MICHIGAN BUILDERS LICENSE EXAM — PRACTICE
QUESTIONS & DETAILED ANSWERS and detailed
rationales, Builder/Contractor licensing exam, including
licensing law, business and law topics, and construction–
trade fundamentals.
1. What is the penalty for the first offense of practicing as a residential builder
without a license?
A. $500 fine only
B. Not less than $5,000 and not more than $25,000 and/or one year in prison ✔️
C. $1,000 fine and 6 months in jail
D. License revoked permanently
Correct Answer: B
💭 Rationale: In Michigan, engaging in residential building without proper
licensure is a serious statutory violation. The penalty for a first offense is set
between $5,000 and $25,000 and/or up to one year of incarceration. (Scribd)
2. Which of the following trades is not covered under a Michigan residential
builder’s license?
A. HVAC ✔️
B. Carpentry
C. Roofing
D. Concrete work
Correct Answer: A
💭 Rationale: After licensure, a Michigan residential builder may perform all
trades except plumbing, electrical, and HVAC unless separately licensed.
HVAC work typically requires its own certification. (Scribd)
3. Who administers the Michigan Builders License Exam?
A. LARA
B. PSI ✔️
C. ABC
D. OSHA
,Correct Answer: B
💭 Rationale: PSI (Professional Service Industries, Inc.) is the contracted
testing provider that administers the Michigan Builders License exam on behalf
of the state. (Scribd)
4. What does a “span table” tell you on the carpentry section of the exam?
A. How to install a roof
B. What species and grade of lumber a floor joist must be to span a distance ✔️
C. Electrical load capacity
D. Permit requirements
Correct Answer: B
💭 Rationale: Span tables are used in framing to determine allowable joist
sizes and spacing depending on species, grade, and load requirements. (Quizlet)
5. A newly constructed building cannot be occupied without which of the
following?
A. Certificate of Occupancy ✔️
B. Final payment to subcontractors
C. Signed contract
D. Building permit only
Correct Answer: A
💭 Rationale: A Certificate of Occupancy is the formal approval that a building
has met all code requirements and is safe for occupancy — a fundamental code
provision. (Scribd)
6. Under the EPA Lead Renovation, Repair, and Painting rule (RRP), how
many days before renovating a home built before 1978 must the lead
pamphlet be mailed?
A. 7 days ✔️
B. 10 days
C. 30 days
D. 60 days
Correct Answer: A
💭 Rationale: Federal lead safety rules require pre-renovation disclosure and
,documentation at least 7 days before beginning work on homes built before
1978.
7. How often is the Michigan Construction Code updated?
A. Every 1 year
B. Every 2 years
C. Every 3 years ✔️
D. Every 5 years
Correct Answer: C
💭 Rationale: The state construction code is typically revised every three years
to reflect current building practices and safety standards.
8. A contractor convicted with intent to defraud faces which of the following
penalties?
A. $100 fine only
B. $100 or less
C. Not less than $100 nor more than $5,000 and/or imprisonment 6 months to 3 years
✔️
D. Suspension only
Correct Answer: C
💭 Rationale: Frauds involving building contracts are penalized seriously with
fines and possible prison sentences under Michigan law.
9. Who must notify the Department of a change of address for a licensed
builder?
A. Licensee ✔️
B. Bookkeeper
C. Secretary of State
D. Lawyer
Correct Answer: A
💭 Rationale: It is the builder’s responsibility to keep their contact information
current with the licensing authority, ensuring compliance and communication.
, 10. In concrete work, why do we vibrate freshly placed concrete?
A. Add water for strength
B. To remove air bubbles ✔️
C. To cure it faster
D. To color it uniformly
Correct Answer: B
💭 Rationale: Vibration consolidates concrete by eliminating entrapped air,
which increases strength and durability.
11. If a basement wall shows a crack, the recommended repair method is:
A. Patch with drywall
B. Epoxy cement ✔️
C. Paint over it
D. Ignore it
Correct Answer: B
💭 Rationale: Epoxy cement is used to structurally seal cracks in concrete to
restore strength and prevent water intrusion.
12. What is balloon framing?
A. Studs built horizontally
B. Studs continuous from sill to plate ✔️
**C. Roof truss design
D. A type of fencing
Correct Answer: B
💭 Rationale: Balloon framing refers to a method where wall studs run
uninterrupted from the foundation sill plate to the roof plate.
