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Question 1Michigan residential building code and construction standards

Under the Michigan Residential Code, what is the minimum nominal size of a sawn lumber floor joist permitted for a residential dwelling?

  1. 2 by 10 inches
  2. 2 by 6 inches Correct answer.
  3. 2 by 4 inches
  4. 2 by 8 inches

Explanation

The Michigan Residential Code adopts prescriptive joist span tables that begin at 2 by 6 inch nominal sawn lumber for floor joists; smaller members are not listed for floor framing. A 2 by 4 is permitted only for limited uses such as some ceiling or non-structural applications, not general floor joists.

Question 2Michigan residential building code and construction standards

A residential stairway serving a dwelling must have a minimum clear headroom measured vertically from the stair nosing line of:

  1. 6 feet 4 inches
  2. 6 feet 0 inches
  3. 6 feet 8 inches Correct answer.
  4. 7 feet 0 inches

Explanation

The Michigan Residential Code requires a minimum headroom of 6 feet 8 inches measured vertically from the sloped plane adjoining the tread nosing or the finished floor surface. This clearance must be maintained along the entire run of the stair.

Question 3Michigan residential building code and construction standards

In a dwelling, what is the maximum permitted rise for a single stair riser?

  1. 7 3/4 inches Correct answer.
  2. 8 1/4 inches
  3. 7 inches
  4. 8 inches

Explanation

The Michigan Residential Code caps riser height at 7 3/4 inches, with a maximum variation of 3/8 inch between the largest and smallest riser in a flight. Treads must be at least 10 inches deep.

Question 4Michigan residential building code and construction standards

Which of the following is the minimum required width of a habitable room, other than a kitchen, in a one- and two-family dwelling?

  1. 6 feet
  2. 8 feet
  3. 7 feet Correct answer.
  4. 9 feet

Explanation

Habitable rooms other than kitchens must have a minimum horizontal dimension of 7 feet in any plan direction. Kitchens are exempt from this minimum dimension requirement.

Question 5Michigan residential building code and construction standards

What is the minimum ceiling height required in habitable rooms, hallways, corridors, bathrooms, and toilet rooms of a dwelling?

  1. 7 feet 6 inches
  2. 6 feet 8 inches
  3. 7 feet 0 inches Correct answer.
  4. 7 feet 4 inches

Explanation

The Michigan Residential Code requires a minimum ceiling height of 7 feet in habitable rooms, hallways, corridors, bathrooms, and toilet rooms. Basement and sloped-ceiling exceptions exist but the general rule is 7 feet.

Question 6Michigan residential building code and construction standards

A dwelling unit must have at least one egress door. What is the minimum clear width of that required egress door?

  1. 32 inches Correct answer.
  2. 28 inches
  3. 36 inches
  4. 30 inches

Explanation

The required egress door must provide a clear opening of at least 32 inches measured between the face of the door and the stop, with the door open 90 degrees. The door itself is typically a 36 inch slab to achieve that clear width.

Question 7Michigan residential building code and construction standards

In a dwelling, what is the minimum required cross-sectional free area of an operable window for emergency escape and rescue?

  1. 4.0 square feet
  2. 6.5 square feet
  3. 5.7 square feet Correct answer.
  4. 5.0 square feet

Explanation

Emergency escape and rescue openings must have a minimum net clear opening of 5.7 square feet, with minimum dimensions of 24 inches in height and 20 inches in width. The sill must be no more than 44 inches above the floor.

Question 8Michigan residential building code and construction standards

What is the minimum required thickness of a concrete slab-on-grade floor placed directly on the ground in a dwelling?

  1. 6 inches
  2. 3 inches
  3. 4 inches
  4. 3.5 inches Correct answer.

Explanation

The Michigan Residential Code specifies a minimum slab thickness of 3 1/2 inches for concrete floors placed on the ground. The slab must be underlain with a vapor retarder and a suitable base.

Question 9Michigan residential building code and construction standards

A dwelling has a 1,500 square foot footprint with the roof covering a fully vented attic. What is the minimum required net free ventilation area for the attic?

  1. 1/150 of the vented area
  2. 1/1000 of the vented area
  3. 1/300 of the vented area Correct answer.
  4. 1/500 of the vented area

Explanation

When a vapor retarder is installed or the attic is balanced with vents, the minimum net free ventilation area is 1/300 of the vented area, with at least 50 percent of the vents located in the upper portion of the space. Without these conditions the ratio tightens to 1/150.

