Michigan Residential Builder's License Exam Questions
With 100% Verified Solution
Which document lists each subcontractor, supplier & laborer for whom payment of
wages or fringe benefits and withholdings are due but unpaid, with whom the
contractor/subcontractor has contracted/subcontracted for performance under the
contract with the owner/lessee and the amount due to the persons as of the date of the
statement? - ANSWER The Sworn Statement
A claim lien MUST be completed within how many days of last being on the job site? -
ANSWER 90 days
If, after filing a claim of lien, you DO get paid before the lawsuit, what form must you
complete? - ANSWER Discharge of Construction Lien
What is the maximum amount you can collect through a judgement in small claims
division of the district court using small claims form DC84? - ANSWER $6,000
After Mr. Jones receives a sworn statement that he owes ABC Framing $40,000, how
does Mr. Jones know that ABC Framing was ever on the job site? - ANSWER Proof of
Service of Notice of Furnishing
According to the State Construction Code Act, how often will the state code be updated
by the Construction Code Commission? - ANSWER Every 3 years
The Uniform Commercial Code states that a contract for the sale of goods for the price
of $1,000 or more must be presented in what form? - ANSWER In writing sufficient to
indicate a sale between parties and signed
According to the American's with Disabilities Act (ADA), are employees allowed to
required to a medical exam before making an offer? - ANSWER No
Minimum Wage Law states: - ANSWER -After 40 hours in any work week,
compensation is 1 1/2 times the regular rate
-An employer may not discriminate based on sex when paying employees for the same
work requirement
Who is covered by the Employing Minors Youth Employment Standards Act? -
ANSWER Ages 14, 15 ,16, and 17
The Family Medical Leave Act (FMLA) states: - ANSWER -Employees may receive
unpaid leave for certain reasons
,-Employees may receive up to 12 weeks of leave in a 12 month period
-This law pertains to employer with 50+ employees engaged in commerce or affecting
commerce
True or False
In regard to employing minors, every 5 hours of work requires a 30 min break -
ANSWER True
True or False
A minor shall not work more than 4 days a week - ANSWER False
A minor shall not work more that 6 days a
week
True or False
In a sole proprietorship, the owner determines how profits are used - ANSWER True
A disadvantage of a general partnership: - ANSWER Each partner is liable for the
business debts of the other partner
What allows an individual to invest in a general partnership but have no input as to how
the partnership is operated? - ANSWER A Limited Partnership
What is it called when several business members come together to form a new
business entity larger and more financially stronger than if they acted alone? -
ANSWER Joint Venture
How many days after notification of a complaint does the respondent have to respond? -
ANSWER 15 days
Once the investigative unit receives a complaint, who do the verify the legitimacy of the
complaint with? - ANSWER The building inspector of the local jurisdiction (City
Building Department)
If the dispute cannot be resolved at the informal conference, where does it go next? -
ANSWER Administrative Law Hearings Examiner (AKA Hearing/Presiding Officer)
Who are the findings/penalty(ies) of the Administrative Law Hearings Examiners are
reported to? - ANSWER -The respondent & claimant
-The board
-The investigative unit
In reference to the lien law, what is the FIRST document that has to be filled out to
continue the lien process? - ANSWER Notice of Commencement
Homes built prior to what year requires at least 1 smoke detector? - ANSWER 1974
,What STATE law regulates discrimination at the job site? - ANSWER The Elliot-Larsen
Civil Rights Act
A contract is not required if the job is under what dollar amount? - ANSWER Under
$1,000
Within how many days of being at the job site must the I9 form be completed? -
ANSWER 3 days
What act requires prevailing wages to be paid out? - ANSWER The Davis-Bacon Act
What is the most common type of contract used in residential construction? - ANSWER
Lump sum contract
What should you be sure to include in your contracts? - ANSWER -Change orders
-Weather/Ground conditions
-Buried debris
True or False
In regard to a cost plus/fees contract, the total construction costs are known to the
owner? - ANSWER False
In a cost plus/fee contract, the total construction cost will be UNKNOWN to the owner
True or False
In regard to a cost plus/fee contract, the contractor provides a target estimate? -
