MICHIGAN BUILDERS
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Verification Form I-9 must be completed by applicants providing proof of identity and
employment eligibility within ______ of employment. - ANSWER 3 days
What type of business is the easiest to establish and allows the owner to determine how
profits are used although they are personally liable for all debt and assets? -
ANSWER Sole Proprietorship
A ______is a joint co-owner partnership established to specifically increase bonding and
bidding capacities and profits. - ANSWER General Proprietorship
Provisions of the Americans with Disabilities (ADA) Law apply to employers having _____
employees. - ANSWER 15 or more
What Federal Act requires those working on federal and federally funded construction
projects to be paid a minimum prevailing wage for their trade? - ANSWER Davis Bacon
Which of the following are fringe benefits that supplement an employee's hourly wage? -
ANSWER Paid vacation, sick leave, 401k plan company vehicle
To avoid being held liable, the contractor must file a _______ once the lien payment is
received. - ANSWER Lien release
1
,What is the Michigan Act 230? - ANSWER It creates the Commission and regulates
code and inspections in the State.
What unit is issued a Certificate of Acceptability and will not be inspected at the site? -
ANSWER Manufactured home
What is the purpose of the subcontractor completing a Sworn Statement? -
ANSWER To get paid by the contractor
What is the purpose of a Partial Unconditional Waiver? - ANSWER To prove that partial
payment to subs or suppliers has been received.
The subcontractor has ______ to file a lien against the property for non-payment from the
contractor. - ANSWER 90 days
What is the penalty to contractors or subcontractors for intentionally trying to defraud
employees or a customer? - ANSWER A fine of no more than $5,000 and/or 3 yrs in
prison
In accordance with the Michigan Construction Lien Act, the homeowner has _____ to
provide signed copies of the Commencement Agreement to the all parties that request it. -
ANSWER 10 days
The contractor provides a blank Notice of Furnishing to whomever requests the
Commencement Agreement. It must be completed and returned to the contractor every
________. - ANSWER 20 days if they are a supplier; 30 days if they are a laborer
If a builder is required to be licensed, the penalty for working without a license ____. -
ANSWER is a fine no less that $5,000 or greater than $25,000
2
, Upon final order of license suspension or revocation, the licensee has _____ in which to
surrender their license to the Department. - ANSWER 10 days
Failing to renew one's license before the deadline will result in a _____. - ANSWER $20
late fee
How long does the homeowner/business have to file a complaint after the project is
completed? - ANSWER 18 months
What aids and protects the contractor from accusations of project abandonment without a
good legal excuse? - ANSWER The arbitration clause
To avoid being fined, the contractor must notify the Department within _____ of relocating
their business or changing the business' name. - ANSWER 10 days
Definitively, a _______ is a person that constructs, replaces, improves, or demolishes
residential or commercial structures for a fixed or lump sum price or fee. -
ANSWER Licensed Residential Builder
When can a subcontractor work without being licensed? - ANSWER When they are
working under a licensed contractor that is not a mechanical contractor
An owner/landlord is not permitted to do their own building alterations _______. -
ANSWER When the repairs are structural in nature
A complaint is _______ when it cannot be resolved at the informal investigative hearing. -
ANSWER referred to the Administrative Law Hearing Examiner
What body assesses the penalty and issues the "Final Order" to settle the complaint? -
ANSWER The Board
3
UPDATE!!!!2025/2026|GUARANTEED PASS|GRADED
Verification Form I-9 must be completed by applicants providing proof of identity and
employment eligibility within ______ of employment. - ANSWER 3 days
What type of business is the easiest to establish and allows the owner to determine how
profits are used although they are personally liable for all debt and assets? -
ANSWER Sole Proprietorship
A ______is a joint co-owner partnership established to specifically increase bonding and
bidding capacities and profits. - ANSWER General Proprietorship
Provisions of the Americans with Disabilities (ADA) Law apply to employers having _____
employees. - ANSWER 15 or more
What Federal Act requires those working on federal and federally funded construction
projects to be paid a minimum prevailing wage for their trade? - ANSWER Davis Bacon
Which of the following are fringe benefits that supplement an employee's hourly wage? -
ANSWER Paid vacation, sick leave, 401k plan company vehicle
To avoid being held liable, the contractor must file a _______ once the lien payment is
received. - ANSWER Lien release
1
,What is the Michigan Act 230? - ANSWER It creates the Commission and regulates
code and inspections in the State.
What unit is issued a Certificate of Acceptability and will not be inspected at the site? -
ANSWER Manufactured home
What is the purpose of the subcontractor completing a Sworn Statement? -
ANSWER To get paid by the contractor
What is the purpose of a Partial Unconditional Waiver? - ANSWER To prove that partial
payment to subs or suppliers has been received.
The subcontractor has ______ to file a lien against the property for non-payment from the
contractor. - ANSWER 90 days
What is the penalty to contractors or subcontractors for intentionally trying to defraud
employees or a customer? - ANSWER A fine of no more than $5,000 and/or 3 yrs in
prison
In accordance with the Michigan Construction Lien Act, the homeowner has _____ to
provide signed copies of the Commencement Agreement to the all parties that request it. -
ANSWER 10 days
The contractor provides a blank Notice of Furnishing to whomever requests the
Commencement Agreement. It must be completed and returned to the contractor every
________. - ANSWER 20 days if they are a supplier; 30 days if they are a laborer
If a builder is required to be licensed, the penalty for working without a license ____. -
ANSWER is a fine no less that $5,000 or greater than $25,000
2
, Upon final order of license suspension or revocation, the licensee has _____ in which to
surrender their license to the Department. - ANSWER 10 days
Failing to renew one's license before the deadline will result in a _____. - ANSWER $20
late fee
How long does the homeowner/business have to file a complaint after the project is
completed? - ANSWER 18 months
What aids and protects the contractor from accusations of project abandonment without a
good legal excuse? - ANSWER The arbitration clause
To avoid being fined, the contractor must notify the Department within _____ of relocating
their business or changing the business' name. - ANSWER 10 days
Definitively, a _______ is a person that constructs, replaces, improves, or demolishes
residential or commercial structures for a fixed or lump sum price or fee. -
ANSWER Licensed Residential Builder
When can a subcontractor work without being licensed? - ANSWER When they are
working under a licensed contractor that is not a mechanical contractor
An owner/landlord is not permitted to do their own building alterations _______. -
ANSWER When the repairs are structural in nature
A complaint is _______ when it cannot be resolved at the informal investigative hearing. -
ANSWER referred to the Administrative Law Hearing Examiner
What body assesses the penalty and issues the "Final Order" to settle the complaint? -
ANSWER The Board
3
