Michigan Residential Builder Exam — All Questions

To renew a Michigan residential builder license, a licensee must generally complete what during each three-year cycle?

• a.A new 60-hour prelicensure course each year
• b.The required continuing-competency hours✓
• c.A retake of the full licensing examination
• d.Nothing; the license renews automatically

To renew, a licensee must meet the continuing-competency requirements for each three-year license cycle (MCL 339.2404 and 339.2404b). This keeps licensees current on code and law without repeating the full 60-hour prelicensure course.MCL 339.2404; MCL 339.2404b (continuing competency)

A Michigan builder regularly employs a crew of four employees. What coverage does Michigan law require?

• a.Workers' compensation coverage under the Worker's Disability Compensation Act✓
• b.Flood insurance on every jobsite where an employee is assigned to work
• c.Only professional liability insurance for design errors and omissions
• d.No insurance of any kind unless a homeowner asks for proof of coverage

The Worker's Disability Compensation Act covers a private employer that regularly employs three or more employees at one time. It also covers an employer with fewer than three if at least one of them has worked 35 or more hours a week for 13 or more weeks during the preceding 52 weeks (MCL 418.115). A crew of four meets the first test.Worker's Disability Compensation Act, MCL 418.115

Which set of topics is covered by the Business and Law section of the Michigan Residential Builder exam?

• a.Site engineering, excavation and sitework, footings and foundation walls, concrete, carpentry, masonry, roofing, insulation, ventilation, and windows, doors and skylights
• b.Real estate brokerage, property appraisal, mortgage lending, title examination, escrow accounts, listing agreements, and closing procedures for residential home purchases
• c.Regulatory and statutory rules, insurance/bonds/liens, contracts, project management and administration, accounting and finance, business organization, personnel, and estimating✓
• d.Electrical wiring, plumbing systems, mechanical equipment, boiler installation, elevator inspection, and the other work regulated under the skilled trades laws

PSI's outline for the 50 Business and Law questions lists eight areas: regulatory and statutory requirements (13 questions), insurance, bonds and liens (11), contracts (7), project management and administration (6), accounting and finance (6), types of business organization (4), personnel (2), and estimating (1). This is the business side of running a residential building company.PSI Residential Builder, M&A Contractor, and Salesperson Handbook (Business and Law content outline)

Because the Michigan Residential Builder exam is closed book, how should a candidate prepare for Michigan-specific rules like the $600 threshold and the lien deadlines?

• a.Plan to look them up in a reference book during the examination
• b.Memorize them, since no reference material is allowed in the exam room✓
• c.Rely on handwritten notes brought into the exam room on test day
• d.Ignore them, since Michigan-specific rules are not tested at all

The Michigan exam is closed book, so no reference material is allowed in the room. Candidates must commit Michigan-specific facts — the $600 license threshold, the no-suit rule for unlicensed builders, and the 90-day/one-year lien deadlines — to memory.PSI Residential Builder, M&A Contractor, and Salesperson Handbook (closed-book examination)

What passing raw score does PSI publish for the 160-question Michigan Residential Builder combination exam?

• a.116✓
• b.104
• c.120
• d.128

The passing raw score is 116 for the whole 160-question exam, which has 50 Business and Law questions and 110 Practice/Trade questions. PSI publishes one score for the combination exam, not a separate one for each section.PSI Residential Builder, M&A Contractor, and Salesperson Handbook (examination specifications)