Water Heater Replacement — Michigan license requirements
01 The project
The starting point is the work itself — Water Heater Replacement in Michigan. The job determines which trades are involved, and the trades determine which license classifications may be required.
No project components are seeded for this project — we do not invent component lists without evidence.
02 Jurisdiction
This project is evaluated for Michigan — the no-GC-licence state. There is no statewide general-contractor licence: the individual Residential Builder and Maintenance & Alteration Contractor licences (Article 24, MCL 339.2401 et seq.) cover the residential structure — a detached 1- or 2-family dwelling or a townhouse of not more than 3 stories — and the skilled trades run on their own articles of the Skilled Trades Regulation Act (electrical Art. 7, mechanical Art. 8, plumbing Art. 11). The statute's only dollar figure is the $600 anti-splitting exemption, and permits come from the local building department. Michigan jurisdiction page.
Local building and permit fees were not read — LOCAL_AUTHORITY_REQUIRED — and the RB/M&A PSI examination fee plus the initial master-plumber and plumbing-contractor licence amounts are unpublished (NOT_VERIFIED). Michigan imposes no surety bond and no state general-liability minimum on these credentials (verified absences), but the WDCA workers' compensation rule bites at 3+ employees (or 1+ at 35+ hours/week for 13+ weeks). Inside the City of Detroit the electrical credential is issued locally. State requirements are not the complete story for any city or township.
03 Trade → license
Relations below are recorded per state — only this jurisdiction's classifications are shown.
Trades involved: no seeded components — trade resolution follows from the classification relations below.
- Component basis MECHANICAL-CONTRACTOR — Mechanical Contractor License reported S-MI-MECH-APP rule MI-MECHANICAL-CONTRACTORWhere the replacement changes fuel type, venting or combustion air, the mechanical (gas-fired appliance) side engages the Mechanical Contractor licence; the official pages read this phase state the licence categories and fees but do not map appliance-by-appliance (worded as reported, not confirmed).
- Alternative path MA-CONTRACTOR — Residential Maintenance & Alteration (M&A) Contractor confirmed S-MI-MCL-2403 rule MI-600-EXEMPTIONALTERNATIVE — under $600 aggregate for the whole undertaking, no licence is needed (MCL 339.2403(f)); above it the M&A licence (or RB) is required for the residential structure work. Splitting the job into sub-$600 contracts to evade the act voids the exemption.
- May require PLUMBING-CONTRACTOR — Plumbing Contractor License confirmed S-MI-MCL-6111 rule MI-PLUMBING-CONTRACTORA water heater swap is plumbing installation/maintenance on a residential structure — Plumbing Contractor licence with master representation; a journey plumber working under the contractor's licence is covered by MCL 339.2403(e)/(h). The labor-only 'wages for personal labor only' carve-out (MCL 339.2401(e)) never rescues a hired firm, which supplies both labor and material.
04 Scope
What the official sources say about the work involved — typed assertions, never a boolean "covers". Interpretations are marked as such.
- Officially included MECHANICAL-CONTRACTOR Mechanical Installation Maintenance And Repair As A Business (may_perform) Skilled Trades Reg. Act Art. 8, MCL 339.5801–5819 S-MI-MECH-APP MCL 339.2403(i) exempts this licensee from Article 24 for mechanical work only.
- Officially included MA-CONTRACTOR Repair Alteration Addition Improvement Wrecking Or Demolition Of A Residential Structure Plus Garage Building And Residential Concrete (may_perform) MCL 339.2404(3); MCL 339.2401(b) S-MI-MCL-2404 The M&A licence carries the twelve statutory crafts and the garage/concrete activities; roof, siding, masonry and carpentry work on a residential structure sits here rather than under the RB licence when the contract is repair/alteration.
- Officially included PLUMBING-CONTRACTOR Plumbing Installation Maintenance And Repair As A Business Under Master Plumber Representation (may_perform) MCL 339.6111(1)-(7) S-MI-MCL-6111 MCL 339.2403(h) exempts this licensee from Article 24 for plumbing work only.
