Who issues a concrete contractor license in Michigan
Michigan licenses residential concrete work at the state level. The Michigan Department of Licensing and Regulatory Affairs, Bureau of Construction Codes, issues the license, and Article 24 of the Occupational Code, 1980 PA 299, is the governing statute. Concrete is not an inference here. MCL 339.2401 defines a residential maintenance and alteration contractor as a person who, for a fixed sum, price, fee, percentage, valuable consideration or other compensation other than wages for personal labor only, undertakes with another the repair, alteration, addition to, subtraction from, improvement of, wrecking of or demolition of a residential structure, or the building of a garage, or the laying of concrete on residential property. The words "laying of concrete on residential property" sit in the statute itself. MCL 339.2404(3) then lists the crafts and trades a maintenance and alteration contractor license can carry, and both concrete and masonry work appear on that list. A board sits above the licensing function. MCL 339.2402 creates the Residential Builders' and Maintenance and Alteration Contractors' Board with nine members: four licensed residential builders, two licensed maintenance and alteration contractors, and three members representing the general public, at least one of whom is registered under article 10 of the skilled trades regulation act. No Michigan city issues a concrete contractor license that replaces the state license. Cities and counties handle permits and inspections instead, under the single state construction code act. MCL 125.1508b makes the director responsible for administering that act and the code, and lets a governmental subdivision assume administration and enforcement inside its own political boundary by ordinance. A concrete contractor in Michigan therefore answers to the state for the license and to a local enforcing agency for each job.
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The two Article 24 licenses, and which one a concrete contractor needs
Article 24 creates two contractor licenses, not one. MCL 339.2401(a) defines a residential builder as a person engaged in the construction of a residential structure who undertakes for compensation the erection, construction, replacement, repair, alteration, addition to, subtraction from, improvement, wrecking or demolition of a residential structure, or who manufactures, assembles, constructs, deals in or distributes prefabricated, preassembled, precut, packaged or shell housing, or who erects a residential structure other than for the person's own use and occupancy on the person's own property. MCL 339.2401(b) defines the residential maintenance and alteration contractor, and that definition is the one that names concrete. It reaches repair, alteration, addition, subtraction, improvement, wrecking or demolition of a residential structure, building of a garage, and laying of concrete on residential property. The same subdivision also catches the rehabilitate-and-resell pattern: a person who buys, substantially rehabilitates or improves, and resells a residential structure or property more than twice in one calendar year falls under the article, subject to stated exceptions. A flatwork and foundation contractor who pours driveways, sidewalks, patios, garage slabs, basement floors and footings on existing houses is doing maintenance and alteration work and needs the maintenance and alteration contractor license with the concrete craft on it. A contractor who builds the whole house, or who erects the structure itself for sale, needs the residential builder license. The outer limit of both licenses is the definition of "residential structure" in MCL 339.2401(c): a detached one-family or two-family dwelling and all related facilities appurtenant to that dwelling, or a townhouse of not more than three stories above the grade plane in height with a separate means of egress and all related appurtenant facilities.
Sourceslegislature.mi.gov
What the concrete and masonry crafts cover on the license
A maintenance and alteration contractor license is not generic. MCL 339.2404(3) says the license authorizes the holder to work according to the applicant's qualifications, crafts and trades, and that a license includes the following crafts and trades: carpentry; concrete; swimming pool installation; waterproofing a basement; excavation; insulation work; masonry work; roofing; siding and gutters; screen or storm sash installation; tile and marble work; and house wrecking. The same subsection requires that the license specify the particular craft or trade for which the licensee is qualified. The Bureau of Construction Codes repeats that trade list on its own maintenance and alteration contractor page and states that the crafts a contractor is qualified to practice are printed on the license. For concrete work this matters in two places. Flatwork, slabs, footings and poured walls fall under the concrete craft. Block, brick and stone foundation and wall work fall under masonry work, which is a separate line item on the same statutory list. A contractor who does both should carry both crafts rather than assume one covers the other. Basement waterproofing and excavation are two further separate crafts that concrete and foundation contractors often sell alongside the pour, and each has to be on the license to be sold on its own. There is one relief valve. MCL 339.2404(3) does not prohibit a specialty contractor from taking and executing a contract involving the craft the contractor is licensed for plus one or more other crafts, if the work in the other craft is incidental and supplemental to the licensed craft. Incidental and supplemental is the test, so that clause will not carry a separate scope of work sold for its own price.
