1.3 Prelicensure Education, Application, Renewal & Continuing Competency
Key Takeaways
MCL 339.2404b requires 60 hours of approved prelicensure education, including at least 6 hours in each of 7 areas, with the remaining 18 hours in approved electives.
Licenses are issued for 3 years, and at renewal the licensee must state that they have a current copy of the Michigan Residential Code and have met continuing competency requirements.
A licensee first licensed on or after January 1, 2009 must complete 21 hours per 3-year cycle, including at least 3 hours each year, during the first 6 years. After that, 3 hours per cycle are required.
Licensees must keep continuing competency documentation for at least 5 years, and LARA may audit a percentage of renewals.
A license lapsed more than 3 years requires 60 hours of prelicensure education and a new exam for relicensure.
Basic Eligibility
LARA's licensing checklist for residential builders and M&A contractors has four steps: be at least 18 years old, complete the required prelicensure courses, submit a completed application, and pass the exam. Under MCL 339.2404(1), LARA may require evidence of good moral character from the applicant, and for a company, from each partner, officer, member, or shareholder. The applicant must also submit a state-issued photo ID.
The Individual License Application (Form BCC-2000)
LARA's current individual application form, BCC-2000 (revised June 2024), sets out several details that applicants often get wrong:
- One license type: an individual may hold either an Individual Residential Builder license or an M&A license, not both. A Residential Builder license already covers complete residential structures and maintenance and alteration work.
- Trades: an M&A applicant must mark at least one trade, but not all trades. Each trade has a letter code. Roofing is trade (M). The others are Carpentry (A), Concrete (B), Excavation (D), Insulation Work (G), Masonry (I), Siding (K), Screens & Storm Sash (N), Gutters (O), Tile & Marble (P), House Wrecking (R), Swimming Pools (S), and Basement Waterproofing (T). The trades a contractor may perform are listed on the license.
- Fees: the non-refundable application fee is $195 for an Individual M&A Contractor or Individual Residential Builder, and $185 for relicensure. The fee is waived for veterans who apply under the veteran option.
- Attachments: a state-issued photo ID and the 60-hour prelicensure course certificate. An applicant whose photo ID is from another state must also submit a notarized Consent to Service of Process.
- Business address: the Michigan business address cannot be a post office box.
- Exam fees go to PSI, not the state. Since June 1, 2008, candidates pay the exam fee to PSI when they schedule. The LARA application fee is separate.
The 60-Hour Prelicensure Requirement
Since June 1, 2008, MCL 339.2404b(1) has required first-time applicants to complete 60 hours of approved prelicensure courses, with at least 6 hours in each of these areas:
| Required area | Minimum hours |
|---|---|
| Business management, estimating, and job costing | 6 |
| Design and building science | 6 |
| Contracts, liability, and risk management | 6 |
| Marketing and sales | 6 |
| Project management and scheduling | 6 |
| The current Michigan Residential Code | 6 |
| MIOSHA construction safety standards | 6 |
| Approved electives | 18 |
| Total | 60 |
Courses must be approved by the department and taught by an approved sponsor. Classroom, online, and hybrid formats are allowed. Distance learning must meet the interactive and assessment requirements of R 338.1566. Under R 338.1562, the sponsor issues a certificate of completion listing the sponsor, participant, completion date, course approval number, and hours in each area of competency. Sponsors keep attendance records for 5 years.
Military Exemption
MCL 339.2404b(11) exempts some veterans from the prelicensure requirement. The veteran must have served in the armed forces doing construction work, been separated under honorable conditions (shown by a DD214 or similar form), and provide an affidavit from a commanding officer or supervisor confirming entry-level experience or basic knowledge in each area of competency. If the affidavit covers only some areas, LARA may grant partial credit.
License Term and Renewal
Under MCL 339.2404(5), LARA issues builder and M&A licenses for 3 years. At renewal, MCL 339.2404(6) requires the licensee to state two things: that they have a current copy of the Michigan Residential Code, and that they have met the continuing competency requirements. Renewals are processed online through LARA's licensing system.