05 Requirements
| Requirement | Kind | Statement | Source |
|---|---|---|---|
| Plumbing contractor licence — hold or employ a master plumber, pass the examination, supervise jointly MCL 339.6111(1)-(7) verbatim (read 2026-10-05) | license | MCL 339.6111 verbatim: 'To qualify for a plumbing contractor license, the applicant must either hold a master plumber license or employ the holder of a master plumber license as his or her representative'; 'Only an individual who is a sole proprietor, a partner in a partnership, an officer of a corporation, or a member of a limited liability company, may apply'; the application lists the representing master's 'name, residence address, and license number'; the applicant 'pays the applicable examination fee established under section 207 and passes an examination provided for by the board and the department.' LARA adds: 'The contractor license will not be issued without master plumber representation.' | S-MI-MCL-6111Source S-MI-MCL-6111 — Michigan Legislature — Michigan Compiled Laws (legislature.mi.gov)MCL 339.6111 — Plumbing contractor license; master plumber representation; branch offices — MCL 339.6111(1)-(7) verbatim (read 2026-10-05) https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-339-6111 Retrieved 2026-10-05 · last verified 2026-10-05 Verbatim: 'To qualify for a plumbing contractor license, the applicant must either hold a master plumber license or employ the holder of a master plumber license as his or her representative'; only a sole proprietor, partner, corporate officer or LLC member may apply; the application lists the representing master plumber's name, residence address and license number; the applicant 'pays the applicable examination fee established under section 207 and passes an examination provided for by the board and the department' and pays the license fee 'described in article 4'; branch offices allowed with a licensed master plumber in charge of each; contractor and master are jointly and severally responsible for supervision; if the representing master leaves, the contractor has 30 days to designate another master plumber and notify the department in writing. |
| Mechanical contractor licence — $300 initial, PSI examination, three-year cycle by 8/31 MECHANICAL-APP form + renewals page verbatim (read 2026-10-05) | license | The official MECHANICAL-APP form verbatim: 'INITIAL Mechanical Contractor License/Classification $300.00'; 'Adding classification in first year of license cycle $300.00 / second year $200.00 / third year $100.00'; 'Pursuant to statute, the license fee must be paid at time of application. The application fee is non-refundable.' Veterans are exempt from the initial licensing fee under MCL 339.5417. LARA's renewals page: 'You must renew every three (3) years by 8/31 … It is $300.00 to renew your license. If you do not renew before your license expires, you have to pay a $100.00 late fee … If your mechanical contractor license is expired more than 3 years, you will need to re-apply and re-test.' | S-MI-MECH-APPSource S-MI-MECH-APP — Michigan Department of Licensing and Regulatory Affairs (LARA) — Bureau of Construction Codes (BCC), Licensing SectionApplication for Mechanical Contractor Examination & Licensing (LARA BCC) — MECHANICAL-APP form + renewals page verbatim (read 2026-10-05) Retrieved 2026-10-05 · last verified 2026-10-05 Official form read 2026-10-05. Fees verbatim: 'INITIAL Mechanical Contractor License/Classification $300.00'; 'Adding classification in first year of license cycle $300.00'; 'second year of license cycle $200.00'; 'third year of license cycle $100.00'; Veteran Exemption (MCL 339.5417) — fee waived. 'Pursuant to statute, the license fee must be paid at time of application. The application fee is non-refundable.' Applicants are notified by PSI to schedule the examination; the examination fee is paid to PSI. |
| Project under $600 aggregate contract price — licence not required, with the anti-splitting rule MCL 339.2403(f) verbatim (read 2026-10-05) | exemption | MCL 339.2403(f) verbatim: a person may work without an Article 24 licence if 'the person is working on 1 undertaking or project by 1 or more contracts, if the aggregate contract price for the labor, material, and any other items for the undertaking or project is less than $600.00. The exemption described in this subdivision does not apply if the work of a construction is only a part of a larger or major operation, whether undertaken by the same or a different residential builder or residential maintenance and alteration contractor, or in which a division of the operation is made in contracts of amounts less than $600.00, to evade this act.' | S-MI-MCL-2403Source S-MI-MCL-2403 — Michigan Legislature — Michigan Compiled Laws (legislature.mi.gov)MCL 339.2403 — Acting as a residential builder or M&A contractor without a license (the exemptions, incl. the $600 anti-splitting rule) — MCL 339.2403(f) verbatim (read 