Michigan Residential Builder Exam — All Questions
9 questions
Which agency licenses residential builders and maintenance & alteration contractors in Michigan?
- a.The Michigan Department of Treasury
- b.The Department of Licensing and Regulatory Affairs (LARA), Bureau of Construction Codes✓
- c.Each city's building department, with no state board
- d.The Michigan Department of Transportation
Residential builders and M&A contractors are licensed by LARA's Bureau of Construction Codes, under the Residential Builders and Maintenance & Alteration Contractors Board, per Article 24 of the Occupational Code (MCL 339.2401 et seq.).MCL 339.2401 et seq. (Occupational Code, Article 24)
In Michigan, a residential builder license is required once the combined contract price for labor and materials on a residential structure exceeds what amount?
- a.$2,500
- b.$10,000
- c.$600✓
- d.$50,000
Under MCL 339.2403, a license is required to act as a residential builder or M&A contractor when the combined contract price for labor and materials exceeds $600. Because the trigger is so low, virtually all paid residential construction work in Michigan requires a license.MCL 339.2403
How many hours of board-approved prelicensure education must a first-time Michigan residential builder applicant complete before taking the licensing exam?
- a.60 hours✓
- b.8 hours
- c.16 hours
- d.No prelicensure education is required
Michigan requires 60 hours of board-approved prelicensure education, covering business, law, estimating, contracts, and construction standards, before an applicant may sit the licensing examination.Michigan prelicensure education requirement
Which best describes the Michigan Residential Builder Part 1 (Business and Law) examination?
- a.An open-book exam of 110 questions
- b.An oral interview before the board
- c.An open-book exam using the NASCLA guide
- d.A closed-book, multiple-choice exam of 50 questions in 75 minutes, requiring 36 of 50 (72%) to pass✓
Part 1 (Business and Law) is a closed-book, multiple-choice exam of 50 questions in 75 minutes, and a candidate must answer 36 of 50 correctly (72%) to pass. It is administered by PSI.Michigan Residential Builder examination structure (PSI)
The Michigan Residential Builder license examination consists of how many parts, and are they open or closed book?
- a.One open-book part
- b.Two closed-book parts (Business and Law, plus Trade)✓
- c.Three open-book parts
- d.A single closed-book part combining business and trade
The Michigan exam has two parts, both closed book: Part 1 Business and Law (50 questions) and Part 2 Trade (110 questions). Michigan does not offer an open-book format and does not accept the NASCLA exam.Michigan Residential Builder examination structure (PSI)
A candidate holds a passing NASCLA Accredited Commercial General Building Contractor result and wants a Michigan Residential Builder license. What is the effect in Michigan?
- a.NASCLA replaces both Michigan exam parts
- b.NASCLA replaces the Michigan trade part only
- c.NASCLA is not accepted in Michigan; the candidate must pass both Michigan exam parts✓
- d.NASCLA grants an automatic Michigan license
Michigan does not accept the NASCLA exam for the Residential Builder license. The candidate must pass both closed-book Michigan parts — Business and Law and Trade — regardless of any NASCLA credential.NASCLA acceptance (Michigan)
Once issued, a Michigan residential builder license is generally valid for what term before renewal?
- a.Three years✓
- b.Six months
- c.Ten years
- d.It never expires
A Michigan residential builder license is issued on a three-year cycle and must be renewed, with continuing-competency requirements, to remain active.Michigan license term / renewal cycle
How does a Michigan Maintenance & Alteration (M&A) Contractor license differ from a full Residential Builder license?
- a.The M&A license authorizes building high-rise commercial towers
- b.The M&A license is a statewide license and the Residential Builder license is county-limited
- c.There is no difference; the two terms are interchangeable
- d.The M&A license is limited to the specific trade classifications listed on it, while the Residential Builder license covers building or improving residential structures generally✓
A Residential Builder license covers building and improving residential structures broadly, while a Maintenance & Alteration Contractor license is limited to the specific trades or classifications (for example, carpentry, roofing, or siding) endorsed on it.MCL 339.2401 (Residential Builder vs. M&A Contractor)
A person plans to build several houses for other people for profit in Michigan. Which statement is correct?
- a.No license is needed because houses are residential
- b.A residential builder license is required because the person is building residential structures for others as a business✓
- c.Only a city permit is required, never a state license
- d.A license is required only if any single home exceeds $500,000
Building residential structures for others as a business is exactly what the Residential Builder license regulates. Because the work is for others and exceeds the $600 threshold, a state license is required (MCL 339.2403).MCL 339.2403 (license required for others' work)