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Who needs the license and who is exempt
MCL 339.2403 sets out who may act as a residential builder or residential maintenance and alteration contractor in Michigan without a license, notwithstanding article 6. The list is specific. An authorized representative of the United States government, the state, or a county, township, city, village or other political subdivision is exempt. An owner of property is exempt with reference to a structure on that property for the owner's own use and occupancy. An owner of rental property is exempt with reference to the maintenance and alteration of that rental property. An officer of a court acting within the scope of that office is exempt. A person other than a salesperson who engages solely in the business of performing work and services under contract with a licensed residential builder or licensed residential maintenance and alteration contractor is exempt, which is the clause that lets a crew pour concrete as a subcontractor to a licensed general. A person working on one undertaking or project by one or more contracts is exempt if the aggregate contract price for labor, material and any other items is less than $600.00. That small-job exemption is written shut against splitting. It does not apply if the work is only part of a larger or major operation, whether undertaken by the same or a different contractor, or if a division of the operation is made into contracts of amounts less than $600.00 to evade the act. Licensed electrical, plumbing and mechanical contractors are exempt only for the electrical, plumbing or mechanical work they perform. MCL 339.2401(e) adds the wages definition, which carves out an individual paid hourly or daily for personal labor only who does not furnish or agree to furnish the material or supplies used in that labor.
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Commercial and nonresidential concrete work
Article 24 is bounded by its own definition. MCL 339.2401(c) limits "residential structure" to a detached one-family or two-family dwelling with its appurtenant facilities, or a townhouse of not more than three stories above the grade plane with a separate means of egress. Work outside that definition is outside the licensing article. Michigan does not issue a general contractor license at state level for commercial or industrial construction through Article 24, and the construction code act points the same way. MCL 125.1510(3) lists the occupational licenses a permit applicant must disclose when applying for a building permit to perform work on a residential building or residential structure, and the list is residential builder or residential maintenance and alteration contractor, plumbing contractor and plumber licenses under article 11, the electrical contractor and electrician licenses under article 7, and the mechanical contractor license. There is no separate concrete trade license anywhere in that list. A contractor pouring a commercial parking lot, a warehouse slab, tilt-up panels, bridge work or an industrial foundation is therefore not applying for an Article 24 license for that work. Everything else still applies. The job needs a building permit from the local enforcing agency under MCL 125.1510(1). The work has to satisfy the state construction code, and MCL 125.1523 makes it a misdemeanor to knowingly violate the act, the code, or a condition of a building permit, punishable by a fine of not more than $500.00 or imprisonment for not more than 90 days, or both. Workers' disability compensation coverage still follows the thresholds in MCL 418.115. Contractors who run both residential and commercial concrete crews out of one company should assume the residential side pulls the whole company into Article 24.
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Prelicensure education: the 60-hour requirement
Michigan front-loads the classroom. MCL 339.2404b(1) states that beginning June 1, 2008, an applicant for initial licensure as either a residential builder or a residential maintenance and alteration contractor must complete the prelicensure course of study requirements to obtain a license unless exempt under that section. MCL 339.2404b(1)(c) sets the number: an applicant must not receive an initial license unless the applicant successfully completed 60 hours of approved prelicensure courses, including at least 6 hours in each of seven areas of competency. Those areas are business management, estimating and job costing; design and building science; contracts, liability and risk management; marketing and sales; project management and scheduling; the current Michigan residential code; and construction safety standards promulgated under the Michigan occupational safety and health act, 1974 PA 154, MCL 408.1001 to 408.1094. The same 60 hours applies to a concrete contractor seeking only the maintenance and alteration contractor license. Four of the seven subject areas are business subjects rather than trade subjects, which is worth knowing before a crew leader with twenty years on a screed assumes the course will be about concrete. Two exemptions exist. MCL 339.2404b(1)(a) exempts an individual who held a residential builder or maintenance and alteration contractor license, or held a license as a qualifying officer of a licensed builder or contractor, on June 1, 2008 and is renewing. MCL 339.2404b(1)(b) created a second exemption for applicants who applied within the 18-month period beginning on September 16, 2014 and who had held such a license within the preceding nine years. That window has closed, and the statute says the subdivision does not apply to applications submitted after it.