2026-10-05) https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-339-2403 Retrieved 2026-10-05 · last verified 2026-10-05 Verbatim exemptions (a)-(i): authorized representatives of government; an owner of property as to a structure for the owner's own use and occupancy; an owner of rental property as to maintenance and alteration of that rental property; an officer of a court within scope; a person (other than a salesperson) working solely under contract with a licensed RB or M&A contractor; 'a person that is working on 1 undertaking or project by 1 or more contracts, if the aggregate contract price for the labor, material, and any other items for the undertaking or project is less than $600.00' — void where the work is part of a larger or major operation or the operation is divided into sub-$600 contracts 'to evade this act'; licensed electrical contractors (Art. 7) for electrical work only; licensed plumbing contractors (Art. 11) for plumbing work only; licensed mechanical contractors (Art. 8) for mechanical work only. Amended 2016 PA 412, effective 2017-04-04. |
| Building permits are local, under the Michigan Residential Code Consumer guide + Michigan Residential Code Notification (read 2026-10-05) | permit | Michigan publishes no statewide building-permit process on the pages read: the Michigan Residential Code Notification (2018-01-30) records that 'Pursuant to MCL 125.1504(6) the department has determined to not update the Michigan residential code,' and LARA's co-branded consumer guide instructs consumers to confirm 'local regulations, permit requirements' and states 'The contractor should handle permits.' Permits are therefore issued and enforced by the local building department for the municipality where the project sits, and any permit-fee answer is LOCAL_AUTHORITY_REQUIRED. | S-MI-CONSUMER-GUIDESource S-MI-CONSUMER-GUIDE — Michigan Department of Licensing and Regulatory Affairs (LARA) — Bureau of Construction Codes (BCC), Licensing SectionMichigan Co-Branded Consumer Guide to Home Improvement Projects (LARA) — Consumer guide + Michigan Residential Code Notification (read 2026-10-05) Retrieved 2026-10-05 · last verified 2026-10-05 Official consumer guide linked from the Licensing Section page, read 2026-10-05: 'Verify contractor licenses or registrations with state licensing agencies'; 'The contractor should handle permits'; 'Confirm the contractor's insurance coverage'; 'Consider performance bonds for large projects' (consumer choice, defined as 'a financial guarantee that protects project' performance — NOT a licensing condition); glossary defines License, Bond and Permit; warns about unlicensed/unsolicited contractors and contractors with 'no insurance or contracts.' No dollar threshold appears anywhere in the guide. |
| Verify the licence number before work starts — LARA's own consumer instruction LARA news release 2025-07-17 verbatim (read 2026-10-05) | advertising | LARA news release 2025-07-17 verbatim: BCC Director Andrew Brisbo says 'If a contractor can't provide their license number or a copy of their license, that's a red flag … Consumers should always verify credentials before the work begins.' The verification route is LARA's 'Find / Verify a Licensed Professional or Business' page, which routes to Accela's public 'Search for a Licensee' lookup; the release also notes an official Michigan contractor licence shows the contractor's name, licence number and expiration date. | S-MI-LARA-NEWS-2025Source S-MI-LARA-NEWS-2025 — Michigan Department of Licensing and Regulatory Affairs (LARA) — Bureau of Construction Codes (BCC), Licensing SectionLARA news release (2025-07-17) — Tips for hiring contractors: verify the license number — LARA news release 2025-07-17 verbatim (read 2026-10-05) Retrieved 2026-10-05 · last verified 2026-10-05 · published 2025-07-17 Verbatim: LARA 'is urging residents to protect their investments by only hiring licensed, qualified contractors'; BCC 'oversees the licensing of professionals who build, repair, or renovate residential structures'; BCC Director Andrew Brisbo: 'If a contractor can't provide their license number or a copy of their license, that's a red flag … Consumers should always verify credentials before the work begins'; LARA 'discourages paying for the entirety of the job in advance' and suggests scheduling payments as the job progresses; verify at www.michigan.gov/lara or LARA-BCC-Licensing@Michigan.gov. Includes an example of an official Michigan contractor license (name, license number, expiration date). |
06 Rule: MI-MECHANICAL-CONTRACTOR
Mechanical Contractor licence (Skilled Trades Reg. Act Art. 8): 'INITIAL Mechanical Contractor License/Classification $300.00'; adding a classification $300/$200/$100 by cycle year; PSI examination with the exam fee paid to PSI; renewal every three years by 8/31 at $300 (+$100 late); re-apply and re-test beyond 3 years expired (LARA). MCL 339.2403(i) exempts the licensee from Article 24 for mechanical work only.
