Michigan Residential Builder Exam, PSI, Practice Test, Exam Prep, 2026,
Questions and Answers, Rationales, Residential Builder License
1. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Prelicensure elective hours: The remaining portion of the 60-hour requirement can be fulfilled with
approved subject-matter electives.
A. 18 hoursB. 24 hours
C. 12 hours
D. 6 hours
✓ Correct Answer: A
Rationale: The listed seven core areas total 42 hours, leaving 18 elective hours.
2. During planning for a residential project, which choice correctly applies this principle?Insurance
purpose: General liability insurance is designed to protect against covered third-party claims,
subject to policy terms and exclusions.
A. Covered third-party claims
B. Increase project cost without changing the work
C. Eliminate the need for all inspections
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: A
Rationale: Insurance coverage depends on the actual policy.
3. A contractor is preparing for the Michigan Residential Builder examination. Which answer is
correct?Wall bracing: Wall bracing resists lateral loads and helps maintain the structural geometry
of framed walls.
A. Resist lateral loads
B. Increase project cost without changing the work
C. Eliminate the need for all inspections
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: A
Rationale: Wind and seismic forces can create lateral demands.
4. Which option most accurately identifies the purpose or requirement described below?
Capillary break: A capillary break limits movement of liquid water through porous materials.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Limit capillary water movement
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: C
Rationale: Capillary moisture can migrate through concrete and masonry.
5. Which statement BEST describes the following concept in a residential construction context?
PSI Residential Builder time limit: The listed time limit for the Residential Builder examination is 240
minutes.
A. 240 minutesB. 120 minutes C. 180 minutes
D. 300 minutes
, ✓ Correct Answer: A
Rationale: PSI's current examination specification lists a 240-minute limit.
6. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Site drainage: Finished grading should direct surface water away from the foundation where site
conditions permit.
A. Replace the need to follow manufacturer instructions
B. Direct water away from foundation
C. Increase project cost without changing the work
D. Eliminate the need for all inspections
✓ Correct Answer: B
Rationale: Positive drainage reduces moisture problems.
7. During planning for a residential project, which choice correctly applies this principle?Workers'
compensation: Workers' compensation is designed to address covered employee work-related
injuries and illnesses under applicable law.
A. Eliminate the need for all inspections
B. Replace the need to follow manufacturer instructions
C. Increase project cost without changing the work
D. Covered employee work injuries/illnesses
✓ Correct Answer: D
Rationale: It is distinct from general liability coverage.
8. A contractor is preparing for the Michigan Residential Builder examination. Which answer is
correct?Scaffold safety: Scaffolds must be erected, used, and inspected according to applicable
safety requirements and manufacturer/design instructions.
A. Increase project cost without changing the work
B. Replace the need to follow manufacturer instructions
C. Follow applicable scaffold requirements
D. Eliminate the need for all inspections
✓ Correct Answer: C
Rationale: Scaffold stability and access are critical safety concerns.
9. Which option most accurately identifies the purpose or requirement described below?Ethics: A
contractor should represent qualifications, prices, and scope honestly.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Replace the need to follow manufacturer instructions
D. Be truthful about qualifications and work
✓ Correct Answer: D
Rationale: Ethical conduct protects clients and the business.
10. Which statement BEST describes the following concept in a residential construction context?
Current residential code: LARA's Code Books page identifies the 2015 Michigan Residential Code
as the current residential code, effective February 8, 2016.
, A.
2024 Michigan Residential Code
B. 2015 Michigan Residential Code
C. 2018 Michigan Residential Code
D. 2021 Michigan Residential Code
✓ Correct Answer: B
Rationale: LARA's current code-books page states this.
11. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Overhead: Office rent, general administrative salaries, and similar business expenses are typically
treated as overhead rather than direct job costs.
A. Overhead
B. Replace the need to follow manufacturer instructions
C. Increase project cost without changing the work
D. Eliminate the need for all inspections
✓ Correct Answer: A
Rationale: Overhead supports the business generally rather than one specific job.
12. During planning for a residential project, which choice correctly applies this principle?Roof
drainage: Roof drainage systems move water away from the roof and building.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Move water away from the building
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: C
Rationale: Proper drainage protects roof and wall assemblies.
13. A contractor is preparing for the Michigan Residential Builder examination. Which answer
iscorrect?
Unit price: A unit price expresses cost per measurable unit, such as dollars per square foot.
A. Cost per unit
B. Replace the need to follow manufacturer instructions
C. Eliminate the need for all inspections
D. Increase project cost without changing the work
✓ Correct Answer: A
Rationale: Unit pricing supports quantity-based estimating.
14. Which option most accurately identifies the purpose or requirement described below?
Foundation drainage: Foundation drainage helps reduce hydrostatic pressure and moisture intrusion
around below-grade walls.
A. Increase project cost without changing the work
B. Replace the need to follow manufacturer instructions
C. Eliminate the need for all inspections
D. Control water around the foundation
✓ Correct Answer: D
Rationale: Drainage is part of a complete water-management strategy.
A.
