DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
DIRECTOR'S OFFICE  
RESIDENTIAL BUILDERS AND MAINTENANCE AND ALTERATION  
CONTRACTORS  
(By authority conferred on the board by section 308 of 1980 PA 299, MCL 339.308,  
and on the director of the department of licensing and regulatory affairs by sections 205  
and 2404b of 1980 PA 299, MCL 339.205 and 339.2404b, and Executive Reorganization  
Order Nos. 1991-9, 1996-2, 2003-1, 2008-4, and 2011-4, MCL 338.3501, MCL  
445.2001, 445.2011, 445.2025, and 445.2030)  
PART 1. GENERAL  
R 338.1511 Rescinded.  
History: 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1512 Rescinded.  
History: 1979 AC; 1998-2000 AACS.  
R 338.1519 Rescission.  
Rule 19. R 451.501 to R 451.538 of the Michigan Administrative Code,  
appearing on pages 4594 to 4597 of the 1979 Michigan Administrative Code, are  
rescinded.  
History: 1990 AACS.  
PART 2. LICENSES AND BONDS  
R 338.1521 Applications for licenses  
Rule 21. (1) If an applicant fails to complete all application requirements, including  
information requested by the department, and any required examination, within 1 year  
from date of first making application to the department, then the application shall be void  
and the application processing fee shall be forfeited.  
(2) A passing score on an examination, or on a portion of an examination if the  
examination is given in separate parts, shall be valid for 1 year from the date the  
examination or portion of the examination was passed.  
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History: 1954 ACS 49, Eff. Feb. 14, 1967; 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1521a Rescinded.  
History: 2008 AACS; 2014 AACS.  
R 338.1522 Rescinded.  
History: 1979 AC; 1990 AACS.  
R 338.1523 Rescinded.  
History: 1979 AC; 1990 AACS.  
R 338.1523a Rescinded.  
History: 1979 AC; 1998-2000 AACS.  
R 338.1524 Rescinded.  
History: 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1525 Salesperson's license; identification card; discharge; termination or  
transfer of salesperson; temporary license for salesperson or salesperson license  
applicant.  
Rule 25. (1) A salesperson shall be licensed under a person holding a license as a  
builder or contractor, but shall not be licensed under more than 1 builder or contractor  
during the same period of time.  
(2) An application for a salesperson license shall be submitted by the employing  
builder or contractor. An applicant for a salesperson license who is currently licensed as  
a residential builder or maintenance and alteration contractor, or has been licensed as a  
residential builder or maintenance and alteration contractor within the past 3 years, shall  
not be required to take the salesperson examination.  
(3) Upon approval, the department shall issue a license and an identification card  
containing the name and business address of the salesperson. The card shall be carried by  
the salesperson and shall be shown as identification to every prospective customer. A  
salesperson shall not commence work until the builder or contractor under whom the  
salesperson is licensed receives the salesperson's license and identification card from the  
department.  
(4) When a salesperson licensed under this act is discharged or  
otherwise  
terminates employment with the builder or contractor under whom he or she is licensed,  
the builder or contractor shall return the salesperson's license, and the salesperson shall  
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return the identification card to the department within 5 days from the date of discharge  
or termination.  
(5) When a licensed salesperson transfers employment from the builder or contractor  
under which he or she is presently licensed to a new employer, the new employer shall  
submit to the department an application for transfer of the salesperson's license to the  
new employer.  
History: 1979 AC; 2006 AACS.  
R 338.1526 Termination of licenses.  
Rule 26. (1) If a bond is cancelled, a license predicated upon such a bond shall be  
suspended effective upon the date of cancellation, if the licensee has not replaced the  
surety or cash bond.  
(2) Upon final order of license suspension or revocation, the licensee shall  
surrender the license to the department within 10 days of the date of suspension or  
revocation. If the license of a builder or contractor is suspended or revoked, the  
licenses of salespersons issued under the license of that builder or contractor shall lapse,  
and licenses shall be surrendered at the same time. Any salesperson may have his or her  
license transferred to another licensed builder or contractor before the expiration date  
of the salesperson's license.  
