MICHIGAN RESIDENTIAL BUILDERS EXAM PSI
COMPLETE QUESTIONS WITH 100% VERIFIED
ANSWERS AND EXPLANATIONS
1 What is the penalty for a first offense of engaging in the practice of
residential building without a license in Michigan?
A Not less than $1,000 and not more than $5,000 and/or 30 days
B Not less than $5,000 and not more than $25,000 and/or 1 year
(Correct)
C Not less than $500 and not more than $1,000 and/or 90 days
D Not less than $10,000 and not more than $50,000 and/or 2 years
Explanation: Under MCL 339.601(6)(a), a first offense for unlicensed
residential building practice is a misdemeanor with fines of $5,000 to
$25,000 and/or up to one year imprisonment .
2 What agency regulates residential builder licenses in Michigan?
A PSI Services LLC
B Department of Transportation (MDOT)
C Department of Licensing and Regulatory Affairs (LARA) (Correct)
D Michigan Occupational Safety and Health Administration (MIOSHA)
Explanation: LARA’s Bureau of Construction Codes oversees licensing for
residential builders and M&A contractors in Michigan .
3 Who is the testing company that administers the Michigan Residential
Builder License Exam?
A LARA
,B ICC
C PSI (Correct)
D Pearson VUE
Explanation: PSI Services LLC is the contracted testing company that
administers the Michigan Residential Builder License Exam under
contract with LARA .
4 What are the two parts of the Michigan Residential Builder
Examination?
A Business Management and OSHA Safety
B Carpentry and Electrical
C Business and Law / Practice and Trade (Correct)
D Code Enforcement and Construction Math
Explanation: The exam consists of a 50-question Business & Law section
and a 110-question Practice & Trade section .
5 How long does a candidate have to complete the Practice & Trade
portion of the exam?
A 120 minutes
B 150 minutes
C 180 minutes (Correct)
D 240 minutes
Explanation: The Practice & Trade portion of the Michigan Residential
Builder exam allows 180 minutes (3 hours) for completion .
6 What is the total number of questions on the Michigan Residential
Builder License Exam?
A 100 questions
B 160 questions (Correct)
C 200 questions
,D 120 questions
Explanation: The exam includes 50 Business & Law questions and 110
Residential Trades questions, totaling 160 questions .
7 What is the passing score required for the Michigan Residential
Builder License Exam?
A 70% (112 correct)
B 72.5% (116 correct) (Correct)
C 75% (120 correct)
D 80% (128 correct)
Explanation: Candidates must correctly answer 116 out of 160
questions to pass, which is 72.5% .
8 After receiving an initial residential builder license, how many hours
of continuing competency are required within the next 3 years?
A 12 hours
B 18 hours
C 21 hours (Correct)
D 30 hours
Explanation: Michigan requires 21 hours of continuing education every
three-year license cycle for residential builders .
9 For how many years is a Michigan residential builder license valid
before renewal?
A 1 year
B 2 years
C 3 years (Correct)
D 5 years
Explanation: License cycles run every three years; beginning with the
, license cycle after December 21, 2007, all licenses are issued for a 3-
year duration .
10 What is the penalty for engaging in unlicensed residential building
practice that results in death?
A Fine up to $10,000 and/or 1 year
B Fine up to $50,000 and/or 15 years
C Fine not less than $5,000 and not more than $25,000 and/or 4 years
(Correct)
D Fine not less than $10,000 and not more than $50,000 and/or 7 years
Explanation: Under MCL 339.601(6)(c), unlicensed practice causing
death or serious injury is a felony with fines of $5,000-$25,000 and/or
up to 4 years imprisonment .
11 Under the Michigan Occupational Code, what does the word
"limitation" refer to regarding a license?
A The geographic area where a licensee may work
B The maximum dollar amount of projects allowed
C A condition, stricture, restraint, or probation attached to a license
relative to scope of practice (Correct)
D The number of employees a licensee may supervise
Explanation: A limitation is a restriction placed on a license that defines
the boundaries of the licensee's authorized practice .
12 What is the cost of the individual residential builder license in
Michigan?
