Getting your builder’s license in Michigan takes work, dedication, and investment. But keeping it? That’s where many professionals slip up.
Every year, builders across the state lose their licenses — not because they lack skill, but because of avoidable administrative, ethical, or compliance mistakes. These oversights can lead to suspension, fines, or even permanent revocation from the Michigan Department of Licensing and Regulatory Affairs (LARA). If you’re serious about protecting your business and your reputation, here are the five biggest mistakes to steer clear of.
1. Ignoring Continuing Education Requirements
One of the most common reasons builders get into trouble is simply failing to complete their continuing competency requirements.
Michigan law requires all licensed residential builders to complete continuing education (CE) before renewing their license. LARA doesn’t send reminders — it’s your responsibility to track your renewal date and CE hours.
Missing the deadline can delay your license renewal and potentially result in a lapse that makes your work illegal until reinstated.
2. Taking on Projects Beyond License Scope
Not every builder’s license covers every type of work. Some contractors overstep by taking jobs that require specialty licensing or different permits.
For example, performing HVAC, plumbing, or electrical work without proper credentials can lead to penalties — even if you subcontract the task. Always verify that you and your crew are operating within your legal license scope.
3. Failing to Pull Proper Permits
Skipping permits might seem like a shortcut to save time, but it’s one of the fastest ways to attract enforcement action from local building departments and LARA.
Unpermitted work can trigger:
Stop-work orders
Costly fines
Mandatory reconstruction
Formal complaints that threaten your license
Always pull the right permits before starting a project — your credibility depends on it.
4. Cutting Corners on Safety or Compliance
Michigan takes workplace safety and environmental compliance seriously. Builders who ignore lead-safe work practices, skip RRP certification, or disregard OSHA rules risk not only fines but also license suspension.
If you work on homes built before 1978, you must maintain EPA RRP Lead Paint Certification and follow approved containment and cleanup procedures.
Need to stay compliant? Enroll in our EPA RRP Lead Paint Certification Course.
5. Poor Recordkeeping and Communication
Finally, many builders lose their license not because of major violations, but because of client disputes and missing documentation.
If a homeowner files a complaint, LARA will ask for records: contracts, change orders, payment history, and permits. Without them, your defense becomes nearly impossible.
Maintain clear written agreements, document every change, and communicate transparently to avoid misunderstandings that could escalate.
Protecting Your License Means Protecting Your Livelihood
Mistakes happen — but in this industry, a single oversight can cost you far more than money. It can damage your reputation, delay projects, and shut down your ability to work.
At the Michigan Institute of Real Estate, we help Michigan builders stay compliant with continuing education, RRP certification, and professional development courses that keep your license — and your business — in good standing.
Ready to safeguard your Michigan builder license?
Enroll in your next continuing education or compliance course today and keep your business protected.
