MICHIGAN BUILDERS LICENSE UPDATED EVALUATION
ACTUAL QUESTIONS AND ANSWERS SURE A+
✔✔What determines your working capital? - ✔✔Assets - Liabilities
✔✔How long does the contractor have to complete both sections of the licensing exam?
- ✔✔1 year from stamped date on license application
✔✔Why is it unwise to do business as a sole proprietorship? - ✔✔The risk of losing all
personal assets if the project goes wrong
✔✔Two contractors that combine their commercial resources form a ______ . - ✔✔joint
venture
✔✔Who regulates the building profession, including the work and licensing? - ✔✔The
Department of Licensing and Regulatory Affairs
✔✔Why is a builder's license required to perform residential work and not for
commercial building? - ✔✔There is more fraud in residential building
✔✔What does a builder's license qualify the licensed builder to do? - ✔✔Build all of the
home except for mechanical features
✔✔Which type of bond guarantees the contractor will perform the scope of work quoted
if they win the bid? - ✔✔Bid Bond
✔✔Which type of bid bond requires the contractor to lose the entire bond to the owner if
the contractor backs out? - ✔✔Liquidated Damages
✔✔Which type of bid bond requires the contractor to pay the difference in cost to the
next lowest bid if the contractor backs out? - ✔✔Difference in Price
✔✔Which type of bond protects the owner from property liens because the general
contractor pays the subcontractors and suppliers? - ✔✔Payment Bond
✔✔How many times a year must the board members meet? - ✔✔At least 2
✔✔How many board members are there? - ✔✔9
✔✔What kind of members does the board consist of? - ✔✔4 licensed builders, 2
licensed maintenance and alteration contractors, 1 registered inspector, 2 general
public
,✔✔How long is each license cycle? - ✔✔3 yrs
✔✔How much time does the department have to accept receipt of complaint to
complainant? - ✔✔15 days
✔✔How much time is allotted to respond to a formal complaint? - ✔✔15 days
✔✔How much time does the board have to determine penalties after an administrative
hearing? - ✔✔60 days
✔✔How much time does a person have to request a limitation be removed after such
notice? - ✔✔30 days
✔✔How much time does a licensed person have to submit financial records after the
board requests them? - ✔✔30 days
✔✔How much time does a licensee have to notify the department of a change in name
or address of the person? - ✔✔30 days
✔✔How much time is allotted to a licensee notifying them of an investigative
conference? - ✔✔10 days
✔✔How much time is allotted to a residential builder to return sales person's license
and for sales person to return I.D. card by certified mail? - ✔✔5 days
✔✔How much time does a licensee have to repay the construction lien fund in order to
avoid suspension of license? - ✔✔90 days
✔✔Who issues subpoenas? - ✔✔Circuit court
✔✔What are the board's duties? - ✔✔Interpretation of licensure and aid in an
investigation
✔✔What does the board promulgate? - ✔✔rules
✔✔Who develops the licensing exam? - ✔✔The board
✔✔How long does a person have to renew their license after it expires without having to
retake the exam? - ✔✔60 days
✔✔Within how long does a person have to apply for licensing after their license has
expired without having to take the exam again? - ✔✔3 yrs
, ✔✔Which type of document is used for Fast Track projects? - ✔✔Letter of Intent
✔✔Which type of document is predominately used in residential construction that
provides a total amount for stated work? - ✔✔Lump Sum Contract
✔✔Which type of document relates to a specific job and includes a breakdown of each
unit? - ✔✔Unit Price Contract
✔✔Which type of document is used in Construction Management? - ✔✔Cost plus fee
contract
✔✔Which type of document is used when the scope of work is poorly defined? -
✔✔Cost plus percentage of cost contract (Time and Materials)
✔✔What does ADA stand for? - ✔✔Americans with Disabilities Act
✔✔What are the three main points of Act 227: Home Solicitation Sales Act? - ✔✔No ID
blockers, no false statements, cancellation period of 3 business days
✔✔Which type of business ownership is easy to establish but the owner is liable for all
debts? - ✔✔Sole Proprietorship
✔✔In which type of business ownership do two or more parties merge assets, credit,
equipment, and talent but both partners are liable for business debts of the other? -
✔✔General Proprietorship
✔✔Which type of business ownership allows and individual to invest in a general
partnership but have no input to how the partnership is operated? - ✔✔Limited
Partnership
✔✔Which type of business ownership is a business type where-by one or more
individuals unite to form one entity? - ✔✔Corporation
✔✔Which type of business ownership has the benefits of being taxed as a partnership
and meets IRS requirements? - ✔✔S-Corporation
✔✔Which type of business ownership has less legal requirements and more tax and
economic benefits? - ✔✔Limited Liability Company (LLC)
✔✔Which dates should you avoid guaranteeing? - ✔✔Completion date
ACTUAL QUESTIONS AND ANSWERS SURE A+
✔✔What determines your working capital? - ✔✔Assets - Liabilities
✔✔How long does the contractor have to complete both sections of the licensing exam?
