residential builders, maintenance and alteration contractors, and several specialty trades. For anyone building or significantly renovating a Michigan home, verifying the contractor's LARA license is a critical first step.

What Is Michigan's Residential Builder License?

Michigan's Residential Builder license authorizes contractors to construct, alter, repair, or improve new or existing residential structures. LARA issues this license through the Bureau of Construction Codes. Applicants must pass a licensing exam, demonstrate relevant experience, and carry appropriate insurance. The Residential Builder license is the primary credential for general contractors working on Michigan homes.

Michigan also issues a Maintenance and Alteration Contractor (M&A) licensefor work that involves a single trade or maintenance-type work on residential properties. M&A contractors are not authorized to manage multi-trade projects as a general contractor would. If you are hiring for a full renovation involving multiple trades, confirm the contractor holds a Residential Builder license — not just an M&A license.

LARA also regulates specialty trades separately. Electrical contractors need a separate license from the Michigan Department of Licensing and Regulatory Affairs. Plumbing and mechanical contractors have their own licensing requirements. A Michigan Residential Builder managing a project must use licensed subcontractors for each regulated specialty trade, and you should verify those subcontractor licenses independently.

How Do Michigan Contractor License Requirements Protect Homeowners?

Michigan's contractor licensing system exists to protect homeowners from the consequences of incompetent or fraudulent construction. The state experienced a significant wave of contractor fraud during the housing crisis of 2008–2012, when unlicensed operators entered the market and performed defective work on distressed properties. LARA's licensing requirements create a barrier to entry and a regulatory backstop for consumers.

Licensed Michigan contractors are subject to disciplinary action by LARA for violations including abandoning projects, accepting payment without intent to perform, or performing defective work. According to LARA, the bureau processes hundreds of contractor license complaints annually, with the most common issues being abandonment and failure to complete work. The licensing system gives homeowners a formal complaint channel they would not have if they hired an unlicensed contractor.

What Insurance Does a Michigan Residential Builder Need?

LARA requires Michigan Residential Builder licensees to carry general liability insurance as a condition of licensure. The standard minimum for residential contractors in Michigan is $100,000 per occurrence, though many carry more. Michigan workers' compensation is required for employers with three or more employees, or for employers with one or more employees who work more than 35 hours per week for 13 or more weeks annually.

Ask for a current certificate of insurance before any Michigan contractor begins work. Verify the certificate is current by calling the insurance company listed. Contractor insurance certificates can be forged — a direct call to the insurer is the only reliable verification. Also ask whether the contractor carries builder's risk insurance for projects under construction, which covers damage to incomplete work.

How Do You Verify a Michigan Contractor's License?

LARA maintains an online license search tool at michigan.gov/lara. Search by business name, individual name, or license number. The results show the license type (Residential Builder or M&A), status, and expiration date. Confirm the status shows “active” and that the license type matches the scope of your project.

Michigan's LARA database also shows whether any disciplinary actions have been taken against the licensee. Even a single past suspension for abandonment or fraud is worth investigating before you hire. Ask the contractor directly about any disciplinary history and request documentation of the resolution.

CheckLicensed.com searches Michigan LARA records and returns license status, type, and expiration information for $0.99 per lookup. For any Michigan residential construction project, this verification takes less than a minute and provides the basic assurance that your contractor is legally authorized to do the work they are proposing.