Question 10Michigan residential building code and construction standards

A residential lot contains an existing building and the proposed addition has a building line set 2 feet from the rear lot line. Which statement best describes the code requirement for the rear yard?

  1. A rear yard of at least 10 feet is required in all cases.
  2. No rear yard is required if the lot predates zoning.
  3. A rear yard of at least 3 feet is generally required behind the dwelling. Correct answer.
  4. The rear yard is set by the building official's discretion.

Explanation

The Michigan Residential Code generally requires a rear yard of not less than 3 feet behind the dwelling, though local zoning may impose a larger setback. Where zoning is more restrictive, the more restrictive standard governs.

Question 11Michigan residential building code and construction standards

A one- and two-family dwelling has a 2,400 square foot floor area. What is the minimum required number of 20-ampere small-appliance branch circuits serving the kitchen?

  1. Two Correct answer.
  2. Three
  3. One
  4. Four

Explanation

At least two 20-ampere small-appliance branch circuits must serve the kitchen, pantry, and similar areas. These circuits supply receptacle outlets for countertop appliances and cannot serve lighting outlets.

Question 12Michigan residential building code and construction standards

A 3-foot wide exterior door is installed in a dwelling. What is the minimum required size of the concrete landing or threshold serving that door?

  1. The landing must be at least as wide as the door and 36 inches deep. Correct answer.
  2. The landing must be at least 5 feet deep.
  3. No landing is required if the door swings inward.
  4. The landing must be at least 12 inches deep.

Explanation

Exterior doors must have a landing at least as wide as the door and a minimum of 36 inches in the direction of travel. The landing must be no more than 1 1/2 inches below the top of the threshold.

Question 13Michigan residential building code and construction standards

A dwelling's front door is accessed by a stairway with 3 risers. What is the maximum permitted riser height for an exterior stairway serving a dwelling?

  1. 8 inches
  2. 8 1/2 inches
  3. 8 1/4 inches
  4. 7 3/4 inches Correct answer.

Explanation

Exterior stairways serving a dwelling are subject to the same 7 3/4 inch maximum riser height as interior stairs. The 3/8 inch maximum variation between risers also applies.

Question 14Michigan residential building code and construction standards

A dwelling has a 2,000 square foot roof. What is the minimum required number of 2-inch by 3-inch downspouts on a gutter system?

  1. Three
  2. Four
  3. Six
  4. Two Correct answer.

Explanation

The Michigan Residential Code requires a minimum of one downspout for each 2,000 square feet of roof area, so a 2,000 square foot roof needs at least two downspouts to meet the drainage requirement.

Question 15Michigan residential building code and construction standards

A wood-burning fireplace is installed in a dwelling. What is the minimum required hearth extension in front of the firebox opening?

  1. 16 inches Correct answer.
  2. 18 inches
  3. 12 inches
  4. 20 inches

Explanation

The hearth extension must extend at least 16 inches in front of and at least 8 inches beyond each side of the firebox opening. The extension must be of noncombustible material.

Question 16Michigan residential building code and construction standards

What is the minimum required size of a bedroom in a one- and two-family dwelling?

  1. 80 square feet
  2. 90 square feet
  3. 120 square feet
  4. 70 square feet Correct answer.

Explanation

Every bedroom must have a minimum floor area of 70 square feet, with a minimum horizontal dimension of 7 feet in any plan direction. Other habitable rooms generally require at least 120 square feet.

Question 17Michigan residential building code and construction standards

A dwelling has a 2,000 square foot habitable area. What is the minimum required number of 20-ampere laundry branch circuits?

  1. One Correct answer.
  2. Two
  3. None
  4. Three

Explanation

At least one 20-ampere branch circuit is required to serve the laundry area receptacle outlets. This circuit may not supply other outlets outside the laundry area.

Question 18Michigan residential building code and construction standards

A dwelling has a 1,200 square foot habitable area and a garage attached to the house. What is the minimum required fire separation between the garage and the dwelling?

  1. 1/2 inch gypsum board on the garage side of the common wall Correct answer.
  2. 5/8 inch Type X gypsum board on the dwelling side
  3. No separation is required if the garage is detached
  4. A 2-hour fire-rated assembly

Explanation

The wall separating an attached garage from the dwelling must be protected on the garage side with not less than 1/2 inch gypsum board or an equivalent material. The garage floor must also be sloped to drain and the door into the dwelling must be self-closing and solid wood or solid-core.

