In Michigan, county-level authorities often require contractors to obtain a Contractor License Bond as part of the licensing process. This bond guarantees that contractors will fulfill their construction obligations and abide by state laws. A contractor license bond is a form of financial protection for Michigan's state and the public. A contractor license bond is required in the following Michigan counties: Bloomfield, Clinton, Detroit, Eastpointe, Genesee, Lansing, Roseville, Shelby, Southfield, St. Clair, Walker, Warren
The licensing for contractors in Michigan is regulated by the Michigan Department of Licensing and Regulatory Affairs (LARA). LARA oversees various occupational and professional licensing programs, including contractor licensing, to ensure contractors comply with state laws and regulations. Within LARA, the Bureau of Professional Licensing typically handles the responsibility for contractor licensing.
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The bond amount in Michigan varies depending on the contractor’s license type and the work being done.
Bond Type Bond Amount + Pricing Department of Licensing and Regulatory Affairs Security Alarm Contractor Bond $25,000, starting at $225 Bloomfield Township Sewer Contractor Bond $10,000, starting at $90 City of Detroit Fire Repair Contract Solicitor Bond $5,000, starting at $90 City of Detroit Right of Way Bond $2,500, starting at $90 City of Detroit Wrecking Contractor Bond $50,000, starting at $225 City of Eastpointe Sewer Contractor Bond $25,000, starting at $113 Genesee Resident Sewage Disposal Contractor Bond $35,000, starting at $473 City of Lansing Demolition Contractor Registration Bond $10,000, starting at $90 City of Roseville Cement Contractor Bond $2,000, starting at $90 City of Southfield Contractor Bond $5,000, starting at $90 City of St. Clair Shores Marine Contractor Bond $1,000, starting at $90 City of Walker Highway Contractor Bond $2,000, starting at $90 City of Warren Sidewalk Contractor Bond $1,500, starting at $90 Clinton Township Contractor Bond $5,000, starting at $90 Livingston County Sewage Disposal Contractor Bond $25,000, starting at $225 Shelby Township General Contractor Bond $1,000-$50,000, starting at $90
In Michigan, several types of contractors are required to obtain a contractor license to conduct their business legally. This includes the following category of contractors:
Keep in mind that general contracting businesses, such as residential builders and maintenance and alteration contractors, do not need a license)/mileg.aspx?page=getObject&objectName=mcl-339-2403&highlight=$600) for projects valued at less than $600. However, this exemption won't apply if the construction work is part of a larger or significant project, regardless of whether it's done by the same or a different contractor. Moreover, dividing the project into smaller contracts under $600 each to evade the act would also invalidate the exemption.
Determining the contractor category that applies to you in Michigan depends on the nature of your construction work. Here’s a description of each contractor to help you identify what category you fall into:
Involved in constructing, repairing, altering, adding, or improving residential structures such as single-family homes, multiunit residential buildings, and townhouses.
Note that a residential builder can construct a new home from the foundation or perform various repairs. While the builder can take on the entire project, they must subcontract specific tasks like plumbing, electrical, and mechanical work (heating, ventilation, air conditioning).
Involved in performing repair, maintenance, renovation, or remodeling work on existing residential or commercial structures like carpentry and electrical work. This includes:
Note that maintenance and alteration contractors are limited to providing specific trades and services, and they are allowed to take contracts solely within the scope of their licensing, regardless of whether the project involves new construction or remodeling.
Engaged in electrical work, including installation, repair, or alteration of electrical systems
Specializes in installing, repairing, or altering mechanical systems such as heating, ventilation, air conditioning (HVAC)
Responsible for the installation, repair, or alteration of plumbing systems, including pipes, fixtures, and related components
Michigan has different contractor license requirements depending on the type of license needed.
Residential builders working on projects over $600 must get a license. The general requirements are:
Maintenance alteration contractors working on projects over $600 must also get a license. The general requirements are the same as the residential builder contractor:
In the state of Michigan, there are two types of electrical contractor licenses:
The key difference between the two licenses is that a Master Electrician license is for individual electricians, while an Electrical Contractor license is for businesses or individuals who wish to undertake electrical projects and may hire Master Electricians to perform the actual electrical work.
To get a master electrician license, one must:
To get an electrical contractor license:
In the state of Michigan, an applicant applying as a mechanical contractor must have a minimum experience of three years in one of the following work classifications:
To get a mechanical contractor license:
There is a list of mechanical contractor licensing exam reference materials that is available.
In the state of Michigan, there are two types of plumbing contractor licenses:
To get a master plumbing license, one must:
To get a plumbing contractor license:
In Michigan, electrical exams are administered by PSI. Topics covered on the exam includes:
The tests are open-book and allow you to consult the National Electrical Code (NEC) and the Michigan Electrical Code Rules Part 8 for reference.
Topics covered in the electrical contractor license examination includes:
The general process of getting a Michigan Contractor License bond can be condensed into these four steps:
Step 1: Find a reputable surety broker
Step 2: Contact the surety broker and provide them with the necessary information. This includes SSN, contact information, and business name/address
Step 3: Receive a quote from the surety broker, and if you find a suitable price, make payment on the bond.
Step 4: Receive the bond in the mail and file it with the local authority
Feel free to contact us with any questions
A credit score under 650 is considered “bad credit.” However, we have several insurance partners specializing in helping people with bad credit so that we can help. Give us a call or fill out our form, and we’ll shop around to get you the lowest possible quote.
If a business/bondholder fails to fulfill its obligations, its customers can make a claim against the bond. To avoid claims on your Michigan Contractor License bond, you must operate to the guidelines set forth on your license and make good promises to customers.
For ways to prevent claims on your Michigan contractor’s license bond, let’s examine the most frequent reasons for such explains:
To steer clear of claims on your Michigan contractor license bond, we advise contractors to follow these guidelines:
For SuretyNow customers, we will send you via email a PDF bond certificate as proof of bonding. Depending on the type of bond issued, we may also mail you a physical copy of the bond if it’s needed. This is dependent on the requirements of the state or obligee. If the bond is required to be filed, we will handle any filing that needs to be done. For the state of Michigan, the original bond must accompany the license contractor application.
To change any information on your current contractor bond, give us a call or email us. We will file a bond rider form on your behalf to the surety company to make changes to the bond.
Clinton Township Building Department and Permits
Detroit: Apply or Renew License
Detroit: Online Bond Application
Genesee: Sewage Licensing Contractor
Lansing: Demolition Contractors
Michigan Licensing and Regulatory Affairs: Security Alarm Contractors
Roseville Building Department
Roseville Engineering Department: Concrete Permit
Shelby Township Building Department
Southfield County Building Department Site
St. Clair Shores Building Department
Warren City Building Department
[Warren City Clerk: Cement Contractor] (https://www.cityofwarren.org/wp-content/uploads/2019/05/2019CementContractor.pdf)