A $150
B $195 (Correct)
C $250
D $300
COMPLETE QUESTIONS WITH 100% VERIFIED
ANSWERS AND EXPLANATIONS
1 What is the penalty for a first offense of engaging in the practice of
residential building without a license in Michigan?
A Not less than $1,000 and not more than $5,000 and/or 30 days
B Not less than $5,000 and not more than $25,000 and/or 1 year
(Correct)
C Not less than $500 and not more than $1,000 and/or 90 days
D Not less than $10,000 and not more than $50,000 and/or 2 years
Explanation: Under MCL 339.601(6)(a), a first offense for unlicensed
residential building practice is a misdemeanor with fines of $5,000 to
$25,000 and/or up to one year imprisonment .
2 What agency regulates residential builder licenses in Michigan?
A PSI Services LLC
B Department of Transportation (MDOT)
C Department of Licensing and Regulatory Affairs (LARA) (Correct)
D Michigan Occupational Safety and Health Administration (MIOSHA)
Explanation: LARA’s Bureau of Construction Codes oversees licensing for
residential builders and M&A contractors in Michigan .
3 Who is the testing company that administers the Michigan Residential
Builder License Exam?
A LARA
,B ICC
C PSI (Correct)
D Pearson VUE
Explanation: PSI Services LLC is the contracted testing company that
administers the Michigan Residential Builder License Exam under
contract with LARA .
4 What are the two parts of the Michigan Residential Builder
Examination?
A Business Management and OSHA Safety
B Carpentry and Electrical
C Business and Law / Practice and Trade (Correct)
D Code Enforcement and Construction Math
Explanation: The exam consists of a 50-question Business & Law section
and a 110-question Practice & Trade section .
5 How long does a candidate have to complete the Practice & Trade
portion of the exam?
A 120 minutes
B 150 minutes
C 180 minutes (Correct)
D 240 minutes
Explanation: The Practice & Trade portion of the Michigan Residential
Builder exam allows 180 minutes (3 hours) for completion .
6 What is the total number of questions on the Michigan Residential
Builder License Exam?
A 100 questions
B 160 questions (Correct)
C 200 questions
,D 120 questions
Explanation: The exam includes 50 Business & Law questions and 110
Residential Trades questions, totaling 160 questions .
7 What is the passing score required for the Michigan Residential
Builder License Exam?
A 70% (112 correct)
B 72.5% (116 correct) (Correct)
C 75% (120 correct)
D 80% (128 correct)
Explanation: Candidates must correctly answer 116 out of 160
questions to pass, which is 72.5% .
8 After receiving an initial residential builder license, how many hours
of continuing competency are required within the next 3 years?
A 12 hours
B 18 hours
C 21 hours (Correct)
D 30 hours
Explanation: Michigan requires 21 hours of continuing education every
three-year license cycle for residential builders .
9 For how many years is a Michigan residential builder license valid
before renewal?
A 1 year
B 2 years
C 3 years (Correct)
D 5 years
Explanation: License cycles run every three years; beginning with the
, license cycle after December 21, 2007, all licenses are issued for a 3-
year duration .
10 What is the penalty for engaging in unlicensed residential building
practice that results in death?
A Fine up to $10,000 and/or 1 year
B Fine up to $50,000 and/or 15 years
C Fine not less than $5,000 and not more than $25,000 and/or 4 years
(Correct)
D Fine not less than $10,000 and not more than $50,000 and/or 7 years
Explanation: Under MCL 339.601(6)(c), unlicensed practice causing
death or serious injury is a felony with fines of $5,000-$25,000 and/or
up to 4 years imprisonment .
11 Under the Michigan Occupational Code, what does the word
"limitation" refer to regarding a license?
A The geographic area where a licensee may work
B The maximum dollar amount of projects allowed
C A condition, stricture, restraint, or probation attached to a license
relative to scope of practice (Correct)
D The number of employees a licensee may supervise
Explanation: A limitation is a restriction placed on a license that defines
the boundaries of the licensee's authorized practice .
12 What is the cost of the individual residential builder license in
Michigan?
A $150
B $195 (Correct)
C $250
D $300