Questions and Answers, Rationales, Residential Builder License
1. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Prelicensure elective hours: The remaining portion of the 60-hour requirement can be fulfilled with
approved subject-matter electives.
A. 18 hoursB. 24 hours
C. 12 hours
D. 6 hours
✓ Correct Answer: A
Rationale: The listed seven core areas total 42 hours, leaving 18 elective hours.
2. During planning for a residential project, which choice correctly applies this principle?Insurance
purpose: General liability insurance is designed to protect against covered third-party claims,
subject to policy terms and exclusions.
A. Covered third-party claims
B. Increase project cost without changing the work
C. Eliminate the need for all inspections
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: A
Rationale: Insurance coverage depends on the actual policy.
3. A contractor is preparing for the Michigan Residential Builder examination. Which answer is
correct?Wall bracing: Wall bracing resists lateral loads and helps maintain the structural geometry
of framed walls.
A. Resist lateral loads
B. Increase project cost without changing the work
C. Eliminate the need for all inspections
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: A
Rationale: Wind and seismic forces can create lateral demands.
4. Which option most accurately identifies the purpose or requirement described below?
Capillary break: A capillary break limits movement of liquid water through porous materials.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Limit capillary water movement
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: C
Rationale: Capillary moisture can migrate through concrete and masonry.
5. Which statement BEST describes the following concept in a residential construction context?
PSI Residential Builder time limit: The listed time limit for the Residential Builder examination is 240
minutes.
A. 240 minutesB. 120 minutes C. 180 minutes
D. 300 minutes
, ✓ Correct Answer: A
Rationale: PSI's current examination specification lists a 240-minute limit.
6. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Site drainage: Finished grading should direct surface water away from the foundation where site
conditions permit.
A. Replace the need to follow manufacturer instructions
B. Direct water away from foundation
C. Increase project cost without changing the work
D. Eliminate the need for all inspections
✓ Correct Answer: B
Rationale: Positive drainage reduces moisture problems.
7. During planning for a residential project, which choice correctly applies this principle?Workers'
compensation: Workers' compensation is designed to address covered employee work-related
injuries and illnesses under applicable law.
A. Eliminate the need for all inspections
B. Replace the need to follow manufacturer instructions
C. Increase project cost without changing the work
D. Covered employee work injuries/illnesses
✓ Correct Answer: D
Rationale: It is distinct from general liability coverage.
8. A contractor is preparing for the Michigan Residential Builder examination. Which answer is
correct?Scaffold safety: Scaffolds must be erected, used, and inspected according to applicable
safety requirements and manufacturer/design instructions.
A. Increase project cost without changing the work
B. Replace the need to follow manufacturer instructions
C. Follow applicable scaffold requirements
D. Eliminate the need for all inspections
✓ Correct Answer: C
Rationale: Scaffold stability and access are critical safety concerns.
9. Which option most accurately identifies the purpose or requirement described below?Ethics: A
contractor should represent qualifications, prices, and scope honestly.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Replace the need to follow manufacturer instructions
D. Be truthful about qualifications and work
✓ Correct Answer: D
Rationale: Ethical conduct protects clients and the business.
10. Which statement BEST describes the following concept in a residential construction context?
Current residential code: LARA's Code Books page identifies the 2015 Michigan Residential Code
as the current residential code, effective February 8, 2016.
, A.
2024 Michigan Residential Code
B. 2015 Michigan Residential Code
C. 2018 Michigan Residential Code
D. 2021 Michigan Residential Code
✓ Correct Answer: B
Rationale: LARA's current code-books page states this.
11. A Michigan residential builder is reviewing this issue. What is the BEST answer?
Overhead: Office rent, general administrative salaries, and similar business expenses are typically
treated as overhead rather than direct job costs.
A. Overhead
B. Replace the need to follow manufacturer instructions
C. Increase project cost without changing the work
D. Eliminate the need for all inspections
✓ Correct Answer: A
Rationale: Overhead supports the business generally rather than one specific job.
12. During planning for a residential project, which choice correctly applies this principle?Roof
drainage: Roof drainage systems move water away from the roof and building.
A. Increase project cost without changing the work
B. Eliminate the need for all inspections
C. Move water away from the building
D. Replace the need to follow manufacturer instructions
✓ Correct Answer: C
Rationale: Proper drainage protects roof and wall assemblies.
13. A contractor is preparing for the Michigan Residential Builder examination. Which answer
iscorrect?
Unit price: A unit price expresses cost per measurable unit, such as dollars per square foot.
A. Cost per unit
B. Replace the need to follow manufacturer instructions
C. Eliminate the need for all inspections
D. Increase project cost without changing the work
✓ Correct Answer: A
Rationale: Unit pricing supports quantity-based estimating.
14. Which option most accurately identifies the purpose or requirement described below?
Foundation drainage: Foundation drainage helps reduce hydrostatic pressure and moisture intrusion
around below-grade walls.
A. Increase project cost without changing the work
B. Replace the need to follow manufacturer instructions
C. Eliminate the need for all inspections
D. Control water around the foundation
✓ Correct Answer: D
Rationale: Drainage is part of a complete water-management strategy.
A.
