MICHIGAN RESIDENTIAL BUILDERS EXAM
COMPREHENSIVE TEST – 2026/2027 EDITION
Table of Contents
Section Domain Approx. Page
Questions Reference
I Licensing, Regulation & Occupational 40 1
Code
II Business Management, Estimating & 35 6
Job Costing
III Contracts, Liability & Risk 30 12
Management
IV Design & Building Science 25 17
V Project Management & Scheduling 20 21
VI Michigan Residential Code (MRC 30 24
2015)
VII Construction Safety Standards 20 29
(MIOSHA)
SECTION I: LICENSING, REGULATION & OCCUPATIONAL CODE
1. Under Article 24 of the Occupational Code, what is the maximum fine for a
first offense of engaging in residential building without a license?
A. $1,000
B. $5,000
C. $25,000
D. $50,000
,Correct Answer: C
Rationale: Act 299 Article 24 specifies that unlicensed practice carries a fine of not
less than $5,000 and not more than $25,000 and/or up to one year imprisonment
for a first offense. The maximum fine within this range is $25,000.
2. Which state agency is primarily responsible for administering the
Occupational Code that governs residential builders in Michigan?
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
Rationale: LARA, through its Building Codes Division, enforces the Occupational
Code (PA 299 of 1980) and oversees builder licensing.
3. How many members serve on the Michigan Residential Builders and
Maintenance & Alteration Contractors Board?
A. 5 members
B. 7 members
C. 9 members
D. 11 members
Correct Answer: C
Rationale: The Board consists of 9 members — 6 individuals with licenses in the
occupation and 3 general public members.
4. Within how many days must a licensee surrender their license to the
department upon a final order of suspension or revocation?
A. 5 days
B. 10 days
C. 14 days
D. 30 days
,Correct Answer: B
Rationale: Licensees must surrender their license within 10 days of the suspension
or revocation date.
5. How many hours of approved prelicensure education must an applicant
complete before taking the Residential Builders Examination?
A. 30 hours
B. 45 hours
C. 60 hours
D. 90 hours
Correct Answer: C
Rationale: An applicant must complete 60 hours of approved prelicensure
education prior to taking the examination or submitting a license application.
6. Which of the following is NOT a requirement to obtain a Michigan residential
builder's license?
A. Taking and passing the residential builder's examination
B. Paying the required license fee
C. Completion of 60 hours of required study
D. Completing a one-year apprenticeship under a licensed builder
Correct Answer: D
Rationale: The 60-hour prelicensure education, passing the exam, and paying the
fee are required. A one-year apprenticeship is not a statutory requirement for
licensure.
7. Which agency administers the Michigan Builders License Examination on
behalf of the state?
A. LARA
B. PSI Services LLC
C. ABC Testing
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.
8. What is the cost for an individual builder's license in Michigan?
A. $100
B. $195
C. $250
D. $500
Correct Answer: B
Rationale: The fee for an individual builder's license is $195.
9. The Governor appoints members of the Board with the advice and consent of
the ______.
A. House of Representatives
B. Director
C. Senate
D. Department
Correct Answer: C
Rationale: Board members are appointed by the Governor with the advice and
consent of the Senate.
10. What is required of a non-resident of Michigan to obtain a builder's license?
A. A $2,000 bond
B. Passing the Michigan builders exam
C. Filing an irrevocable consent to service
D. Passing the Michigan builders exam and filing an irrevocable consent to service
Correct Answer: D
Rationale: Non-residents must pass the exam and file an irrevocable consent to
service.
COMPREHENSIVE TEST – 2026/2027 EDITION
Table of Contents
Section Domain Approx. Page
Questions Reference
I Licensing, Regulation & Occupational 40 1
Code
II Business Management, Estimating & 35 6
Job Costing
III Contracts, Liability & Risk 30 12
Management
IV Design & Building Science 25 17
V Project Management & Scheduling 20 21
VI Michigan Residential Code (MRC 30 24
2015)
VII Construction Safety Standards 20 29
(MIOSHA)
SECTION I: LICENSING, REGULATION & OCCUPATIONAL CODE
1. Under Article 24 of the Occupational Code, what is the maximum fine for a
first offense of engaging in residential building without a license?
A. $1,000
B. $5,000
C. $25,000
D. $50,000
,Correct Answer: C
Rationale: Act 299 Article 24 specifies that unlicensed practice carries a fine of not
less than $5,000 and not more than $25,000 and/or up to one year imprisonment
for a first offense. The maximum fine within this range is $25,000.
2. Which state agency is primarily responsible for administering the
Occupational Code that governs residential builders in Michigan?
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
Rationale: LARA, through its Building Codes Division, enforces the Occupational
Code (PA 299 of 1980) and oversees builder licensing.
3. How many members serve on the Michigan Residential Builders and
Maintenance & Alteration Contractors Board?
A. 5 members
B. 7 members
C. 9 members
D. 11 members
Correct Answer: C
Rationale: The Board consists of 9 members — 6 individuals with licenses in the
occupation and 3 general public members.
4. Within how many days must a licensee surrender their license to the
department upon a final order of suspension or revocation?
A. 5 days
B. 10 days
C. 14 days
D. 30 days
,Correct Answer: B
Rationale: Licensees must surrender their license within 10 days of the suspension
or revocation date.
5. How many hours of approved prelicensure education must an applicant
complete before taking the Residential Builders Examination?
A. 30 hours
B. 45 hours
C. 60 hours
D. 90 hours
Correct Answer: C
Rationale: An applicant must complete 60 hours of approved prelicensure
education prior to taking the examination or submitting a license application.
6. Which of the following is NOT a requirement to obtain a Michigan residential
builder's license?
A. Taking and passing the residential builder's examination
B. Paying the required license fee
C. Completion of 60 hours of required study
D. Completing a one-year apprenticeship under a licensed builder
Correct Answer: D
Rationale: The 60-hour prelicensure education, passing the exam, and paying the
fee are required. A one-year apprenticeship is not a statutory requirement for
licensure.
7. Which agency administers the Michigan Builders License Examination on
behalf of the state?
A. LARA
B. PSI Services LLC
C. ABC Testing
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.
8. What is the cost for an individual builder's license in Michigan?
A. $100
B. $195
C. $250
D. $500
Correct Answer: B
Rationale: The fee for an individual builder's license is $195.
9. The Governor appoints members of the Board with the advice and consent of
the ______.
A. House of Representatives
B. Director
C. Senate
D. Department
Correct Answer: C
Rationale: Board members are appointed by the Governor with the advice and
consent of the Senate.
10. What is required of a non-resident of Michigan to obtain a builder's license?
A. A $2,000 bond
B. Passing the Michigan builders exam
C. Filing an irrevocable consent to service
D. Passing the Michigan builders exam and filing an irrevocable consent to service
Correct Answer: D
Rationale: Non-residents must pass the exam and file an irrevocable consent to
service.
