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Michigan Residential Builder's License
Questions and Answers 2025 Verified
What is the 1st offense penalty for engaging in the practice of residential building without a license?✔️ ✔️ Not less than $5K and not more than $25K and/or 1 year What is the penalty for engaging in the practice of residential building, resulting in a death?✔️ ✔️ Not less than $5K and not more than $50K and/or 4 years On your individual builder's license application, what should you write as your "business address"?✔️ ✔️ Your personal address What is the cost of the individual builder's license?✔️ ✔️ $ After receiving your residential builder's license, what are the only trades that are not covered by your license?✔️ ✔️ -Plumbing
- Electrical
- HVAC Who is the TESTING company for the State of Michigan?✔️ ✔️ PSI What is the name of the DEPARTMENT that regulates your license?✔️ ✔️ LARA Before you may test, what must you do?✔️ ✔️ Present 2 forms of ID How should you schedule your test with PSI?✔️ ✔️ -Online
- Mail
- Phone/Fax
When will you receive your test score?✔️ ✔️ Immediately following the completion of the test What are the 2 parts of the Residential Builder's Exam?✔️ ✔️ -Business & Law
- Practice & Trade How long will you have to complete the Practice & Trade portion of the exam?✔️ ✔️ 180 mins What is a quick asset ratio?✔️ ✔️ 1 to 1 Under the carpentry section of the test, what does a "span table" tell us?✔️ ✔️ What species andwhat grade of lumbar a floor joist has to be to span a certain distance Which topics will be covered on the Practice & Trade portion of the exam?✔️ ✔️ -Carpentry
- Roofing
- Insulation Do you need a Residential Builder's License to work on commercial projects?✔️ ✔️ No Where does the most fraud occur?✔️ ✔️ The residential market As a builder, your license falls under the regulation of what? ✔️ ✔️ -Rules by the director &board
- Laws of The State of Michigan What is the make up of the 9 members of the board?✔️ ✔️ - 6 individuals that have a license/registration in the occupation in which the board monitors
- 3 members of the general public
Why would someone be allowed to operate without a residential builder's license?✔️ ✔️ -Theyare an authorized representative of the US Government
- They are the owner of a rental property with reference to the maintenance and alteration of that rental property
- An owner of property with reference to a structure on the property for the owner's own use and occupancy Beginning the license cycle after Dec 21st, 2007, the department shall issue the license of a residential builder and residential maintenance and alteration contractor for a period of how many years duration?✔️ ✔️ 3 years After receiving your initial residential builder's license, how many hours of continuing competency are required within the next 3 years?✔️ ✔️ 21 hours How is the salesperson license changed when the salesperson desires to change employment from 1 residential builder to another?✔️ ✔️ -License will be forwarded to the department
- An application for transfer is made
- New license under the new employer will be issued Regarding workmanship, how long does a client have to file a "verified complaint"?✔️ ✔️ 18 months If a licensed residential builder or licensed residential maintenance and alteration contractor wishes to change the control or direction of the business, how long do they have to report that change to the department?✔️ ✔️ 10 days The department shall conduct a review upon the notice that the licensee has violated the asbestos abatement contractors licensing act, what is a possible consequence for this violation? ✔️ ✔️ - The department may suspend/revoke that person's license
- Fines may be issued When the board issues the findings of a verified complaint, what happens?✔️ ✔️ -Departmentwill post on its website any final order of the board and the date it was issued According to the Administrative Rules, what does and application for a license include? ✔️ ✔️ -The residence address of all individuals, partners, officers and/or members as requested by the board
- The address if the principle place of business in Michigan Upon final order of license suspension/revocation, the licensee shall surrender the license to the department within how many days of the date of suspension/revocation? ✔️ ✔️ 10 days According to the Administrative Rules, what shall a licensee include on all advertising? ✔️ ✔️ - Name on license
- License number
