[STUDY GUIDE] • HIGH-YIELD PRACTICE & REVIEW EDITION
Michigan Builders License Exam Questions
& Answers, Updated 2026/2027 Edition
Comprehensive Examination Question Bank • In-Depth Rationales • Concept Mapping
TOTAL QUESTIONS EXAM TOPICS RATIONALES
456 Questions 12 Modules 100% Verified
DOCUMENT OVERVIEW
This document contains 456 verified questions with correct answers pertaining to Michigan builders licensing
and legal requirements in the construction industry. It covers critical themes such as the Construction Lien Act,
administrative laws, and employment regulations, making it suitable for exam preparation and professional
certification review.
EXAM BLUEPRINT & TOPIC DISTRIBUTION
Systematic breakdown of subject domains and exam coverage.
Topic Module Scope & Core Focus
Explores the legal framework governing construction liens, including filing procedures and
Construction Lien Act deadlines.
Covers the process and implications of administrative hearings related to building regulations
Administrative Law Hearing and licensing.
Examines the requirements and implications of state fees for obtaining and maintaining a
State License Fee builder's license.
Focuses on the financial management and legal obligations surrounding building contract
Building Contract Fund funds.
Discusses regulations and guidelines for the employment of minors in the construction
Employing Minors Youth industry.
Analyzes employee rights and entitlements related to wages and working conditions in
Employees May Receive construction.
Construction Contract Types Reviews various types of construction contracts and their legal implications.
Fraud in Residential Construction Investigates common fraudulent practices in residential building and prevention strategies.
Project Management Techniques Details essential project management strategies and tools used in construction projects.
Confidential • Student Study Edition • Practice & Review Guide Page 1 of 87
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
Safety Regulations Examines key safety laws and standards that apply to construction sites and practices.
Outlines the regulations and codes that govern building practices to ensure safety and
Building Codes and Standards compliance.
Insurance and Bonding in Explains the importance of insurance and bonding in protecting construction projects and
Construction stakeholders.
Total Exam Coverage 12 Integrated Topic Modules • 456 Examination Questions
Confidential • Student Study Edition • Practice & Review Guide Page 2 of 87
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 1
What is the first offense penalty for engaging in the practice of residential building
without a license?
Correct Answer: Not less than $5,000 and not more than $25,000 and/or one year in prison. Subsequent
violations can extend the prison time to up to 2 years.
QUESTION 2
What is the penalty for engaging in the practice of residential builders license, resulting
in a death?
Correct Answer: Not less than $5,000 and not more than $25,000 and/or four years in prison.
QUESTION 3
On your individual builder's license application, what should you write as your
"business address"?
Correct Answer: Your personal address.
QUESTION 4
What is the cost for the individual builder's license?
Correct Answer: $195.
QUESTION 5
After receiving your residential builder's license, what are the only trades not covered
by your license?
Correct Answer: Plumbing, electrical, and HVAC.
Confidential • Student Study Edition • Practice & Review Guide Page 3 of 87
, STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 6
Who is the TESTING company for the State of Michigan?
Correct Answer: PSI.
QUESTION 7
What is the name of the department that regulates your license?
Correct Answer: LARA.
QUESTION 8
What are the 2 parts of the Residential Builder Examination?
Correct Answer: Business and Law examination/Practice and Trade examination.
QUESTION 9
What is a good quick asset ratio?
Correct Answer: 1 To 1.
QUESTION 10
Under the Carpentry section of the test, what does a "span table" tell us?
Correct Answer: What species and what grade of lumber a floor joist has to be to span a certain distance.
QUESTION 11
Which is NOT a reason that you need a residential business license? It allows you to be
able to file a lein on property It allows you to pull a residential permit It allows you to file
a lawsuit if necessary It allows you to work on commercial properties
Correct Answer: It allows you to work on commercial properties.