13. Which type of insurance is required for a licensed Michigan builder?
A. Homeowner’s insurance
B. Builder’s risk insurance
C. General liability insurance ✔️
D. Life insurance
QUESTIONS & DETAILED ANSWERS and detailed
rationales, Builder/Contractor licensing exam, including
licensing law, business and law topics, and construction–
trade fundamentals.
1. What is the penalty for the first offense of practicing as a residential builder
without a license?
A. $500 fine only
B. Not less than $5,000 and not more than $25,000 and/or one year in prison ✔️
C. $1,000 fine and 6 months in jail
D. License revoked permanently
Correct Answer: B
💭 Rationale: In Michigan, engaging in residential building without proper
licensure is a serious statutory violation. The penalty for a first offense is set
between $5,000 and $25,000 and/or up to one year of incarceration. (Scribd)
2. Which of the following trades is not covered under a Michigan residential
builder’s license?
A. HVAC ✔️
B. Carpentry
C. Roofing
D. Concrete work
Correct Answer: A
💭 Rationale: After licensure, a Michigan residential builder may perform all
trades except plumbing, electrical, and HVAC unless separately licensed.
HVAC work typically requires its own certification. (Scribd)
3. Who administers the Michigan Builders License Exam?
A. LARA
B. PSI ✔️
C. ABC
D. OSHA
,Correct Answer: B
💭 Rationale: PSI (Professional Service Industries, Inc.) is the contracted
testing provider that administers the Michigan Builders License exam on behalf
of the state. (Scribd)
4. What does a “span table” tell you on the carpentry section of the exam?
A. How to install a roof
B. What species and grade of lumber a floor joist must be to span a distance ✔️
C. Electrical load capacity
D. Permit requirements
Correct Answer: B
💭 Rationale: Span tables are used in framing to determine allowable joist
sizes and spacing depending on species, grade, and load requirements. (Quizlet)
5. A newly constructed building cannot be occupied without which of the
following?
A. Certificate of Occupancy ✔️
B. Final payment to subcontractors
C. Signed contract
D. Building permit only
Correct Answer: A
💭 Rationale: A Certificate of Occupancy is the formal approval that a building
has met all code requirements and is safe for occupancy — a fundamental code
provision. (Scribd)
6. Under the EPA Lead Renovation, Repair, and Painting rule (RRP), how
many days before renovating a home built before 1978 must the lead
pamphlet be mailed?
A. 7 days ✔️
B. 10 days
C. 30 days
D. 60 days
Correct Answer: A
💭 Rationale: Federal lead safety rules require pre-renovation disclosure and
,documentation at least 7 days before beginning work on homes built before
1978.
7. How often is the Michigan Construction Code updated?
A. Every 1 year
B. Every 2 years
C. Every 3 years ✔️
D. Every 5 years
Correct Answer: C
💭 Rationale: The state construction code is typically revised every three years
to reflect current building practices and safety standards.
8. A contractor convicted with intent to defraud faces which of the following
penalties?
A. $100 fine only
B. $100 or less
C. Not less than $100 nor more than $5,000 and/or imprisonment 6 months to 3 years
✔️
D. Suspension only
Correct Answer: C
💭 Rationale: Frauds involving building contracts are penalized seriously with
fines and possible prison sentences under Michigan law.
9. Who must notify the Department of a change of address for a licensed
builder?
A. Licensee ✔️
B. Bookkeeper
C. Secretary of State
D. Lawyer
Correct Answer: A
💭 Rationale: It is the builder’s responsibility to keep their contact information
current with the licensing authority, ensuring compliance and communication.
, 10. In concrete work, why do we vibrate freshly placed concrete?
A. Add water for strength
B. To remove air bubbles ✔️
C. To cure it faster
D. To color it uniformly
Correct Answer: B
💭 Rationale: Vibration consolidates concrete by eliminating entrapped air,
which increases strength and durability.
11. If a basement wall shows a crack, the recommended repair method is:
A. Patch with drywall
B. Epoxy cement ✔️
C. Paint over it
D. Ignore it
Correct Answer: B
💭 Rationale: Epoxy cement is used to structurally seal cracks in concrete to
restore strength and prevent water intrusion.
12. What is balloon framing?
A. Studs built horizontally
B. Studs continuous from sill to plate ✔️
**C. Roof truss design
D. A type of fencing
Correct Answer: B
💭 Rationale: Balloon framing refers to a method where wall studs run
uninterrupted from the foundation sill plate to the roof plate.
13. Which type of insurance is required for a licensed Michigan builder?
A. Homeowner’s insurance
B. Builder’s risk insurance
C. General liability insurance ✔️
D. Life insurance
