MICHIGAN BUILDERS LICENSE EXAM
COMPREHENSIVE PRACTICE • 2026/2027 EDITION
200 Business & Law and Practice/Trade Questions with Answers & Rationales
Section Content Area Questions
1 Licensing Requirements & Board Structure 25
2 Business Management & Financial Practices 25
3 Contracts, Liability & Risk Management 25
4 Michigan Residential Code & Building Science 30
5 Construction Trades 30
6 Safety Standards (MIOSHA) 20
7 Project Management & Scheduling 20
8 Enforcement, Complaints & Penalties 25
TOTAL 200
Governing body: Michigan LARA, Bureau of Professional Licensing • Exam vendor: PSI Services LLC • Structure:
Business & Law + Practice/Trade. Cognitive mix: ~30% recall • ~50% application • ~20% analysis. Includes
Michigan-specific penalty, prelicensure, and code-dimension items plus multi-part scenario clusters.
Study disclaimer. These are original AI-authored practice questions built from the provided blueprint and standard
IRC/MIOSHA construction knowledge — not actual LARA/PSI exam items. Licensing fees, penalties, board
composition, deadlines, and code dimensions change; verify every legal/regulatory detail against current official
Michigan LARA, PSI, and adopted-code sources before relying on it.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 1
, Section 1: Licensing Requirements & Board Structure — Eligibility, Prelicensure,
Application, Board (25 questions)
Q1. How many hours of approved prelicensure education must an applicant complete before taking the
Michigan residential builder examination?
A. 30 hours
B. 45 hours
C. 60 hours
D. 90 hours
Correct Answer: C
Rationale: Michigan requires 60 hours of approved prelicensure education, with at least 6 hours in each of 7
required subject areas. The other totals do not meet the requirement.
Q2. Which state agency regulates residential builder licensing in Michigan?
A. Department of Treasury
B. Department of Licensing and Regulatory Affairs (LARA)
C. Environmental Protection Agency
D. Department of Transportation
Correct Answer: B
Rationale: LARA, through its Bureau of Professional Licensing, regulates residential builder licensing in
Michigan. The other agencies do not oversee builder licenses.
Q3. Which company administers the Michigan builders license examination?
A. Pearson VUE
B. PSI Services LLC
C. Prometric
D. ASE
Correct Answer: B
Rationale: PSI Services LLC administers the Michigan builders license examination. The other testing vendors do
not administer this exam.
Q4. The Michigan residential builders exam consists of which two parts?
A. Business and Law, and Practice/Trade
B. Theory and apprenticeship
C. Federal and state
D. Written and oral
Correct Answer: A
Rationale: The exam has two parts: Business and Law, and Practice/Trade. The other pairings do not describe
the exam structure.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 2
, Q5. What is the minimum age to obtain a Michigan residential builder license?
A. 25 years
B. 18 years
C. 16 years
D. 21 years
Correct Answer: B
Rationale: An applicant must be at least 18 years old. The other ages do not meet the eligibility requirement.
Q6. For how many years is a Michigan residential builder license valid before renewal?
A. 3 years
B. 2 years
C. 1 year
D. 5 years
Correct Answer: A
Rationale: The Michigan builder license is issued for a 3-year cycle. The other durations are incorrect.
Q7. How many hours of continuing competency are required within each 3-year license cycle?
A. 30 hours
B. 21 hours
C. 10 hours
D. 15 hours
Correct Answer: B
Rationale: Licensees must complete 21 hours of continuing competency within each 3-year cycle. The other
totals are incorrect.
Q8. The Michigan residential builders board is composed of nine members. Which composition is correct?
A. 4 residential builders, 2 M&A; contractors, 3 public members
B. 5 residential builders, 2 M&A; contractors, 2 public members
C. 6 residential builders, 1 M&A; contractor, 2 public members
D. 3 residential builders, 3 M&A; contractors, 3 public members
Correct Answer: A
Rationale: The 9-member board consists of 4 residential builders, 2 maintenance & alteration (M&A;) contractors,
and 3 members of the general public. The other distributions are incorrect.