- ✔✔1 year from stamped date on license application
✔✔Why is it unwise to do business as a sole proprietorship? - ✔✔The risk of losing all
personal assets if the project goes wrong
✔✔Two contractors that combine their commercial resources form a ______ . - ✔✔joint
venture
✔✔Who regulates the building profession, including the work and licensing? - ✔✔The
Department of Licensing and Regulatory Affairs
✔✔Why is a builder's license required to perform residential work and not for
commercial building? - ✔✔There is more fraud in residential building
✔✔What does a builder's license qualify the licensed builder to do? - ✔✔Build all of the
home except for mechanical features
✔✔Which type of bond guarantees the contractor will perform the scope of work quoted
if they win the bid? - ✔✔Bid Bond
✔✔Which type of bid bond requires the contractor to lose the entire bond to the owner if
the contractor backs out? - ✔✔Liquidated Damages
✔✔Which type of bid bond requires the contractor to pay the difference in cost to the
next lowest bid if the contractor backs out? - ✔✔Difference in Price
✔✔Which type of bond protects the owner from property liens because the general
contractor pays the subcontractors and suppliers? - ✔✔Payment Bond
✔✔How many times a year must the board members meet? - ✔✔At least 2
✔✔How many board members are there? - ✔✔9
✔✔What kind of members does the board consist of? - ✔✔4 licensed builders, 2
licensed maintenance and alteration contractors, 1 registered inspector, 2 general
public
,✔✔How long is each license cycle? - ✔✔3 yrs
✔✔How much time does the department have to accept receipt of complaint to
complainant? - ✔✔15 days
✔✔How much time is allotted to respond to a formal complaint? - ✔✔15 days
✔✔How much time does the board have to determine penalties after an administrative
hearing? - ✔✔60 days
✔✔How much time does a person have to request a limitation be removed after such
notice? - ✔✔30 days
✔✔How much time does a licensed person have to submit financial records after the
board requests them? - ✔✔30 days
✔✔How much time does a licensee have to notify the department of a change in name
or address of the person? - ✔✔30 days
✔✔How much time is allotted to a licensee notifying them of an investigative
conference? - ✔✔10 days
✔✔How much time is allotted to a residential builder to return sales person's license
and for sales person to return I.D. card by certified mail? - ✔✔5 days
✔✔How much time does a licensee have to repay the construction lien fund in order to
avoid suspension of license? - ✔✔90 days
✔✔Who issues subpoenas? - ✔✔Circuit court
✔✔What are the board's duties? - ✔✔Interpretation of licensure and aid in an
investigation
✔✔What does the board promulgate? - ✔✔rules
✔✔Who develops the licensing exam? - ✔✔The board
✔✔How long does a person have to renew their license after it expires without having to
retake the exam? - ✔✔60 days
✔✔Within how long does a person have to apply for licensing after their license has
expired without having to take the exam again? - ✔✔3 yrs
, ✔✔Which type of document is used for Fast Track projects? - ✔✔Letter of Intent
✔✔Which type of document is predominately used in residential construction that
provides a total amount for stated work? - ✔✔Lump Sum Contract
✔✔Which type of document relates to a specific job and includes a breakdown of each
unit? - ✔✔Unit Price Contract
✔✔Which type of document is used in Construction Management? - ✔✔Cost plus fee
contract
✔✔Which type of document is used when the scope of work is poorly defined? -
✔✔Cost plus percentage of cost contract (Time and Materials)
✔✔What does ADA stand for? - ✔✔Americans with Disabilities Act
✔✔What are the three main points of Act 227: Home Solicitation Sales Act? - ✔✔No ID
blockers, no false statements, cancellation period of 3 business days
✔✔Which type of business ownership is easy to establish but the owner is liable for all
debts? - ✔✔Sole Proprietorship
✔✔In which type of business ownership do two or more parties merge assets, credit,
equipment, and talent but both partners are liable for business debts of the other? -
✔✔General Proprietorship
✔✔Which type of business ownership allows and individual to invest in a general
partnership but have no input to how the partnership is operated? - ✔✔Limited
Partnership
✔✔Which type of business ownership is a business type where-by one or more
individuals unite to form one entity? - ✔✔Corporation
✔✔Which type of business ownership has the benefits of being taxed as a partnership
and meets IRS requirements? - ✔✔S-Corporation
✔✔Which type of business ownership has less legal requirements and more tax and
economic benefits? - ✔✔Limited Liability Company (LLC)
✔✔Which dates should you avoid guaranteeing? - ✔✔Completion date
