A contractor must obtain a LARA registration number for projects exceeding what dollar amount?
Correct Answer
B) $3,500
Michigan requires contractor registration with LARA for residential projects exceeding $3,500, including labor and materials.
Why This Is the Correct Answer
Michigan law requires residential builders and maintenance/alteration contractors to register with LARA for residential projects where the total cost (labor and materials) exceeds $3,500. This threshold is a foundational requirement under the Michigan Residential Code and LARA's oversight framework.
Why the Other Options Are Wrong
Option A: $7,500
$7,500 is incorrect. This is not the statutory threshold for LARA registration. It may be confused with bond amounts or other financial thresholds in contractor regulations.
Option C: $5,000
$5,000 is incorrect. While it may seem like a round number threshold, the actual LARA registration requirement is triggered at $3,500.
Option D: $10,000
$10,000 is incorrect. This figure is commonly associated with other licensing thresholds or permit requirements in various states, but Michigan's LARA registration threshold is $3,500.
Memory Technique
Remember '3,500 = Register with the State.' Think of it as: once a project costs more than a used car down payment ($3,500), you need to be officially registered. Any residential project above this triggers LARA registration.
More Michigan Questions
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