Sourceslegislature.mi.gov
The examination
MCL 339.2404(2) requires the department to make an applicant for a license under Article 24 pass an examination establishing that the applicant has a fair knowledge of the obligations of a residential builder or residential maintenance and alteration contractor to the public and to the applicant's principal, and of the statutes relating to the applicant's licensure. MCL 339.2404(3) then lets the department issue a residential maintenance and alteration contractor's license to an individual who applies and qualifies by passing that examination. The statutory fee schedule shows how the exam is broken up. MCL 338.2239(1)(b) prices a complete builder or maintenance and alteration contractor examination at $50.00, the law and rules portion at $30.00, the practice or trades portion at $30.00, and the salesperson examination at $30.00. MCL 338.2239(1)(c) prices an examination review at $20.00. The split pricing matches a two-part structure of a law and rules portion and a practice or trades portion. Two timing rules in the administrative rules decide whether that work holds. R 338.1521(2) provides that a passing score on an examination, or on a portion of an examination if the examination is given in separate parts, is valid for one year from the date that examination or portion was passed. R 338.1521(1) provides that if an applicant fails to complete all application requirements, including information requested by the department and any required examination, within one year from the date of first making application, the application is void and the application processing fee is forfeited. Passing one half and stalling on the other therefore burns the result. MCL 339.2410 provides relief in the other direction: an applicant is not required to repeat the examination when making application for an additional license.
Sourceslegislature.mi.gov 1legislature.mi.gov 2dtmb.state.mi.us 3legislature.mi.gov 4
What the state license costs
Michigan sets Article 24 licensing fees by statute rather than by agency schedule, which makes them easy to check. MCL 338.2239(1) states the fees for a person licensed or seeking licensure as a residential builder or residential maintenance and alteration contractor, salesperson or branch office under Article 24. The application processing fee is $15.00. Examination fees are $50.00 for a complete builder or maintenance and alteration contractor examination, $30.00 for the law and rules portion, $30.00 for the practice or trades portion, and $30.00 for the salesperson examination. An examination review is $20.00. The license fee is $50.00 per year, and MCL 338.2239(1)(d) sets a license fee of $60.00 per year that applies only for the first license cycle of an initial or renewal licensee following the effective date of the amendatory act that added subsection (2). Read those per-year figures against MCL 339.2404(5), which makes the license a three-year license, so the fee is collected across a three-year cycle rather than annually. The extra money has a named destination. MCL 338.2239(2) creates the builder enforcement fund in the state treasury, with the department as administrator for auditing purposes. A one-time-only $30.00 allocation from a license fee received under subsection (1)(d) during a single three-year license cycle is deposited into that fund, once per licensee. Five dollars of the $50.00 license fee is also deposited into the fund, and that $5.00 allocation stops when the fund balance exceeds $3,000,000.00 and resumes when it falls below $750,000.00. The fund may be used only to enforce Article 24 against unlicensed activity under MCL 339.601 and to reimburse the attorney general and prosecuting attorneys for prosecuting unlicensed practice.
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Company licenses and the qualifying officer
An individual license does not license the business. MCL 339.2405(1) provides that if a corporation, partnership, association, limited liability company or other entity applies for a license, the applicant must designate one of its officers, partners or members, or its managing agent, as a qualifying officer. A qualifying officer who takes and passes the examination and meets all other requirements of the article is entitled to a license to act for the entity, and the statute adds that a qualifying officer must also obtain and maintain a license under the article as an individual. That is two licenses for one person: the personal one, and the one naming the company. The qualifying officer is responsible for exercising the supervision or control of the building or construction operations necessary to secure full compliance with the article and its rules, so the title carries real exposure when a pour goes wrong. The department may not issue an entity license unless each partner, trustee, director, officer or member, and each person exercising control over the entity, is at least 18 years of age and meets the license requirements other than those relating to knowledge and experience. Where an individual licensee is also a qualifying officer, the department includes the individual's name and license number on the license issued to that individual as a qualifying officer. The administrative rules close the loop on departures. R 338.1526(4) requires a qualifying officer to notify the department in writing within 10 days of ceasing to be the qualifying officer and to return the wall license and pocket card of the company. R 338.1526(5) requires the remaining officer, owner, member or partner to submit a written request for time to obtain a new qualifying officer if the company intends to keep operating.
Sourceslegislature.mi.gov 1dtmb.state.mi.us 2
Bonds, insurance and financial standing
Article 24 does not set a flat surety bond or general liability minimum that every concrete contractor must post to hold the license, and no bond figure appears in the fee statute. The administrative rules nevertheless assume a bond can be a condition of a particular license. Part 2 of the rules is titled Licenses and Bonds, and R 338.1526(1) provides that if a bond is cancelled, a license predicated upon that bond is suspended effective on the date of cancellation if the licensee has not replaced the surety or cash bond. Financial condition is policed directly rather than through a bond. MCL 339.2411(2)(l) makes becoming insolvent, filing a bankruptcy action, becoming subject to a receivership, assigning for the benefit of creditors, failing to satisfy judgments or liens, or failing to pay an obligation as it becomes due in the ordinary course of business conduct subject to the penalties in article 6. R 338.1535 lets the department demand proof: on written notice, a licensee must submit a sworn financial statement showing current financial status within 30 days, and the notice may be based on an unsatisfied judgment, a lien filed against the licensee, or the department's reasonable belief that the licensee lacks the financial resources to meet contractual obligations. MCL 339.2404c sets a separate path for an individual who was a qualifying officer on December 21, 2007 and was later denied a license because of financial instability. Workers' disability compensation is the coverage with a hard trigger. MCL 418.115 applies the act to all private nonagricultural employers who regularly employ three or more employees at one time, and to those employing fewer than three if at least one has been regularly employed by that same employer for 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks.
