Michigan Builders License
Exam: 200 Practice Exam
Questions And Correct
Answers (Verified Answers)
Plus Rationales 2025/2026
Q&A | Instant Download Pdf
1. What is the penalty for the first offense of practicing as a
residential builder without a license in Michigan?
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
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 .
2. Which agency administers the Michigan Builders License
Exam?
A. LARA
B. PSI
,C. ABC
D. OSHA
Correct Answer: B
PSI (Professional Service Industries, Inc.) is the contracted
testing provider that administers the Michigan Builders
License exam on behalf of the state .
3. Which Michigan agency is primarily responsible for
administering the Occupational Code that governs builders
and contractors?
A. Michigan Department of Transportation (MDOT)
B. Michigan Department of Licensing and Regulatory Affairs
(LARA)
C. Michigan Department of Treasury
D. Michigan Department of Labor and Economic Opportunity
Correct Answer: B
LARA, through the Building Codes Division, enforces the
Occupational Code (PA 299 of 1980) .
4. What is the cost for the individual builder's license in
Michigan?
A. $100
B. $195
C. $250
D. $500
Correct Answer: B
The fee for an individual builder's license is $195 .
5. The Department and the _________ may remove a
limitation from a license.
,A. Hearing Examiner
B. Director
C. Board
D. Commission
Correct Answer: C
The Board has the authority to remove limitations from a
license .
6. The Governor appoints the members of the Board with
the advice and consent of the _________ .
A. Board
B. Director
C. Senate
D. Department
Correct Answer: C
Board members are appointed by the Governor with Senate
consent .
7. How many members serve on the Michigan Builders
Board?
A. 7 members
B. 9 members
C. 11 members
D. 13 members
Correct Answer: B
The Board consists of 9 members - 6 individuals with licenses
in the occupation and 3 general public members .
8. What is required of a non-resident of Michigan to obtain
a builder's license?
, A. $2,000 bond
B. Passing the Michigan builders exam
C. Irrevocable consent to service
D. Passing the Michigan builders exam and filing an
irrevocable consent to service
Correct Answer: D
Non-residents must pass the exam and file an irrevocable
consent to service .
9. Upon final order of license suspension or revocation, the
licensee shall surrender the license to the department
within how many days?
A. 10 days
B. 14 days
C. 7 days
D. 30 days
Correct Answer: A
Licensees must surrender their license within 10 days of the
suspension or revocation date .
10. If you fail to renew your license or registration on or
before the expiration date, how many days do you have to
resubmit with the proper payment and late fee?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
Exam: 200 Practice Exam
Questions And Correct
Answers (Verified Answers)
Plus Rationales 2025/2026
Q&A | Instant Download Pdf
1. What is the penalty for the first offense of practicing as a
residential builder without a license in Michigan?
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
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 .
2. Which agency administers the Michigan Builders License
Exam?
A. LARA
B. PSI
,C. ABC
D. OSHA
Correct Answer: B
PSI (Professional Service Industries, Inc.) is the contracted
testing provider that administers the Michigan Builders
License exam on behalf of the state .
3. Which Michigan agency is primarily responsible for
administering the Occupational Code that governs builders
and contractors?
A. Michigan Department of Transportation (MDOT)
B. Michigan Department of Licensing and Regulatory Affairs
(LARA)
C. Michigan Department of Treasury
D. Michigan Department of Labor and Economic Opportunity
Correct Answer: B
LARA, through the Building Codes Division, enforces the
Occupational Code (PA 299 of 1980) .
4. What is the cost for the individual builder's license in
Michigan?
A. $100
B. $195
C. $250
D. $500
Correct Answer: B
The fee for an individual builder's license is $195 .
5. The Department and the _________ may remove a
limitation from a license.
,A. Hearing Examiner
B. Director
C. Board
D. Commission
Correct Answer: C
The Board has the authority to remove limitations from a
license .
6. The Governor appoints the members of the Board with
the advice and consent of the _________ .
A. Board
B. Director
C. Senate
D. Department
Correct Answer: C
Board members are appointed by the Governor with Senate
consent .
7. How many members serve on the Michigan Builders
Board?
A. 7 members
B. 9 members
C. 11 members
D. 13 members
Correct Answer: B
The Board consists of 9 members - 6 individuals with licenses
in the occupation and 3 general public members .
8. What is required of a non-resident of Michigan to obtain
a builder's license?
, A. $2,000 bond
B. Passing the Michigan builders exam
C. Irrevocable consent to service
D. Passing the Michigan builders exam and filing an
irrevocable consent to service
Correct Answer: D
Non-residents must pass the exam and file an irrevocable
consent to service .
9. Upon final order of license suspension or revocation, the
licensee shall surrender the license to the department
within how many days?
A. 10 days
B. 14 days
C. 7 days
D. 30 days
Correct Answer: A
Licensees must surrender their license within 10 days of the
suspension or revocation date .
10. If you fail to renew your license or registration on or
before the expiration date, how many days do you have to
resubmit with the proper payment and late fee?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