Q9. After obtaining a residential builder license, which trades are NOT covered by that license?
A. Drywall, painting, and flooring
B. Carpentry, concrete, and roofing
C. Masonry, insulation, and framing
D. Plumbing, electrical, and HVAC (mechanical)
Correct Answer: D
Rationale: A residential builder license does not cover plumbing, electrical, or HVAC/mechanical work, which
require separate licenses. The other trades fall within the builder's scope.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 3
, Q10. Of the 60 required prelicensure hours, how many must be completed in each of the 7 required
subject areas?
A. At least 3 hours
B. At least 12 hours
C. At least 10 hours
D. At least 6 hours
Correct Answer: D
Rationale: At least 6 hours must be completed in each of the 7 subject areas, with the remaining 18 hours from
other approved topics. The other minimums are incorrect.
Q11. An individual (personal) residential builder license may be used for which of the following?
A. A corporation
B. Only the individual named on the license
C. A partnership
D. A limited liability company (LLC)
Correct Answer: B
Rationale: An individual license applies only to the person named; a corporation, LLC, or partnership must obtain
its own license through a qualifying officer. The other entities cannot operate under an individual license.
Q12. A candidate taking the builders exam for the first time must do which of the following regarding the
two exam parts?
A. Take the parts in any order over five years
B. Pass both parts during one session as an initial candidate
C. Take only the Business and Law part first, then wait a year
D. Skip the trade portion if experienced
Correct Answer: B
Rationale: Initial candidates must pass both parts of the exam during one session. The other options misstate the
requirement.
Q13. Which of the following is an eligibility requirement for a Michigan builder license in addition to the
education and age requirements?
A. Good moral character and financial responsibility
B. Ownership of a construction company
C. A four-year engineering degree
D. Ten years of union membership
Correct Answer: A
Rationale: Applicants must demonstrate good moral character and financial responsibility. A degree, company
ownership, or union membership is not required.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 4
COMPREHENSIVE PRACTICE • 2026/2027 EDITION
200 Business & Law and Practice/Trade Questions with Answers & Rationales
Section Content Area Questions
1 Licensing Requirements & Board Structure 25
2 Business Management & Financial Practices 25
3 Contracts, Liability & Risk Management 25
4 Michigan Residential Code & Building Science 30
5 Construction Trades 30
6 Safety Standards (MIOSHA) 20
7 Project Management & Scheduling 20
8 Enforcement, Complaints & Penalties 25
TOTAL 200
Governing body: Michigan LARA, Bureau of Professional Licensing • Exam vendor: PSI Services LLC • Structure:
Business & Law + Practice/Trade. Cognitive mix: ~30% recall • ~50% application • ~20% analysis. Includes
Michigan-specific penalty, prelicensure, and code-dimension items plus multi-part scenario clusters.
Study disclaimer. These are original AI-authored practice questions built from the provided blueprint and standard
IRC/MIOSHA construction knowledge — not actual LARA/PSI exam items. Licensing fees, penalties, board
composition, deadlines, and code dimensions change; verify every legal/regulatory detail against current official
Michigan LARA, PSI, and adopted-code sources before relying on it.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 1
, Section 1: Licensing Requirements & Board Structure — Eligibility, Prelicensure,
Application, Board (25 questions)
Q1. How many hours of approved prelicensure education must an applicant complete before taking the
Michigan residential builder examination?
A. 30 hours
B. 45 hours
C. 60 hours
D. 90 hours
Correct Answer: C
Rationale: Michigan requires 60 hours of approved prelicensure education, with at least 6 hours in each of 7
required subject areas. The other totals do not meet the requirement.
Q2. Which state agency regulates residential builder licensing in Michigan?
A. Department of Treasury
B. Department of Licensing and Regulatory Affairs (LARA)
C. Environmental Protection Agency
D. Department of Transportation
Correct Answer: B
Rationale: LARA, through its Bureau of Professional Licensing, regulates residential builder licensing in
Michigan. The other agencies do not oversee builder licenses.