- Actual business address as shown on license According to the purchase & sales agreement, the builder/contractor shall make certain that the written agreement clearly states the terms of the transaction, including what?✔️ ✔️ - Specifications & cost
- Type & quality of materials
- Type & amount of work to be done After investigation, the department may request a licensee to appear at such as is necessary to determine whether there is cause for a complaint that would require a hearing or dismissal of the complaint.✔️ ✔️ Investigative Conference Who can represent a respondent in a complaint?✔️ ✔️ -Attorney
- His/Her own self
- Have well defined contracts which includes rights and responsibilities Which document lists each subcontractor, supplier & laborer for whom payment of wages or fringe benefits and withholdings are due but unpaid, with whom the contractor/subcontractor has contracted/subcontracted for performance under the contract with the owner/lessee and the amount due to the persons as of the date of the statement?✔️ ✔️ The Sworn Statement A claim lien MUST be completed within how many days of last being on the job site?✔️ ✔️ 90 days If, after filing a claim of lien, you DO get paid before the lawsuit, what form must you complete?✔️ ✔️ Discharge of Construction Lien What is the maximum amount you can collect through a judgement in small claims division of the district court using small claims form DC84?✔️ ✔️ $6, After Mr. Jones receives a sworn statement that he owes ABC Framing $40,000, how does Mr. Jones know that ABC Framing was ever on the job site?✔️ ✔️ Proof of Service of Notice of Furnishing According to the State Construction Code Act, how often will the state code be updated by the Construction Code Commission?✔️ ✔️ Every 3 years The Uniform Commercial Code states that a contract for the sale of goods for the price of $1, or more must be presented in what form? ✔️ ✔️ In writing sufficient to indicate a sale between parties and signed According to the American's with Disabilities Act (ADA), are employees allowed to required to a medical exam before making an offer?✔️ ✔️ No
Minimum Wage Law states:✔️ ✔️ -After 40 hours in any work week, compensation is 1 1/2times the regular rate
- An employer may not discriminate based on sex when paying employees for the same work requirement Who is covered by the Employing Minors Youth Employment Standards Act?✔️ ✔️ Ages 14, 15 ,16, and 17 The Family Medical Leave Act (FMLA) states:✔️ ✔️ -Employees may receive unpaid leave forcertain reasons
- Employees may receive up to 12 weeks of leave in a 12 month period
- This law pertains to employer with 50+ employees engaged in commerce or affecting commerce True or False In regard to employing minors, every 5 hours of work requires a 30 min break✔️ ✔️ True True or False A minor shall not work more than 4 days a week✔️ ✔️ FalseA minor shall not work more that 6 days a week True or False In a sole proprietorship, the owner determines how profits are used✔️ ✔️ True A disadvantage of a general partnership:✔️ ✔️ Each partner is liable for the business debts ofthe other partner What allows an individual to invest in a general partnership but have no input as to how the partnership is operated?✔️ ✔️ A Limited Partnership
What act requires prevailing wages to be paid out?✔️ ✔️ The Davis-Bacon Act What is the most common type of contract used in residential construction?✔️ ✔️ Lump sumcontract What should you be sure to include in your contracts?✔️ ✔️ -Change orders
- Weather/Ground conditions
- Buried debris True or False In regard to a cost plus/fees contract, the total construction costs are known to the owner?✔️ ✔️ False In a cost plus/fee contract, the total construction cost will be UNKNOWN to the owner True or False In regard to a cost plus/fee contract, the contractor provides a target estimate?✔️ ✔️ True True or False In regard to a cost plus/fee contract, you must have a written agreement concerning payment of contractor fees?✔️ ✔️ True What type of contract is used when the scope of work is poorly defined and/or to cover emergency repairs and renovations to occupied facilities?✔️ ✔️ Cost plus percentage of costcontract (Time & Materials) What type of contract requires the owner/architect to compile a list of total quantities as well as the contractor to provide price per unit to supply and install?✔️ ✔️ Unit Price Contract When having a contract signed, what should you verify first online or at the assessor's office?✔️ ✔️ Legal Ownership