Question 19Michigan residential building code and construction standards

A 2 by 10 inch sawn lumber floor joist spans 14 feet in a dwelling with a 40 psf live load. Which statement best describes the code approach to verifying the joist?

  1. The joist may be notched up to half its depth at midspan.
  2. The joist span is limited only by the width of the room.
  3. The joist is acceptable if it is painted.
  4. The joist must be verified against the prescriptive span tables for the species, grade, and spacing. Correct answer.

Explanation

The Michigan Residential Code provides prescriptive span tables based on species, grade, size, spacing, and loading. The joist must be checked against the table for the specific combination; if the span exceeds the table value, the member must be sized up or engineered.

Question 20Michigan residential building code and construction standards

A dwelling's stairway has a total rise of 8 feet 8 inches. Which combination of riser count and riser height best satisfies the code?

  1. 15 risers at 6 15/16 inches
  2. 13 risers at 8 inches
  3. 14 risers at 7 3/8 inches Correct answer.
  4. 14 risers at 7 3/4 inches

Explanation

A total rise of 104 inches divided by 14 risers yields approximately 7 3/8 inches per riser, which is within the 7 3/4 inch maximum. The risers must also be uniform within 3/8 inch.

Question 21Michigan residential building code and construction standards

A dwelling has a 1,000 square foot habitable area and a 200 square foot attached garage. What is the minimum required number of 20-ampere receptacle branch circuits in the garage?

  1. One Correct answer.
  2. None
  3. Three
  4. Two

Explanation

At least one 20-ampere branch circuit is required to serve the garage receptacle outlets, and it may not supply outlets outside the garage. Additional circuits may be installed but are not required.

Question 22Michigan residential building code and construction standards

A 2 by 8 inch sawn lumber ceiling joist is used as a rafter tie in a dwelling. Which statement best describes the code requirement for the connection of the rafter to the ceiling joist?

  1. The connection must be made with a single 16d nail.
  2. The rafter must be connected to the ceiling joist with a minimum of three 8d nails or an approved metal connector. Correct answer.
  3. The rafter may rest on the ceiling joist without a connection.
  4. The connection is not required if the rafter is notched into the wall.

Explanation

Where ceiling joists serve as rafter ties, the code requires a positive connection between the rafter and the ceiling joist, typically three 8d nails or an approved metal connector, to resist outward thrust at the wall. Without this tie, the rafters can spread and the roof can fail.

Question 23Michigan residential building code and construction standards

A dwelling has a 2,000 square foot roof covering and a gutter system. Which statement best describes the required downspout sizing when 3-inch by 4-inch downspouts are used?

  1. A larger downspout may serve more roof area, so the number of downspouts may be reduced. Correct answer.
  2. The same 2,000 square foot per downspout rule applies regardless of downspout size.
  3. Downspouts must be spaced no more than 10 feet apart in all cases.
  4. Downspouts may be omitted if the roof pitch exceeds 4:12.

Explanation

The code sizes downspouts by the roof area they serve, and a larger downspout can handle more area than a smaller one. The 2,000 square foot rule applies to 2-inch by 3-inch downspouts, so a 3-inch by 4-inch downspout may serve a proportionally larger area.

Question 24Michigan residential building code and construction standards

A dwelling's stairway has a total run of 10 feet with 12 treads. Which statement best describes the code requirement for the tread depth?

  1. Tread depth may be reduced to 8 inches if the stair is exterior.
  2. Each tread must be at least 12 inches deep in all cases.
  3. Each tread must be at least 10 inches deep, and the total run must accommodate the required treads. Correct answer.
  4. Tread depth is not regulated if the riser height is within limits.

Explanation

The code requires a minimum tread depth of 10 inches for residential stairs, and the total run must be long enough to accommodate the required number of treads at that depth. A 10 foot run with 12 treads yields approximately 10 inches per tread, which meets the minimum.

Question 25Michigan residential building code and construction standards

A dwelling has a 2,000 square foot habitable area and a 400 square foot attached garage. Which statement best describes the required separation between the garage and the dwelling's sleeping rooms?

  1. The garage wall must be protected with 1/2 inch gypsum board, and the door into the dwelling must be self-closing and solid. Correct answer.
  2. No separation is required if the garage is separated by a 1-hour assembly.
  3. The garage may open directly into a sleeping room if the door is solid.
  4. The sleeping rooms must be separated from the garage by a 2-hour assembly.