(3) If the qualifying officer of a corporation, association, partnership, limited  
liability company or organization consisting of more than 1 person is a party to events  
that led to suspension or revocation, any license issued to any other organization where  
the individual is the qualifying officer shall be suspended or revoked and any license  
issued to the qualifying officer in an individual capacity shall be suspended or revoked.  
(4) A qualifying officer of a company shall notify the department in writing  
within 10 days of ceasing to be the qualifying officer, and shall return the wall license  
and pocket card of the company.  
(5) When a qualifying officer ceases to act as the qualifying officer, and the  
company intends to continue to operate, the remaining officer, owner, member or  
partner of the company shall submit a written request to the department to allow the  
company time to obtain a new qualifying officer.  
History: 1979 AC; 2006 AACS.  
PART 3. OPERATIONS OF LICENSEES  
R 338.1531 Rescinded.  
History: 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1532 Advertising.  
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Rule 32. (1) A licensee shall include the name, license number, and actual business  
address, as shown on the license, in all advertising. The use of a telephone or post office  
box number alone is prohibited. When sales of new homes are being made by a licensed  
builder, through a licensed real estate broker, advertisements may indicate the broker's  
name or both the names of the builder and broker.  
(2) A licensee shall not solicit any contract for home improvements by a promise to  
the purchaser or the prospective purchaser of a bonus, whether of merchandise or cash,  
which is contingent upon the purchaser's or prospective purchaser's using or displaying a  
dwelling to a third person or upon the licensee's obtaining an order or orders for  
merchandise or service from a third person.  
History: 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1533 Purchase and sales agreements.  
Rule 33. (1) All agreements and changes to the agreements between a builder,  
or contractor, and the customer shall be in writing and signed by the parties. Copies of  
all agreements and changes to agreements shall be in writing, and provided to the  
customer.  
(2) The builder or contractor shall make certain that the written agreements  
clearly state the terms of the transaction, including specifications, and when  
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.  
(3) If a purchase or sales agreement is for a new structure which is either  
substantially completed or in substantial conformance with a model, plans and  
specifications need not be furnished if the structure is specifically identified or  
related to the model and any changes, additions to or subtractions from the model are  
specifically agreed to and noted in writing.  
History: 1979 AC; 2006 AACS.  
R 338.1534 Books and records.  
Rule 34. A builder or contractor shall keep and maintain a complete, accurate set of  
books and records.  
History: 1979 AC; 2006 AACS; 2014 AACS.  
R 338.1535 Financial statements.  
Rule 35. Upon notice by the department, a licensee shall submit within 30 days  
sworn financial statement showing the licensee's current financial status. The notice  
for a financial statement may be based upon an unsatisfied judgment, a lien filed against  
the licensee or the department's reasonable belief that the licensee does not have the  
financial resources to meet contractual obligations. The department's notice shall be in  
writing and may be served personally on the licensee or by certified mail sent to the  
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licensee's last known business address on file with the department. A request for an  
extension of time shall be in writing and may be granted for good and sufficient cause.  
History: 1979 AC; 2006 AACS.  
R 338.1536 Brokerage.  
Rule 36. Acceptance or performance of a contract procured by a salesperson not  
licensed under a builder or contractor, or acceptance or performance of a contract, other  
than the sale of real property, procured by anyone not licensed under the act, is  
prohibited.  
History: 1979 AC; 2006 AACS.  
PART 5. COMPLAINTS AND HEARINGS  
R 338.1551 Complaints; filing.  
Rule 51. (1) A complaint must be submitted in a form specified by the department.  
(2) Upon receipt of a valid and written complaint, the department shall assign a  
complaint number, acknowledge the complaint, and forward a copy of the complaint to  
the licensee. The licensee shall reply to the department within 15 days from receipt of the  
complaint and shall confirm or deny the justification for the complaint. If a complaint or  
a portion of the complaint is not acknowledged by the licensee as being justified, then the  
department shall notify the complainant of the area of disagreement.  