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Renewal and continuing competency
MCL 339.2404(5) requires the department to issue a residential builder or residential maintenance and alteration contractor license for a period of three years. Renewal is not a pure payment. MCL 339.2404(6) requires an applicant for renewal to state to the department that the applicant has a current copy of the Michigan residential code and meets the continuing competency requirements described in the article or in rules promulgated under it. MCL 339.2404(7) requires a licensee to maintain documentation of the activities that meet those continuing competency requirements for at least five years, so the records outlive the cycle they belong to. The hours are in MCL 339.2404b(2). An individual licensee who obtained an initial license as a residential builder or residential maintenance and alteration contractor on or after January 1, 2009 must complete at least 21 hours of activities demonstrating continuing competence in each three-year license cycle. Within that total, the statute requires at least 3 hours of continuing competency activities in each calendar year during the first six calendar years of licensure, and at least 3 hours of activities designed to develop the licensee's understanding and ability to apply state building codes and laws relating to the licensed occupation, safety, and changes in construction and business management laws. A licensee who was exempt from the prelicensure courses under MCL 339.2404b(1)(b) has a prescribed first-year mix: the hours completed in the first year of the first three-year cycle must include at least one hour of codes, one hour of safety and one hour of legal issues. A concrete contractor who lets the hours slide until month 34 of a 36-month cycle is already outside the yearly minimum, not merely behind on the total.
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Advertising, license display and what you may call yourself
This is the rule most concrete contractors in Michigan break without noticing. R 338.1532(1) provides that a licensee must include the name, license number, and actual business address, as shown on the license, in all advertising, and that the use of a telephone number or post office box number alone is prohibited. "All advertising" is not limited by medium, so the website, the truck lettering, the yard sign and the paid ad are covered on the same terms, and the address has to be the real business address printed on the license. The one stated accommodation is for new home sales made by a licensed builder through a licensed real estate broker, where advertisements may indicate the broker's name or both the builder and broker names. R 338.1532(2) separately prohibits soliciting a home improvement contract by promising a bonus of merchandise or cash contingent on the customer displaying the dwelling to a third person or on the licensee obtaining orders from third parties, which rules out the show-your-new-driveway referral bonus pitch. Two statutes push the license number further. MCL 339.2404a requires a licensee to provide, as part of the contract, information relating to the licensee's individual license and to any license issued to that person as a qualifying officer of another entity. MCL 125.1510(2) requires that the written instrument filed with the enforcing agency to designate someone as another person's builder set forth the license number and the expiration date of the license. The penalty is real. MCL 339.604 subjects a licensee who violates a rule of conduct of an occupation, or who practices false advertising, to the penalties in MCL 339.602, which include limitation, suspension, denial or revocation of the license, censure, probation, restitution, and an administrative fine of not more than $10,000.00.
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Contracts, change orders and records
Michigan regulates the paperwork around a concrete job, not just the pour. R 338.1533(1) requires that all agreements and changes to agreements between a builder or contractor and the customer be in writing and signed by the parties, and that copies of all agreements and changes be in writing and provided to the customer. A verbal add-on for an extra ten yards and a wider apron does not satisfy that rule. R 338.1533(2) requires the contractor to make certain the written agreements clearly state the terms of the transaction, including specifications, and, where construction is involved, both plans and specifications, including cost, the type and amount of work to be done, and the type and quality of materials to be used. For concrete that reads as a direction to spell out thickness, mix, reinforcement, base, jointing and finish rather than to write "new driveway" and a price. R 338.1534 requires a builder or contractor to keep and maintain a complete, accurate set of books and records. MCL 339.2411(2)(h) makes failure to deliver to the purchaser the entire agreement of the parties, including any finance or other charge arising out of or incidental to the agreement, conduct subject to penalty, and it names laying of concrete on residential property among the covered work. MCL 339.2411(2)(f) makes failure to furnish a lender the purchaser's signed completion certificate in a maintenance and alteration contract subject to penalty. MCL 339.2411(2)(m) makes workmanship that does not meet the standards of the Michigan residential code subject to penalty. Timing cuts both ways. MCL 339.2411(1) requires a complaint to be made within 18 months after completion, occupancy or purchase for a maintenance and alteration contract. MCL 339.2412(2) makes a complainant's failure to use a contractually provided alternative dispute resolution procedure an affirmative defense.