ANSWER True
True or False
In regard to a cost plus/fee contract, you must have a written agreement concerning
payment of contractor fees? - ANSWER True
What type of contract is used when the scope of work is poorly defined and/or to cover
emergency repairs and renovations to occupied facilities? - ANSWER Cost plus
percentage of cost contract (Time & Materials)
What type of contract requires the owner/architect to compile a list of total quantities as
well as the contractor to provide price per unit to supply and install? - ANSWER Unit
Price Contract
When having a contract signed, what should you verify first online or at the assessor's
office? - ANSWER Legal Ownership
, What is it called when asking a customer for a certain percent of money after a
section(s) of the job is completed? - ANSWER Progress Payment
What is it called, at the end of a job, you walk through with a customer and check off
any needed repairs or discuss work to be redone? - ANSWER Final Punch List
What are 2 items suggested to avoid using in your contracts? - ANSWER -Start Date
-Completion Date
Kitchen cabinet layouts from the kitchen designer are an example of what? - ANSWER
Shop Drawings
Change in conditions should be the responsibility of who? - ANSWER The owner
What should be included in close out documents? - ANSWER -Owner/Operator
manuals
-Copies of all warranties
-Check off list from mechanical contractors
With a permit, when should final payment be due? - ANSWER Upon final inspection
In a contract, it is wise to include that care and maintenance of the owner's pet(s) is the
responsibility of who? - ANSWER The owner ONLY
On new construction sites what are you required to have for everyone on site? -
ANSWER Toilet facilities
What is the best practice in regard to moving personal items? - ANSWER -You don't
move them
-Written notice to neighbors if work will include any major vibrations that could cause
items to fall
While on the job site, when is it important to take pictures? - ANSWER -Before
-During (various stages)
-After
What things should be included in a log book? - ANSWER -Weather conditions
-What subcontractors are onsite
-Various levels of progress/times
As a general contractor, what must you have onsite at all times? - ANSWER A
competent employee with a first aid card
With 100% Verified Solution
Which document lists each subcontractor, supplier & laborer for whom payment of
wages or fringe benefits and withholdings are due but unpaid, with whom the
contractor/subcontractor has contracted/subcontracted for performance under the
contract with the owner/lessee and the amount due to the persons as of the date of the
statement? - ANSWER The Sworn Statement
A claim lien MUST be completed within how many days of last being on the job site? -
ANSWER 90 days
If, after filing a claim of lien, you DO get paid before the lawsuit, what form must you
complete? - ANSWER Discharge of Construction Lien
What is the maximum amount you can collect through a judgement in small claims
division of the district court using small claims form DC84? - ANSWER $6,000
After Mr. Jones receives a sworn statement that he owes ABC Framing $40,000, how
does Mr. Jones know that ABC Framing was ever on the job site? - ANSWER Proof of
Service of Notice of Furnishing
According to the State Construction Code Act, how often will the state code be updated
by the Construction Code Commission? - ANSWER Every 3 years
The Uniform Commercial Code states that a contract for the sale of goods for the price
of $1,000 or more must be presented in what form? - ANSWER In writing sufficient to
indicate a sale between parties and signed
According to the American's with Disabilities Act (ADA), are employees allowed to
required to a medical exam before making an offer? - ANSWER No
Minimum Wage Law states: - ANSWER -After 40 hours in any work week,
compensation is 1 1/2 times the regular rate
-An employer may not discriminate based on sex when paying employees for the same
work requirement
Who is covered by the Employing Minors Youth Employment Standards Act? -
ANSWER Ages 14, 15 ,16, and 17
The Family Medical Leave Act (FMLA) states: - ANSWER -Employees may receive
unpaid leave for certain reasons
,-Employees may receive up to 12 weeks of leave in a 12 month period
-This law pertains to employer with 50+ employees engaged in commerce or affecting
commerce
True or False
In regard to employing minors, every 5 hours of work requires a 30 min break -
ANSWER True
True or False
A minor shall not work more than 4 days a week - ANSWER False