(3) If the complaint or the information submitted by the complaining party is  
incomplete or disputed by the licensee, the department may require the complaining party  
to furnish additional information. The report must indicate what steps, if any, have been  
taken by the complaining party, including involvement by any other governmental  
agency, or any other pertinent information regarding the subject matter of the complaint.  
Before the department takes any further action, it may obtain a report from local building  
officials or proper local authorities, and if the department cannot obtain a report from the  
local building official or proper local authorities, then a person authorized by the  
department may make an inspection to determine if the complaint is justified.  
(4) Failure or refusal by the licensee to correct a structural matter that is materially  
deficient, dangerous, or hazardous to the owners is presumed to be dishonest or unfair  
dealing.  
(5) All construction, renovations, alterations, or repairs must comply with the  
Michigan construction code.  
History: 1979 AC; 2006 AACS; 2019 AACS.  
R 338.1552 Investigative conferences.  
Rule 52. The department, after investigation, may request a licensee to appear at  
such investigative conference as is necessary to determine whether there is cause  
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for complaint which would require a hearing on, or dismissal of, the complaint. Notice  
of a request for a conference shall be in writing and mailed to the address appearing on  
the license not less than 10 days before the conference and shall set the time and  
place of the conference. The notice shall be recorded in the file at the time of  
mailing. Persons interested shall have the right to appear and be represented by  
counsel. Failure by an individual licensee or qualifying officer of a licensee to appear  
for the conference may be a basis for suspension, revocation or denial of a license.  
The department may grant an adjournment if requested by any party to the complaint if  
the request is made at least 5 days prior to the date assigned for the conference.  
History: 1979 AC.  
R 338.1553 Disposition of complaints; resolution or settlement.  
Rule 53. (1) A complaint may be resolved or settled prior to a conference  
and the complaint may be closed by the department. If a complaint is resolved or  
settled by agreement, the licensee shall notify the department in writing thereof. The  
department shall then notify the complainant that it has received information that the  
complaint has been resolved or settled. If the complainant takes issue with the  
licensee's contention the department may investigate  
further.  
Resolution  
or  
settlement of a complaint shall not be construed as a waiver by the department of  
its statutory right to take disciplinary action.  
(2) The department may dismiss a complaint on its own motion if it determines  
that the complaint has been resolved, settled, is without merit, or that there is  
insufficient evidence of a violation of the act.  
(3) If the department, after investigation of a complaint, has reason to believe that  
a licensee is in violation of the statute or the rules, it may recommend to the director  
that a hearing be held to show cause why the license should not be suspended or  
revoked.  
History: 1979 AC.  
R 338.1554 Rescinded.  
History: 1979 AC; 1990 AACS.  
R 338.1555 Rescinded.  
History: 2002 AACS; 2019 AACS.  
PART 6. EDUCATION  
R 338.1560 Instructor qualifications.  
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Rule 60. (1) An instructor of prelicensure courses shall possess either of the  
following qualifications:  
(a) Be qualified under the requirements of section 2404b(4) of the Occupational  
Code, MCL 339.2404b(4).  
(b) Be qualified by experience, education, or both, to supervise and instruct a  
prelicensure course required under MCL 339.2404b, including at least 1 of the following:  
(i) Properly licensed, certified, or approved instructor at a high school,  
intermediate school district, community college, university, the bureau of construction  
codes, the Michigan occupational safety and health administration, other government  
agency, or a proprietary school licensed by the department.  
(ii) Currently licensed as a residential builder or maintenance and alteration  
contractor with at least 3 years of experience in the subject matter being taught.  
(iii) Possess equivalent qualifications or relevant expertise in the subject matter  
being taught.  
(2) An individual seeking approval as a prelicensure course instructor shall submit  
to the department an application on a form provided by the department. In order for the  
applicant to be approved as a prelicensure course instructor, the application must be  
approved by the department.  