What is it called when asking a customer for a certain percent of money after a section(s) of the job is completed?✔️ ✔️ Progress Payment What is it called, at the end of a job, you walk through with a customer and check off any needed repairs or discuss work to be redone?✔️ ✔️ Final Punch List What are 2 items suggested to avoid using in your contracts?✔️ ✔️ -Start Date
- Completion Date Kitchen cabinet layouts from the kitchen designer are an example of what?✔️ ✔️ Shop Drawings Change in conditions should be the responsibility of who?✔️ ✔️ The owner What should be included in close out documents?✔️ ✔️ -Owner/Operator manuals
- Copies of all warranties
- Check off list from mechanical contractors With a permit, when should final payment be due?✔️ ✔️ Upon final inspection In a contract, it is wise to include that care and maintenance of the owner's pet(s) is the responsibility of who?✔️ ✔️ The owner ONLY On new construction sites what are you required to have for everyone on site?✔️ ✔️ Toilet facilities What is the best practice in regard to moving personal items?✔️ ✔️ -You don't move them
- Written notice to neighbors if work will include any major vibrations that could cause items to fall
When can the builder substitute material? ✔️ ✔️ Only with the permission of the owner What is the cost of moving equipment on and off the job site called?✔️ ✔️ Mobilization costs When you decide on the type of contract to use, who should review it?✔️ ✔️ An attorney Who is responsible for collecting and maintaining safety data sheets on the job site?✔️ ✔️ Thegeneral contractor Who's responsibility are any code related penalties that are caused for the general contractor?✔️ ✔️ The subcontractor True or False The subcontractor is responsible for doing toolbox talks?✔️ ✔️ FalseThe general contractor is responsible for doing toolbox talks What are 3 methods for alternative dispute resolution?✔️ ✔️ -Mediation
- Arbitration
- Facilitation In which method of alternative dispute resolution is the award settlement binding and there is no appeal process?✔️ ✔️ Arbitration When is substantial completion of work obtained?✔️ ✔️ When the owner can take possessionand use the structure for it's intended purpose What are the possible effects that lead paint can have on children?✔️ ✔️ -Brain damage
- Behavioral problems
- Propensity to violence and aggression
How far back does the data and research show the dangers of lead paint?✔️ ✔️ Early 1900's If a house was built before you should assume the house has lead pain as a safety precaution?✔️ ✔️ 1978 To protect yourself from lead dust and debris, what should you do?✔️ ✔️ -Wear safety glasses
- Wear disposable coveralls and shoe covers
- Wear a respirator True or False When working with lead, work wet and clean✔️ ✔️ True How long does lead stay in your bloodstream?✔️ ✔️ 30 days How long does lead stay in your soft organs?✔️ ✔️ 6 - 8 months What are the 3 current techniques to identify lead paint?✔️ ✔️ -X-Ray Fluoroscopy
- Lab Analysis
- 3rd party inspections (risk assessment) What are the controls of lead based paint?✔️ ✔️ -Safely remove lead based paint
- Enclosure/Encapsulation True or False Lead dust breathed in by adults can create disorders including kidney and brain damage ✔️ ✔️ True What is a colorless, odorless, radioactive gas that is caused naturally in the soil but can seep out?✔️ ✔️ Radon
The Silica Standard for handheld power saws for cutting fiber-cement board (with blade diameter of 8" or less) for tasks performed outdoors states the saw must be equipped with what?✔️ ✔️ Commercially available dust collection system The Silica Standard for handheld power saws for cutting fiber-cement board requires the saw to be equipped with commercially available dust collection systems. How efficient is the filter on the commercially available dust collection systems?✔️ ✔️ The filter should have 99% or greater efficiency In regard to the Silica Standard what is defined as: a description of tasks, a description of the engineering controls, a description of housekeeping measures and a description of the procedures used to restrict access to work areas?✔️ ✔️ The Written Exposure Plan What is a system that provides wage replacements, medical and rehabilitation benefits to worker who were injured on the job site?✔️ ✔️ Worker's Compensation How long must an employee be without wages to receiver worker's compensation benefits?✔️ ✔️ 1 week Who cannot be covered under a worker's compensation policy?✔️ ✔️ -A sole proprietor thatoperates as an independent contractor
- A sole proprietor with no employees In regards to worker's compensation, what should you be sure that a subcontractor has before hiring them?✔️ ✔️ -A worker's compensation exclusion form