Q3. Which company administers the Michigan builders license examination?
A. Pearson VUE
B. PSI Services LLC
C. Prometric
D. ASE
Correct Answer: B
Rationale: PSI Services LLC administers the Michigan builders license examination. The other testing vendors do
not administer this exam.
Q4. The Michigan residential builders exam consists of which two parts?
A. Business and Law, and Practice/Trade
B. Theory and apprenticeship
C. Federal and state
D. Written and oral
Correct Answer: A
Rationale: The exam has two parts: Business and Law, and Practice/Trade. The other pairings do not describe
the exam structure.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 2
, Q5. What is the minimum age to obtain a Michigan residential builder license?
A. 25 years
B. 18 years
C. 16 years
D. 21 years
Correct Answer: B
Rationale: An applicant must be at least 18 years old. The other ages do not meet the eligibility requirement.
Q6. For how many years is a Michigan residential builder license valid before renewal?
A. 3 years
B. 2 years
C. 1 year
D. 5 years
Correct Answer: A
Rationale: The Michigan builder license is issued for a 3-year cycle. The other durations are incorrect.
Q7. How many hours of continuing competency are required within each 3-year license cycle?
A. 30 hours
B. 21 hours
C. 10 hours
D. 15 hours
Correct Answer: B
Rationale: Licensees must complete 21 hours of continuing competency within each 3-year cycle. The other
totals are incorrect.
Q8. The Michigan residential builders board is composed of nine members. Which composition is correct?
A. 4 residential builders, 2 M&A; contractors, 3 public members
B. 5 residential builders, 2 M&A; contractors, 2 public members
C. 6 residential builders, 1 M&A; contractor, 2 public members
D. 3 residential builders, 3 M&A; contractors, 3 public members
Correct Answer: A
Rationale: The 9-member board consists of 4 residential builders, 2 maintenance & alteration (M&A;) contractors,
and 3 members of the general public. The other distributions are incorrect.
Q9. After obtaining a residential builder license, which trades are NOT covered by that license?
A. Drywall, painting, and flooring
B. Carpentry, concrete, and roofing
C. Masonry, insulation, and framing
D. Plumbing, electrical, and HVAC (mechanical)
Correct Answer: D
Rationale: A residential builder license does not cover plumbing, electrical, or HVAC/mechanical work, which
require separate licenses. The other trades fall within the builder's scope.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 3
, Q10. Of the 60 required prelicensure hours, how many must be completed in each of the 7 required
subject areas?
A. At least 3 hours
B. At least 12 hours
C. At least 10 hours
D. At least 6 hours
Correct Answer: D
Rationale: At least 6 hours must be completed in each of the 7 subject areas, with the remaining 18 hours from
other approved topics. The other minimums are incorrect.
Q11. An individual (personal) residential builder license may be used for which of the following?
A. A corporation
B. Only the individual named on the license
C. A partnership
D. A limited liability company (LLC)
Correct Answer: B
Rationale: An individual license applies only to the person named; a corporation, LLC, or partnership must obtain
its own license through a qualifying officer. The other entities cannot operate under an individual license.
Q12. A candidate taking the builders exam for the first time must do which of the following regarding the
two exam parts?
A. Take the parts in any order over five years
B. Pass both parts during one session as an initial candidate
C. Take only the Business and Law part first, then wait a year
D. Skip the trade portion if experienced
Correct Answer: B
Rationale: Initial candidates must pass both parts of the exam during one session. The other options misstate the
requirement.
Q13. Which of the following is an eligibility requirement for a Michigan builder license in addition to the
education and age requirements?
A. Good moral character and financial responsibility
B. Ownership of a construction company
C. A four-year engineering degree
D. Ten years of union membership
Correct Answer: A
Rationale: Applicants must demonstrate good moral character and financial responsibility. A degree, company
ownership, or union membership is not required.
Michigan Builders License Exam — Comprehensive Practice (2026/2027) Page 4