History: 2008 AACS; 2011 AACS; 2019 AACS.  
R 338.1562 Prelicensure; school, institution, sponsor, or instructor  
responsibilities.  
Rule 62. (1) The school, institution, sponsor, or instructor, as determined appropriate  
by the department, shall do all of the following:  
(a) Submit to the department the qualifications of each instructor to be used in an  
approved prelicensure course not fewer than 60 days before the instructor is scheduled  
to begin instruction. The department may waive this deadline at its discretion.  
(b) Issue a certificate of completion to an applicant who successfully completes  
an approved residential builder or residential maintenance and alteration course. The  
certificate shall include all of the following information:  
(i) Sponsor name.  
(ii) Name of the participant.  
(iii) Date course was completed.  
(iv) Course name, course approval number, and number of hours approved for each  
area of competency listed in MCL 339.2404b(1) when applicable.  
(v) Signature of course instructor.  
(c) Retain all course attendance records for a period of 5 years.  
(2) Instructors shall be responsible for all of the following:  
(a) Compliance with all laws and rules relating to prelicensure and continuing  
competency courses under the act.  
(b) Providing students with current and accurate information.  
(c) Maintaining an environment conducive to learning.  
(d) Assuring and certifying attendance of students enrolled in courses.  
(e) Providing assistance to students and responding to questions relating  
to course materials.  
Page 7  
History: 2008 AACS; 2011 AACS.  
R 338.1564. Continuing competency; activities; courses; alternate activities;  
proof of compliance.  
Rule 64. (1) Activities demonstrating continuing competency as required under  
section 2404b of the Occupational Code, MCL 339.2404b, such as courses and alternate  
activities, may include any of the following:  
Activity and Proof Required  
Number of Hours Earned  
for Activity  
a.  
Completing any construction code  
One continuing competency  
update course approved by the bureau hour may be earned for each  
of construction codes and any fire safety qualifying hour of attendance  
or workplace safety course approved or satisfactorily documented by the  
sponsored by the department, and any sponsor or organization.  
continuing competency course or  
activity, regardless of the format in  
which it is offered, if it is approved or  
offered for continuing competency  
credit by either of the following:  
∙ Another state board of residential  
builders or alteration and maintenance  
contractors, other than this state.  
Any national, regional or local  
home builder association or home  
builder professional organization.  
If audited, a licensee shall submit a  
copy of a letter or a certificate of  
completion issued by the course or  
activity sponsor or organization  
showing the licensee’s name, number of  
hours attended, sponsor name, or the  
name of the organization that approved  
the continuing competency course or  
activity, and the date or dates on which  
the course was held or the activity  
completed.  
b.  
Successful completion of a college  
or university course.  
A minimum of 15 continuing  
competency hours may be earned  
for each semester credit hour earned  
If audited, a licensee shall submit a and a minimum of 12 continuing  
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copy of the transcript issued by the competency hours earned for each  
college or university showing the quarter credit hour earned.  
number of completed credit hours for  
the academic course.  
c.  
d.  
e.  
Successful  
comprehensive  
completion  
examination  
of  
a
Five continuing competency  
being hours may be earned for proof of a  
administered by the department or by a passing score on the examination.  
third party under contract with the  
department to offer prelicensure  
examinations.  
If audited, a licensee shall submit  
proof of a passing score on the  
examination.  
Participation in a school-sponsored  
mentoring program.  
Two continuing competency  
hours may be earned for each  
qualifying hour of attendance  
If audited, a licensee shall submit a satisfactorily documented by the  
copy of a letter or a certificate of sponsor or organization.  
completion issued by the school  
showing the licensee’s name, name of  
the school, the date or dates on which  
the mentoring program was held and  
attended by the licensee.  
Presenting or attending a seminar,  
One continuing competency  
in-house course, workshop, or technical hour may be earned for each  
presentation made at a meeting, qualifying hour of attendance  
convention, or conference by a trade satisfactorily documented by the  
association, research institute, risk sponsor or organization.  
management  
entity,  
manufacturer,  
supplier, governmental agency,  
consulting agency, or other entity.  