Confidential • Student Study Edition • Practice & Review Guide Page 4 of 87
Michigan Builders License Exam Questions
& Answers, Updated 2026/2027 Edition
Comprehensive Examination Question Bank • In-Depth Rationales • Concept Mapping
TOTAL QUESTIONS EXAM TOPICS RATIONALES
456 Questions 12 Modules 100% Verified
DOCUMENT OVERVIEW
This document contains 456 verified questions with correct answers pertaining to Michigan builders licensing
and legal requirements in the construction industry. It covers critical themes such as the Construction Lien Act,
administrative laws, and employment regulations, making it suitable for exam preparation and professional
certification review.
EXAM BLUEPRINT & TOPIC DISTRIBUTION
Systematic breakdown of subject domains and exam coverage.
Topic Module Scope & Core Focus
Explores the legal framework governing construction liens, including filing procedures and
Construction Lien Act deadlines.
Covers the process and implications of administrative hearings related to building regulations
Administrative Law Hearing and licensing.
Examines the requirements and implications of state fees for obtaining and maintaining a
State License Fee builder's license.
Focuses on the financial management and legal obligations surrounding building contract
Building Contract Fund funds.
Discusses regulations and guidelines for the employment of minors in the construction
Employing Minors Youth industry.
Analyzes employee rights and entitlements related to wages and working conditions in
Employees May Receive construction.
Construction Contract Types Reviews various types of construction contracts and their legal implications.
Fraud in Residential Construction Investigates common fraudulent practices in residential building and prevention strategies.
Project Management Techniques Details essential project management strategies and tools used in construction projects.
Confidential • Student Study Edition • Practice & Review Guide Page 1 of 87
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
Safety Regulations Examines key safety laws and standards that apply to construction sites and practices.
Outlines the regulations and codes that govern building practices to ensure safety and
Building Codes and Standards compliance.
Insurance and Bonding in Explains the importance of insurance and bonding in protecting construction projects and
Construction stakeholders.
Total Exam Coverage 12 Integrated Topic Modules • 456 Examination Questions
Confidential • Student Study Edition • Practice & Review Guide Page 2 of 87
,STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 1
What is the first offense penalty for engaging in the practice of residential building
without a license?
Correct Answer: Not less than $5,000 and not more than $25,000 and/or one year in prison. Subsequent
violations can extend the prison time to up to 2 years.
QUESTION 2
What is the penalty for engaging in the practice of residential builders license, resulting
in a death?
Correct Answer: Not less than $5,000 and not more than $25,000 and/or four years in prison.
QUESTION 3
On your individual builder's license application, what should you write as your
"business address"?
Correct Answer: Your personal address.
QUESTION 4
What is the cost for the individual builder's license?
Correct Answer: $195.
QUESTION 5
After receiving your residential builder's license, what are the only trades not covered
by your license?
Correct Answer: Plumbing, electrical, and HVAC.
Confidential • Student Study Edition • Practice & Review Guide Page 3 of 87
, STUDENT STUDY & MASTERY EDITION PRACTICE & REVIEW GUIDE
QUESTION 6
Who is the TESTING company for the State of Michigan?
Correct Answer: PSI.
QUESTION 7
What is the name of the department that regulates your license?
Correct Answer: LARA.
QUESTION 8
What are the 2 parts of the Residential Builder Examination?
Correct Answer: Business and Law examination/Practice and Trade examination.
QUESTION 9
What is a good quick asset ratio?
Correct Answer: 1 To 1.
QUESTION 10
Under the Carpentry section of the test, what does a "span table" tell us?
Correct Answer: What species and what grade of lumber a floor joist has to be to span a certain distance.
QUESTION 11
Which is NOT a reason that you need a residential business license? It allows you to be
able to file a lein on property It allows you to pull a residential permit It allows you to file
a lawsuit if necessary It allows you to work on commercial properties
Correct Answer: It allows you to work on commercial properties.
Confidential • Student Study Edition • Practice & Review Guide Page 4 of 87