| Outcome | Conclusion | Caveats |
|---|---|---|
| mechanical-business | mechanical_contractor_license_required |
|
| expired-over-3-years | reapply_and_retest |
|
Rule confidence: confirmed. Missing inputs produce NOT_DETERMINED — never a forced answer. Sources: S-MI-MECH-APPS-MI-LARA-RENEWALS
07 Rule: MI-600-EXEMPTION
MCL 339.2403(f) verbatim: no licence needed when 'the person is working on 1 undertaking or project by 1 or more contracts, if the aggregate contract price for the labor, material, and any other items for the undertaking or project is less than $600.00' — and the exemption 'does not apply if the work of a construction is only a part of a larger or major operation … or in which a division of the operation is made in contracts of amounts less than $600.00, to evade this act.'
| Outcome | Conclusion | Caveats |
|---|---|---|
| under-600 | license_not_required |
|
| at-or-over-600 | license_required_analysis_needed |
|
Rule confidence: confirmed. Missing inputs produce NOT_DETERMINED — never a forced answer. Sources: S-MI-MCL-2403
08 Rule: MI-PLUMBING-CONTRACTOR
MCL 339.6111 verbatim: 'To qualify for a plumbing contractor license, the applicant must either hold a master plumber license or employ the holder of a master plumber license as his or her representative' — only a sole proprietor, partner, corporate officer or LLC member may apply, the application names the representing master, the examination is passed and the licence fee paid; LARA: 'The contractor license will not be issued without master plumber representation.' Renewal: three years by 4/30 at $300 (+$100 late).
| Outcome | Conclusion | Caveats |
|---|---|---|
| plumbing-business | plumbing_contractor_license_required |
|
| master-leaves | redesignate_master_within_30_days |
|
Rule confidence: confirmed. Missing inputs produce NOT_DETERMINED — never a forced answer. Sources: S-MI-MCL-6111S-MI-LARA-RENEWALS
09 Rule: MI-LOCAL-PERMIT
Michigan publishes no statewide permit process: permits are issued by the local building department under the Michigan Residential Code (LARA's 2018 notification records the MCL 125.1504(6) decision), and LARA's consumer guide says 'The contractor should handle permits' while telling consumers to confirm 'local regulations, permit requirements'. Permit fee answers are LOCAL_AUTHORITY_REQUIRED.
| Outcome | Conclusion | Caveats |
|---|---|---|
| local-permit | local_permit_required |
|
Rule confidence: confirmed. Missing inputs produce NOT_DETERMINED — never a forced answer. Sources: S-MI-CONSUMER-GUIDES-MI-MRC
10 Rule: MI-VERIFY-LICENSE
LARA news release 2025-07-17 verbatim: BCC Director Brisbo — 'If a contractor can't provide their license number or a copy of their license, that's a red flag … Consumers should always verify credentials before the work begins.' The verification route is LARA's find/verify page into Accela's 'Search for a Licensee'; an official licence shows name, licence number and expiration date.
| Outcome | Conclusion | Caveats |
|---|---|---|
| verify-first | verification_required_before_hiring |
|
Rule confidence: confirmed. Missing inputs produce NOT_DETERMINED — never a forced answer. Sources: S-MI-LARA-NEWS-2025S-MI-LARA-VERIFY
11 The replacement decision
| Question | Michigan answer | Source |
|---|---|---|
| Is it plumbing work? | yes — plumbing installation/maintenance needs the Plumbing Contractor licence with master representation | S-MI-MCL-6111 |
| Fuel type / venting / combustion air changes? | the Mechanical Contractor licence engages (reported, not confirmed) | S-MI-MECH-APP |
| Can the 'wages' carve-out help? | no — 'wages for personal labor only' never rescues a hired firm that supplies labor AND material | S-MI-MCL-2403 |
| Tiny job under $600? | exempt under MCL 339.2403(f) — aggregated across all contracts for the undertaking | S-MI-MCL-2403 |
| The permit | local building department; fee schedules not read | S-MI-CONSUMER-GUIDE |
| Before hiring | verify the licence number on LARA's lookup — 'that's a red flag' without it | S-MI-LARA-NEWS-2025 |
Note: the $600 anti-splitting exemption (Project under $600 aggregate contract price — licence not required, with the anti-splitting rule)and the local permit layer (Building permits are local, under the Michigan Residential Code) are stated in full on the Michigan jurisdiction page.