If audited, a licensee shall submit a  
copy of a letter or a certificate of  
completion issued by the sponsor  
or organizer of the seminar, in-  
house course, workshop, or technical  
presentation made at  
a
meeting,  
convention or conference showing the  
licensee’s name, sponsor name, or the  
name of the organization, and the date  
or dates on which the activity was held  
and attended by the licensee.  
f.  
Successfully completing a distance  
One continuing competency  
learning course, consistent with the hour may be earned for each  
Page 9  
requirements of R 338.1566.  
qualifying hour of attendance  
satisfactorily documented by the  
If audited, a licensee shall submit a sponsor or organization.  
copy of a letter or a certificate of  
completion issued by the sponsor or  
organization of the distance learning  
course, showing the licensee’s name,  
number of hours attended, sponsor  
name or the name of the organization  
that approved the distance learning  
course, and the date or dates on which  
the course was held, or the course was  
completed by the licensee.  
g.  
Teaching, instructing, or presenting  
One continuing competency  
a department approved prelicensure hour may be earned for each  
course or other course approved under qualifying hour of attendance  
this rule, which is not a part of the satisfactorily documented by the  
licensee’s regular job description.  
sponsor or organization.  
If audited, a licensee shall submit a  
letter issued by the course or activity  
sponsor or organization confirming a  
licensee as the teacher, instructor, or  
presenter of a course, together with a  
copy of the course syllabus, or other  
program documentation, showing that  
licensee is the instructor, the name of  
the course, and the date or dates the  
course took place.  
h.  
Publication of an article in a trade  
Five continuing competency  
journal or a regional magazine as an hours may be earned for publishing  
expert in the field.  
an article as an expert in the field.  
If audited, a licensee shall submit a  
copy of the publication that identifies  
the licensee as the author of the  
publication  
and  
the  
publication  
acceptance letter showing licensee’s  
name, article name, and date of  
publication.  
i.  
Active  
participation  
in  
an  
One continuing competency  
occupational or technical society, state hour may be earned for each  
advisory, or review committee.  
qualifying hour of satisfactorily  
documented attendance.  
If audited, a licensee shall submit  
documentation, satisfactory to the  
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department, verifying the licensee’s  
active participation at the meeting.  
Serving as a member or attending a  
j.  
One continuing competency  
and hour may be earned for each  
maintenance and alteration contractors qualifying hour of satisfactorily  
board meeting. documented attendance at a state  
state  
residential  
builders  
residential  
If audited, a licensee shall submit maintenance  
builders  
and  
and  
alteration  
documentation, satisfactory to the contractors board meeting.  
department, verifying the licensee’s  
attendance at the board meeting.  
k.  
Serving as a member or attending a  
One continuing competency  
state construction code commission hour may be earned for each  
meeting.  
qualifying hour of satisfactorily  
documented attendance at a state  
If audited, a licensee shall submit construction code commission  
documentation, satisfactory to the meeting.  
department, verifying the licensee’s  
attendance at the commission meeting.  
l.  
Participating in  
a
company-  
One continuing competency  
sponsored seminar or training that is hour may be earned for each  
designed to enhance professional qualifying hour of attendance  
development in the licensee’s area of satisfactorily documented by the  
professional practice.  
sponsor or organization.  
If audited, a licensee shall submit a  
copy of a letter or a certificate of  
completion issued by the company or  
organization presenting the seminar or  
training on its behalf, showing the  
licensee’s name, company name or the  
name of the organization presenting the  
seminar or training on behalf of the  
company, subject of the seminar or  
training, and the date or dates on which  
the above-referenced seminar or  
training was held and completed by the  
licensee.  
m.  
Participating in research conducted  
One continuing competency  
in conjunction with a college or hour may be earned for each  
university, trade association, or qualifying hour of attendance  
manufacturer.  
certified by the sponsor or  
organization.  