Sourcesdtmb.state.mi.us 1legislature.mi.gov 2legislature.mi.gov 3
The penalty for unlicensed concrete work
Michigan treats unlicensed residential building and maintenance and alteration work more harshly than most unlicensed occupations. MCL 339.601(1) prohibits a person from engaging in or attempting to engage in the practice of an occupation regulated under the Occupational Code, or using a title designated in it, without a license or registration issued by the department. MCL 339.601(3) provides that a person whose license is suspended, revoked or lapsed, as determined by department records, is considered unlicensed. The general penalty in MCL 339.601(4) is a misdemeanor with a fine of not more than $500.00 or imprisonment for not more than 90 days, but MCL 339.601(6) replaces it for Article 24. A person not licensed as a residential builder or residential maintenance and alteration contractor who violates subsection (1) is guilty, on a first offense, of a misdemeanor punishable by a fine of not less than $5,000.00 or more than $25,000.00, or imprisonment for not more than one year, or both. A second or subsequent offense carries the same fine range and imprisonment for not more than two years. An offense that causes death or serious injury is a felony punishable by the same fine range and imprisonment for not more than four years. The civil consequences land on the money. MCL 339.2412(1) bars a person from bringing or maintaining an action in a Michigan court to collect compensation for work requiring an Article 24 license without alleging and proving licensure during performance. MCL 339.2412(3) bars imposing a lien on real property on the same condition. MCL 339.2412(4) lets a prosecuting attorney or the attorney general bring a civil action, and the court must assess a civil fine of not less than $5,000.00 and not more than $25,000.00 aside from civil damages or restitution.
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How a customer verifies a Michigan concrete contractor
The state runs a public license search, and a concrete contractor should expect homeowners and builders to use it. The Bureau of Construction Codes publishes licensee records through the Accela Citizen Access portal, where the search page invites a visitor to enter information to search for a licensee in the agency's database and accepts a name, a business name, a license type, a license number, or a city and state. That means a customer can start from nothing but the company name on a yard sign and arrive at the license record, including which crafts the license carries. A concrete contractor whose license shows masonry work but not concrete, or whose record has lapsed, is discoverable in under a minute. Discipline is public too. MCL 339.2411a requires final orders of the board to be posted on a website. Two more identification rules sit alongside the lookup. R 338.1525(3) requires the department to issue a licensed salesperson an identification card containing the name and business address of the salesperson, requires the salesperson to carry that card, and requires it to be shown as identification to every prospective customer, and R 338.1525(3) also bars a salesperson from commencing work until the employing builder or contractor has received the salesperson's license and identification card. MCL 339.2405(1) puts the individual's name and license number on any license issued to that individual as a qualifying officer, which lets a customer connect a person to a company. MCL 339.2404(4) requires a residential builder or maintenance and alteration contractor to maintain a place of business in Michigan, and requires a branch office license for each additional place of business maintained in the state.
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The city and county permit layer
The license is statewide, but every concrete job answers to a local enforcing agency. MCL 125.1508b makes the director of the department responsible for administering and enforcing the single state construction code act and the code, and allows a governmental subdivision to assume that responsibility inside its political boundary by ordinance, with a county ordinance adopted by the county board of commissioners, signed by its chairperson and certified by the county clerk. Subdivisions may also agree to enforce jointly. MCL 125.1508b(3) requires an enforcing agency to be an official or agent of a governmental subdivision registered under article 10 of the skilled trades regulation act and qualified by experience or training for construction code administration. In practice that means the city or township building department issues the permit for a driveway replacement, a footing or a basement floor. MCL 125.1510(1) requires an application in writing to the appropriate enforcing agency before construction, on a form prescribed by the commission, accompanied by payment of the fee established by the enforcing agency, with a verified detailed statement of specifications, full copies of scaled plans and a site plan. Permit fees are therefore local, not statewide. MCL 125.1510(3) requires a permit applicant licensed or required to be licensed as a residential builder or maintenance and alteration contractor to provide, on the residential building permit application, the occupational license number and its expiration date, plus either the name of each workers' disability compensation carrier or the reasons for exemption from coverage. MCL 125.1511 governs examination, approval and issuance of the permit and allows suspension, revocation or cancellation. MCL 125.1523(3) lets a governmental subdivision designate a code violation a municipal civil infraction by ordinance.
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