- A worker's compensation policy Before hiring a subcontractor with a worker's compensation exclusion form, what additional form should you have them fill out to reduce your liability?✔️ ✔️ -A subcontractor release and waiver of liability form
Worker's compensation related to a death shall include % of the after tax weekly wage of the employee to be paid to dependents who were wholly dependent on the employee's earnings. Such payment shall continue for weeks from the date of death.✔️ ✔️ -80%
- 500 weeks Which type of insurance protects the construction project and materials from external forces and has endorsements that can be added to include protection against fire, wind, storms, vandalism, and "Acts of God"?✔️ ✔️ All risk builder insurance What type of insurance provided added risk protection to an employer who has an employee injured or killed in a relation construction accident? This is over and above the worker's compensation insurance?✔️ ✔️ Employer's Liability Insurance Who has the obligation to ask for and receive copies of all related insurance policies from the subcontractors insurance providers?✔️ ✔️ The general contractor What are the key ideas developing a marketing plan essential for a company's growth?✔️ ✔️ - Determine your personal strengths and weaknesses and those of your business
- Provide a method of establishing trust in the company for both clients and employee
- Provide a portion of resources to promote your plan How can you promote the name of your business with the public?✔️ ✔️ -Job site signs
- Vehicle signs
- Mailers What type of bond guarantees the contractor will complete the contracted project for the estimate sum? The bond is usually 100% of the contract sum. Should the contractor default then the bonding company will provide completion of project.✔️ ✔️ Performance bond
For a wall that is 40ft long and 10ft high, how many blocks do you need for the first course only?✔️ ✔️ 30 blocks 40ft x 0.75 = 30 blocks Length of wall x 3/4 Rule (0.75) = Number of block in 1st course What is an example of pre-stressed concrete?✔️ ✔️ A double T as used in parking garages Of the 5 types of cement, which is most commonly used?✔️ ✔️ Type 1 for general use In coarse aggregate such as pea stone and gravel that ranges in size due to the required specifications, what is generally the maximum size?✔️ ✔️ 1 1/2" or less Ready mixed concrete should be totally discharged from the truck within how many hours after mixing?✔️ ✔️ 1 1/2 hours What type of footing is used over soil which has a poor load bearing capacity and will generally cover the entire footprint of the structure?✔️ ✔️ A mat footing Splices in rebar should not be less than of overlap✔️ ✔️ 12"of overlap In concrete, saw cut control joints should be made within hours of placement.✔️ ✔️ 4 - 12 hours The temperature of concrete should be maintained at °F for 5 days in cold weather.✔️ ✔️ 50°F Space trusses to within +/- ". ✔️ ✔️ 1/4"
Lateral bracing (long 2x4 12 footers) are supposed to be located where?✔️ ✔️ The upper 1/3 ofthe truss area What is the act to prescribe and regulate working conditions: to prescribe the duties of employers and employees as to places and conditions of employment?✔️ ✔️ Michigan Occupational Safety and Act Health Act 154 of 1974 True or False It is the duty of the employee to recognize hazards likely to cause death/serious harm.✔️ ✔️ False: It is the duty of the employer to recognize hazards likely to cause death/serious harm. Who shall administer and enforce provisions of the Michigan Occupational Safety and Health Act?✔️ ✔️ LARA An employer who willfully or repeatedly violates the Michigan Occupational Safety and Health Act may be assessed a civil penalty for each violation of how much?✔️ ✔️ Not more than $124,709. A copy of an accident prevention program shall be available to employees at the job site. What should be included in this program? ✔️ ✔️ -Instruction to each employee who is required to handle poisons, toxic materials, caustics, and other harmful substances.
- Instruction to each employee is known harmful plants, reptiles, animals, or insects are present.
- Inspections of the construction site, tools, material, and equipment to assure unsafe conditions which could create hazards are eliminated A supply of what should be available to employees in all places of employment?✔️ ✔️ A supplyof potable water The top guardrail must be located at the height of from the walking/working surface.✔️ ✔️ 42" +/- 3"
