MARYLAND HOME IMPROVEMENT COMMISSION · EXAM
P R E P A R AT I O N S E R I E S
Maryland MHIC
Contractor Exam Prep
Forty scenario-based and direct-recall items with
exemplar explanations spanning Maryland home
improvement law and consumer protection, contract
requirements and mechanic’s liens, business management
and insurance, and building codes and job-site safety —
aligned to the 2026–2027 MHIC licensing standards and
the PSI examination blueprint.
Contractor Licensing Readiness Program
Construction Contracting Education Unit
Aligned with Md. Code, Business Regulation Title 8 · COMAR 09.08 · Real
Property Title 9 · OSHA 29 CFR 1926 · EPA RRP (40 CFR 745)
PRACTICE QUESTIONS AND STUDY GUIDE · 2026 UPDATE · SEPTEMBER 8, 2026
, Maryland MHIC Exam Prep - Practice Questions and Study Guide | 2026 Update
Abstract
Background: The Maryland Home Improvement Commission (MHIC) licenses and regulates home improvement
contractors under Business Regulation Article, Title 8, and candidates for licensure must pass a PSI-administered
examination covering business and project management, Maryland law, and job-site responsibilities. Objective:
This study guide presents Practice Questions, a 40-item formative assessment with exemplar explanations and a
criterion-referenced grading rubric aligned to the 2026-2027 licensing cycle. Methods: Items were allocated
equally across four content domains (ten items per section): Maryland home improvement law and consumer
protection; contract requirements, liens, and dispute resolution; business management, estimating, and insurance;
and building codes and job-site safety under OSHA and EPA standards. A cognitive blueprint of approximately
30% recall, 50% application, and 20% analysis was applied, with roughly 75% of items presented as workplace
scenarios. Results: The instrument yields a 100-point score (2.5 points per item) with a 75% mastery threshold,
supported by a quick-reference answer key, item-level rationales grounded in verified statutory provisions, and
section-level diagnostics for targeted remediation. Conclusion: The guide provides Maryland contractor license
candidates and educators with a standards-anchored, reproducible self-assessment instrument that reflects
current Guaranty Fund, mechanic’s lien, contract-form, and safety requirements.
Keywords: Maryland Home Improvement Commission; contractor licensing; Guaranty Fund; mechanic’s lien;
home improvement contracts; OSHA and EPA job-site safety
Document class: Licensing examination preparation study guide | Instrument: 40 items, 100 points, mastery
threshold 75% | Edition: 2026 Update (2026-2027 standards) | Date: September 8, 2026
Page 1
, Maryland MHIC Exam Prep - Practice Questions and Study Guide | 2026 Update
Table of Contents
Examination Overview and Instructions 3
Part 1. Practice Questions 3
Section 1. Maryland Home Improvement Law, MHIC Regulations, and Consumer Protection (Q1-Q10) . . . 3
Section 2. Contract Requirements, Legal Liens, and Dispute Resolution (Q11-Q20) . . . . . . . . . . . . . . 6
Section 3. Business Management, Estimating, and Insurance Requirements (Q21-Q30) . . . . . . . . . . . . 8
Section 4. Building Codes, Construction Standards, and Safety - OSHA and EPA (Q31-Q40) . . . . . . . . 10
Part 2. Complete Solution Key and Exemplar Explanations 12
2.1 Quick-Reference Answer Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2 Item-by-Item Explanations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Part 3. Grading Rubric and Mastery Thresholds 19
3.1 Scoring Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.2 Partial-Credit Guidance (Formative Use Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.3 Mastery Thresholds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.4 Section-Level Diagnostic Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.5 Cognitive-Level Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
References 21
Page 2
P R E P A R AT I O N S E R I E S
Maryland MHIC
Contractor Exam Prep
Forty scenario-based and direct-recall items with
exemplar explanations spanning Maryland home
improvement law and consumer protection, contract
requirements and mechanic’s liens, business management
and insurance, and building codes and job-site safety —
aligned to the 2026–2027 MHIC licensing standards and
the PSI examination blueprint.
Contractor Licensing Readiness Program
Construction Contracting Education Unit
Aligned with Md. Code, Business Regulation Title 8 · COMAR 09.08 · Real
Property Title 9 · OSHA 29 CFR 1926 · EPA RRP (40 CFR 745)
PRACTICE QUESTIONS AND STUDY GUIDE · 2026 UPDATE · SEPTEMBER 8, 2026
, Maryland MHIC Exam Prep - Practice Questions and Study Guide | 2026 Update
Abstract
Background: The Maryland Home Improvement Commission (MHIC) licenses and regulates home improvement
contractors under Business Regulation Article, Title 8, and candidates for licensure must pass a PSI-administered
examination covering business and project management, Maryland law, and job-site responsibilities. Objective:
This study guide presents Practice Questions, a 40-item formative assessment with exemplar explanations and a
criterion-referenced grading rubric aligned to the 2026-2027 licensing cycle. Methods: Items were allocated
equally across four content domains (ten items per section): Maryland home improvement law and consumer
protection; contract requirements, liens, and dispute resolution; business management, estimating, and insurance;
and building codes and job-site safety under OSHA and EPA standards. A cognitive blueprint of approximately
30% recall, 50% application, and 20% analysis was applied, with roughly 75% of items presented as workplace
scenarios. Results: The instrument yields a 100-point score (2.5 points per item) with a 75% mastery threshold,
supported by a quick-reference answer key, item-level rationales grounded in verified statutory provisions, and
section-level diagnostics for targeted remediation. Conclusion: The guide provides Maryland contractor license
candidates and educators with a standards-anchored, reproducible self-assessment instrument that reflects
current Guaranty Fund, mechanic’s lien, contract-form, and safety requirements.
Keywords: Maryland Home Improvement Commission; contractor licensing; Guaranty Fund; mechanic’s lien;
home improvement contracts; OSHA and EPA job-site safety
Document class: Licensing examination preparation study guide | Instrument: 40 items, 100 points, mastery
threshold 75% | Edition: 2026 Update (2026-2027 standards) | Date: September 8, 2026
Page 1
, Maryland MHIC Exam Prep - Practice Questions and Study Guide | 2026 Update
Table of Contents
Examination Overview and Instructions 3
Part 1. Practice Questions 3
Section 1. Maryland Home Improvement Law, MHIC Regulations, and Consumer Protection (Q1-Q10) . . . 3
Section 2. Contract Requirements, Legal Liens, and Dispute Resolution (Q11-Q20) . . . . . . . . . . . . . . 6
Section 3. Business Management, Estimating, and Insurance Requirements (Q21-Q30) . . . . . . . . . . . . 8
Section 4. Building Codes, Construction Standards, and Safety - OSHA and EPA (Q31-Q40) . . . . . . . . 10
Part 2. Complete Solution Key and Exemplar Explanations 12
2.1 Quick-Reference Answer Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2 Item-by-Item Explanations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Part 3. Grading Rubric and Mastery Thresholds 19
3.1 Scoring Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.2 Partial-Credit Guidance (Formative Use Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.3 Mastery Thresholds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.4 Section-Level Diagnostic Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.5 Cognitive-Level Blueprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
References 21
Page 2
