Contractor Licensing Law and Business Practices
Licensing requirement
Michigan requires a state fire sprinkler contractor license for firms that install, alter, or repair fire sprinkler systems. The license is issued through the Bureau of Fire Services, and the contractor must have a qualifying person who has demonstrated code knowledge. The license number belongs on bids, contracts, and permit applications. Working without the license exposes the firm to enforcement, stop-work orders, and contract collection problems.
Business practices the exam tests
- Written contracts with scope, code edition, exclusions, schedule, and payment terms.
- Change orders in writing before extra work; verbal changes are hard to prove.
- Michigan Construction Lien Act notices and deadlines; preserve lien rights.
- Certificates of insurance: general liability, workers' compensation, auto.
- Permit and inspection responsibility stated clearly in the contract.
- Records: calculations, approved plans, test results, and inspection reports.
Worked example
A property manager asks for a verbal addition of six sprinklers in a tenant space. The contractor should not rely on the phone call. Issue a written change order identifying the added heads, the hydraulic impact, the permit amendment, the price, and the schedule effect. If the added heads push the system beyond the approved calculation, the designer must revise the calculation and obtain plan review before installation. The change order also triggers updated lien notices if the contract amount changes.
Traps
Assuming the qualifying person must be on every jobsite; using another firm's license; omitting license numbers from proposals; and starting work before the contract or permit is signed. Keep business records as carefully as hydraulic records: the exam treats both as contractor responsibility.