If audited, a licensee shall submit  
documentation, satisfactory to the  
department, verifying the licensee’s  
Page 11  
participation in research conducted in  
conjunction with a college or university,  
trade association, or manufacturer.  
n.  
Participating in a code hearing  
One continuing competency  
conducted by the International Code hour may be earned for each  
Council or bureau of construction qualifying hour of attendance at the  
codes.  
code hearing.  
If audited, a licensee shall submit  
documentation, satisfactory to the  
department, verifying the licensee’s  
participation in the code hearing.  
(2) The subject matter of courses and alternate activities chosen by a licensee must  
meet the minimum requirements of section 2404b(2) of the Occupational Code, MCL  
339.2404b(2), and must be relevant to the licensed occupation, and may include any of  
the following:  
(a) Prelicensure courses in the areas of competency listed in section 2404b(1)(c) of  
the Occupational Code, MCL 339.2404b(1)(c).  
(b) The residential maintenance and alteration contractor crafts and trades listed in  
section 2404(3) of the Occupational Code, MCL 339.2404(3).  
(c) Accounting and safekeeping for monies received from a customer, including  
requirements of section 1 of 1931 PA 259, MCL 570.151, regarding building contract  
fund.  
(d) Accounting, finance, and taxes.  
(e) Personnel management.  
(f) Communication and customer service.  
(g) Environmental or land use analysis.  
(h) Life safety.  
(i) Green or sustainable building practices; the practice of creating structures and  
using processes that are environmentally responsible and resource-efficient throughout  
a building's life-cycle from siting to design, which may include construction, operation,  
maintenance, renovation and deconstruction.  
(j) Zoning and governance policies and procedures.  
(k) Mold, lead, asbestos, or other hazardous material mitigation.  
(3) Under section 2404(6) of the Occupational Code, MCL 339.2404(6), the licensee  
shall maintain documentation that is sufficient to verify participation in a course or  
activity, and time spent in meeting the continuing competency requirements under the  
act.  
(4) Unless otherwise specified in the rules, the department shall give continuing  
competency credit based on the length of a qualifying program, with 50 minutes of  
continuous instruction constituting 1 qualifying hour. One-half-credit of continuing  
competency will be granted for every additional 25 minutes of instruction, after the first  
hour of credit is earned.  
As used in this subrule, "continuous instruction" means  
education time, not including breakfast, lunch, or dinner periods, coffee breaks, or any  
other breaks in the program.  
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History: 2011 AACS; 2019 AACS.  
R 338.1565 Waiver of continuing competency.  
Rule 65. A request for waiver of continuing competency pursuant to section 204(2)  
of 1980 PA 299, MCL 339.204(2), must be received by the department prior to the  
expiration date of the license cycle.  
History: 2019 AACS.  
R 338.1566 Distance learning; prelicensure; continuing competency.  
Rule 66. (1) A distance learning course shall contain all of the following:  
(a) A course where instructor and student may be apart and instruction takes place  
through on-line or electronic media.  
(b) A course which includes, but is not limited to, instruction presented through an  
interactive classroom, job site, computer conferencing, or an interactive computer  
system and which fulfills the requirements in section 2404b of the act.  
(c) Individual modules of interactive instruction which provide access to an  
instructor, offered through on-line or electronic media.  
(d) A list of at least 1 learning objective for each module of instruction. The learning  
objective or objectives shall ensure the entire content of the course is understood.  
(e) A structured learning method that enables the student to attain each learning  
objective.  
(f) A method of assessment of the student's performance during each module of  
instruction.  
(g) A remediation of any student who is deficient in the assessment to repeat the  
module until the student understands the course content material.  
(h) An acceptable method of ensuring that the student achieves the approved hours  
in the course.  
(i) An acceptable method of remedying hardware and software failures.  
(j) Documentation demonstrating successful completion of a course.  
(2) A prelicensure course may be earned through distance learning.  
(3) A continuing competency course or an alternate activity may be earned through  
distance learning.  
History: 2011 AACS.  
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