A minor shall not work more that 6 days a
week
True or False
In a sole proprietorship, the owner determines how profits are used - ANSWER True
A disadvantage of a general partnership: - ANSWER Each partner is liable for the
business debts of the other partner
What allows an individual to invest in a general partnership but have no input as to how
the partnership is operated? - ANSWER A Limited Partnership
What is it called when several business members come together to form a new
business entity larger and more financially stronger than if they acted alone? -
ANSWER Joint Venture
How many days after notification of a complaint does the respondent have to respond? -
ANSWER 15 days
Once the investigative unit receives a complaint, who do the verify the legitimacy of the
complaint with? - ANSWER The building inspector of the local jurisdiction (City
Building Department)
If the dispute cannot be resolved at the informal conference, where does it go next? -
ANSWER Administrative Law Hearings Examiner (AKA Hearing/Presiding Officer)
Who are the findings/penalty(ies) of the Administrative Law Hearings Examiners are
reported to? - ANSWER -The respondent & claimant
-The board
-The investigative unit
In reference to the lien law, what is the FIRST document that has to be filled out to
continue the lien process? - ANSWER Notice of Commencement
Homes built prior to what year requires at least 1 smoke detector? - ANSWER 1974
,What STATE law regulates discrimination at the job site? - ANSWER The Elliot-Larsen
Civil Rights Act
A contract is not required if the job is under what dollar amount? - ANSWER Under
$1,000
Within how many days of being at the job site must the I9 form be completed? -
ANSWER 3 days
What act requires prevailing wages to be paid out? - ANSWER The Davis-Bacon Act
What is the most common type of contract used in residential construction? - ANSWER
Lump sum contract
What should you be sure to include in your contracts? - ANSWER -Change orders
-Weather/Ground conditions
-Buried debris
True or False
In regard to a cost plus/fees contract, the total construction costs are known to the
owner? - ANSWER False
In a cost plus/fee contract, the total construction cost will be UNKNOWN to the owner
True or False
In regard to a cost plus/fee contract, the contractor provides a target estimate? -
ANSWER True
True or False
In regard to a cost plus/fee contract, you must have a written agreement concerning
payment of contractor fees? - ANSWER True
What type of contract is used when the scope of work is poorly defined and/or to cover
emergency repairs and renovations to occupied facilities? - ANSWER Cost plus
percentage of cost contract (Time & Materials)
What type of contract requires the owner/architect to compile a list of total quantities as
well as the contractor to provide price per unit to supply and install? - ANSWER Unit
Price Contract
When having a contract signed, what should you verify first online or at the assessor's
office? - ANSWER Legal Ownership
, What is it called when asking a customer for a certain percent of money after a
section(s) of the job is completed? - ANSWER Progress Payment
What is it called, at the end of a job, you walk through with a customer and check off
any needed repairs or discuss work to be redone? - ANSWER Final Punch List
What are 2 items suggested to avoid using in your contracts? - ANSWER -Start Date
-Completion Date
Kitchen cabinet layouts from the kitchen designer are an example of what? - ANSWER
Shop Drawings
Change in conditions should be the responsibility of who? - ANSWER The owner
What should be included in close out documents? - ANSWER -Owner/Operator
manuals
-Copies of all warranties
-Check off list from mechanical contractors
With a permit, when should final payment be due? - ANSWER Upon final inspection
In a contract, it is wise to include that care and maintenance of the owner's pet(s) is the
responsibility of who? - ANSWER The owner ONLY
On new construction sites what are you required to have for everyone on site? -
ANSWER Toilet facilities
What is the best practice in regard to moving personal items? - ANSWER -You don't
move them
-Written notice to neighbors if work will include any major vibrations that could cause
items to fall
While on the job site, when is it important to take pictures? - ANSWER -Before
-During (various stages)
-After
What things should be included in a log book? - ANSWER -Weather conditions
-What subcontractors are onsite
-Various levels of progress/times
As a general contractor, what must you have onsite at all times? - ANSWER A
competent employee with a first aid card