Continuing Competency
The hours depend on when you were first licensed and how long you have held the license (MCL 339.2404b(2) and LARA's renewal guide):
| Licensee | Requirement each 3-year cycle |
|---|---|
| Originally licensed before January 1, 2009 | 3 hours: 1 hour of building codes and laws, 1 hour of safety, 1 hour of changes in construction and business management laws |
| First licensed on or after January 1, 2009, during the first 6 years (two cycles) | 21 hours per cycle, with at least 3 hours in each calendar year; includes the 1 + 1 + 1 core hours plus 18 hours of other approved topics |
| First licensed on or after January 1, 2009, after more than two 3-year cycles | 3 hours, with the same 1 + 1 + 1 core split |
| Licensee disciplined by the department | An added 3 to 21 hours in the next full cycle, as the department orders |
Under R 338.1564, credit is based on 50 minutes of continuous instruction per hour. Qualifying activities include approved courses, college courses, a passing score on the department's comprehensive exam (5 hours), mentoring programs, attending Residential Builders' Board or Construction Code Commission meetings, participating in ICC or Bureau of Construction Codes code hearings, teaching approved courses, and publishing trade articles. The "other topics" include accounting and the Building Contract Fund Act, personnel management, customer service, green building, and lead, mold, and asbestos mitigation.
Records and Audits
- Keep proof of every activity for at least 5 years (MCL 339.2404(7)). You do not send documentation with the renewal.
- LARA may audit a predetermined percentage of renewals. Failing an audit results in a department-initiated complaint (MCL 339.2404b(8)).
- A request to waive continuing competency must reach the department before the license cycle expires (R 338.1565).
Display and Identification
LARA's guidance for homeowners says the license must be displayed at the place of business. Contractors and salespersons carry a pocket card and should show it when asked. Salespersons must show their identification card to every prospective customer (R 338.1525).
Letting a License Lapse
LARA's relicensure rules turn on how long the license has been lapsed:
- 61 days to 3 years: file the relicensure application and fees and show good moral character.
- More than 3 years: complete 60 hours of approved prelicensure education, file the application and fees, show good moral character, and pass the current license exam.
Remember that a lapsed license counts as no license (MCL 339.601(3)). Any contracting during the lapse is unlicensed practice, and it also affects your ability to sue for payment or claim a lien.
Exam Traps
- The CE threshold is 6 years (two cycles), not 3 years.
- The core hour is "changes in construction and business management laws," not marketing.
- Renewal requires a statement that you have the current MRC. The MRC now in effect is the 2015 edition (Section 2.1).
A roofer first licensed as an M&A contractor in 2024 is renewing for the first time. What continuing competency must the roofer have completed during the cycle?
3 hours total, 1 hour each in codes, safety, and law
21 hours, with at least 3 hours in each calendar year, including the code, safety, and law hours
60 hours matching the prelicensure curriculum
None, because continuing competency begins with the second renewal
How long must a Michigan licensee keep documentation of continuing competency activities?
Until the next renewal is approved
2 years
3 years
At least 5 years
An M&A roofer's license lapsed four years ago. What does LARA require for relicensure?
Only the relicensure application, fees, and good moral character
A late fee and 3 hours of continuing competency
A new exam, with no education requirement
60 hours of approved prelicensure education, the application and fees, good moral character, and passing the current exam
An applicant who already holds an Individual Residential Builder license asks to add the Roofing (M) trade as a separate M&A license. What does LARA's application form say?
The applicant must hold both licenses to do roofing
The applicant may add all 13 M&A trades to the builder license
The applicant must retake only the roofing portion of the exam
An individual may hold either a Residential Builder license or an M&A license, not both, and the builder license already covers maintenance and alteration work
Sections you finish are checked off in the contents.