CONTRACTOR LICENSE PRACTICE EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025 Q&A | INSTANT DOWNLOAD PDF
1. Which of the following is required to be included in a residential
construction contract in Michigan?
a. Estimated start and completion dates
b. License number of contractor
c. A notice of cancellation rights
d. All of the above
d. All of the above
All these items are legally required in a residential contract in Michigan to
protect both parties and ensure transparency.
2. How many days does a homeowner have to cancel a residential
contract in Michigan after signing?
a. 3 business days
b. 5 business days
c. 7 calendar days
d. 10 calendar days
,a. 3 business days
Michigan law provides a 3-business-day right of rescission for residential
contracts signed at the customer's home.
3. A Maintenance & Alteration license allows a contractor to:
a. Build new residential homes
b. Work on all construction trades
c. Perform specific trades such as siding or roofing
d. Install HVAC systems without additional licensing
c. Perform specific trades such as siding or roofing
The Maintenance & Alteration license is limited to specific classifications
selected by the applicant.
4. What is the penalty for contracting without a license in Michigan?
a. $100 fine
b. $500 fine and 6 months jail
c. Civil infraction only
d. No penalty
b. $500 fine and 6 months jail
It is a misdemeanor in Michigan to act as a contractor without proper
licensure, with possible fines and jail time.
5. What is the primary purpose of the Michigan Residential Code?
a. Increase profit margins
b. Encourage high-end finishes
c. Ensure safety, health, and general welfare
d. Prevent labor union conflicts
c. Ensure safety, health, and general welfare
The residential code sets minimum standards for construction to protect
the public.
, 6. Which agency regulates contractor licensing in Michigan?
a. OSHA
b. Department of Licensing and Regulatory Affairs (LARA)
c. EPA
d. Local city building department
b. Department of Licensing and Regulatory Affairs (LARA)
LARA oversees licensing for residential builders and contractors in
Michigan.
7. Which of the following trades is NOT typically covered under a
Maintenance & Alteration license?
a. Roofing
b. Electrical
c. Masonry
d. Carpentry
b. Electrical
Electrical work requires a separate license in Michigan due to safety
concerns and specialized codes.
8. What does a contractor need to do before pulling permits for work?
a. Wait 30 days
b. Have insurance only
c. Be licensed and registered with the municipality
d. Submit blueprints
c. Be licensed and registered with the municipality
Permits can only be pulled by properly licensed and registered contractors.
9. A licensed Maintenance & Alteration contractor must renew their
license: