MICHIGAN RESIDENTIAL BUILDER 2026
CERTIFICATION EVALUATION 160 QUESTIONS
ANSWERS EXPERT APPROVED
◉ What is the penalty for engaging in the practice of residential
building, resulting in a death? Answer: Not less than $5K and not more
than $50K and/or 4 years
◉ On your individual builder's license application, what should you
write as your "business address"? Answer: Your personal address
◉ What is the cost of the individual builder's license? Answer: $195
◉ After receiving your residential builder's license, what are the only
trades that are not covered by your license? Answer: -Plumbing
-Electrical
-HVAC
◉ Who is the TESTING company for the State of Michigan? Answer:
PSI
◉ What is the name of the DEPARTMENT that regulates your license?
Answer: LARA
,◉ Before you may test, what must you do? Answer: Present 2 forms of
ID
◉ How should you schedule your test with PSI? Answer: -Online
-Mail
-Phone/Fax
◉ When will you receive your test score? Answer: Immediately
following the completion of the test
◉ What are the 2 parts of the Residential Builder's Exam? Answer: -
Business & Law
-Practice & Trade
◉ How long will you have to complete the Practice & Trade portion of
the exam? Answer: 180 mins
◉ What is a quick asset ratio? Answer: 1 to 1
◉ Under the carpentry section of the test, what does a "span table" tell
us? Answer: What species and what grade of lumbar a floor joist has to
be to span a certain distance
,◉ Which topics will be covered on the Practice & Trade portion of the
exam? Answer: -Carpentry
-Roofing
-Insulation
◉ Do you need a Residential Builder's License to work on commercial
projects? Answer: No
◉ Where does the most fraud occur? Answer: The residential market
◉ As a builder, your license falls under the regulation of what? Answer:
-Rules by the director & board
-Laws of The State of Michigan
◉ What is the make up of the 9 members of the board? Answer: -6
individuals that have a license/registration in the occupation in which the
board monitors
-3 members of the general public
◉ Under the definition of occupation code, what does the word
"limitation" refer to? Answer: A condition, stricture, restraint or
probation attached to a license relative to the scope of practice
, ◉ Who, upon completing a hearing, shall assess a penalty(ies)? Answer:
The Board
◉ If you fail to renew your license/registration on or before the
expiration date, how many days do you have to resubmit with the proper
payment and late fee? Answer: 60 Days
◉ When the department is investigating a complaint and finds evidence
of a violation, what actions can be brought against them? Answer: -
Cease & desist order
-Formal complaint
-Citation
◉ How many days after the administrative law hearings examiner hears
the report, must a determination of penalties be made by the board?
Answer: 60 Days
◉ What is a compliance conference? Answer: A meeting where the
respondent meets with the department to discuss the complaint against
them
◉ What is a possible penalty for operating without a residential builder's
license? Answer: -A placement of a limitation on the license
-Probation
-Suspension of license
CERTIFICATION EVALUATION 160 QUESTIONS
ANSWERS EXPERT APPROVED
◉ What is the penalty for engaging in the practice of residential
building, resulting in a death? Answer: Not less than $5K and not more
than $50K and/or 4 years
◉ On your individual builder's license application, what should you
write as your "business address"? Answer: Your personal address
◉ What is the cost of the individual builder's license? Answer: $195
◉ After receiving your residential builder's license, what are the only
trades that are not covered by your license? Answer: -Plumbing
-Electrical
-HVAC
◉ Who is the TESTING company for the State of Michigan? Answer:
PSI
◉ What is the name of the DEPARTMENT that regulates your license?
Answer: LARA
,◉ Before you may test, what must you do? Answer: Present 2 forms of
ID
◉ How should you schedule your test with PSI? Answer: -Online
-Phone/Fax
◉ When will you receive your test score? Answer: Immediately
following the completion of the test
◉ What are the 2 parts of the Residential Builder's Exam? Answer: -
Business & Law
-Practice & Trade
◉ How long will you have to complete the Practice & Trade portion of
the exam? Answer: 180 mins
◉ What is a quick asset ratio? Answer: 1 to 1
◉ Under the carpentry section of the test, what does a "span table" tell
us? Answer: What species and what grade of lumbar a floor joist has to
be to span a certain distance
,◉ Which topics will be covered on the Practice & Trade portion of the
exam? Answer: -Carpentry
-Roofing
-Insulation
◉ Do you need a Residential Builder's License to work on commercial
projects? Answer: No
◉ Where does the most fraud occur? Answer: The residential market
◉ As a builder, your license falls under the regulation of what? Answer:
-Rules by the director & board
-Laws of The State of Michigan
◉ What is the make up of the 9 members of the board? Answer: -6
individuals that have a license/registration in the occupation in which the
board monitors
-3 members of the general public
◉ Under the definition of occupation code, what does the word
"limitation" refer to? Answer: A condition, stricture, restraint or
probation attached to a license relative to the scope of practice
, ◉ Who, upon completing a hearing, shall assess a penalty(ies)? Answer:
The Board
◉ If you fail to renew your license/registration on or before the
expiration date, how many days do you have to resubmit with the proper
payment and late fee? Answer: 60 Days
◉ When the department is investigating a complaint and finds evidence
of a violation, what actions can be brought against them? Answer: -
Cease & desist order
-Formal complaint
-Citation
◉ How many days after the administrative law hearings examiner hears
the report, must a determination of penalties be made by the board?
Answer: 60 Days
◉ What is a compliance conference? Answer: A meeting where the
respondent meets with the department to discuss the complaint against
them
◉ What is a possible penalty for operating without a residential builder's
license? Answer: -A placement of a limitation on the license
-Probation
-Suspension of license