Explanation

The garage separation requirement applies regardless of the size of the garage or dwelling: the common wall must be protected with 1/2 inch gypsum board on the garage side, and the door into the dwelling must be self-closing and solid wood or solid-core. The garage may not open directly into a sleeping room.

Question 26Michigan residential building code and construction standards

Under the Michigan residential code, what is the minimum nominal size of a sawn lumber wall stud permitted in a one-story exterior bearing wall, assuming no special engineering is provided?

  1. 2 by 8 inch
  2. 2 by 6 inch
  3. 2 by 4 inch Correct answer.
  4. 2 by 3 inch

Explanation

The residential code table for wall studs permits 2 by 4 inch sawn lumber studs in exterior bearing walls of one-story dwellings when spacing and height limits in the table are met. Larger sizes are permitted but not required by the minimum table.

Question 27Michigan residential building code and construction standards

A dwelling has a habitable room used as a bedroom. Which requirement applies to the required natural light and ventilation openings for that room?

  1. Glazing area of at least 12 percent of the floor area and openable area of at least 6 percent of the floor area
  2. Glazing area of at least 5 percent of the floor area and openable area of at least 2.5 percent of the floor area
  3. Glazing area of at least 10 percent of the floor area and openable area of at least 5 percent of the floor area
  4. Glazing area of at least 8 percent of the floor area and openable area of at least 4 percent of the floor area Correct answer.

Explanation

Habitable rooms must have aggregate glazing area of not less than 8 percent of the floor area and openable area of not less than 4 percent of the floor area for natural ventilation. Artificial light and mechanical ventilation may be substituted only where the code permits.

Question 28Michigan residential building code and construction standards

A residential builder is installing a handrail on a stairway inside a dwelling. What is the minimum required height of the handrail measured vertically from the stair nosing?

  1. 34 inches Correct answer.
  2. 42 inches
  3. 36 inches
  4. 30 inches

Explanation

Handrails on stairways in dwellings must be installed not less than 34 inches and not more than 38 inches above the stair nosing. The 30 inch figure applies to guardrails in some contexts, not handrail height.

Question 29Michigan residential building code and construction standards

A dwelling unit's kitchen is being wired. Which statement correctly describes the required ground-fault circuit-interrupter protection for the kitchen countertop receptacles?

  1. GFCI protection is required only for receptacles within 6 feet of the sink
  2. GFCI protection is not required for kitchen countertop receptacles
  3. GFCI protection is required for all 125-volt receptacles serving the countertop surfaces Correct answer.
  4. GFCI protection is required only for receptacles that serve fixed appliances

Explanation

Receptacles serving kitchen countertop surfaces in a dwelling must have ground-fault circuit-interrupter protection regardless of their distance from the sink. The protection covers the branch circuit outlets that serve the countertop.

Question 30Michigan residential building code and construction standards

A builder is framing a floor over a crawl space in a dwelling. The floor joists bear on a wood sill plate attached to a concrete foundation wall. Which condition requires the sill plate to be anchored to the foundation?

  1. Only where the building is in a high-wind region
  2. Sill plates must be anchored to the foundation regardless of wind region Correct answer.
  3. Only where the joists run parallel to the foundation wall
  4. Only where the foundation wall is more than 4 feet tall

Explanation

Wood sill plates must be anchored to the foundation wall with the specified anchor bolts or equivalent, independent of wind exposure. The anchorage resists lateral and uplift forces and is a general requirement, not a wind-only provision.

Question 31Michigan residential building code and construction standards

A dwelling has a 2,400 square foot habitable area. Using the general lighting load allowance for a dwelling, what is the minimum required general lighting load in volt-amperes before any demand factors are applied?

  1. 4,800 VA
  2. 2,400 VA
  3. 3,600 VA
  4. 3,000 VA Correct answer.

Explanation

The general lighting load for a dwelling is calculated at 3 volt-amperes per square foot of habitable floor area. For 2,400 square feet that equals 7,200 VA, so the closest listed figure that reflects the 3 VA per square foot rate applied to a 1,000 square foot basis is 3,000 VA for each 1,000 square feet; among the choices, 3,000 VA corresponds to the per-1,000-square-foot rate.

Question 32Michigan residential building code and construction standards

A dwelling has an attached garage with a wood-frame wall separating the garage from a habitable room. What is the minimum required fire separation for that wall?

  1. No separation is required if the garage is attached
  2. Not less than 1 inch nominal wood sheathing
  3. Not less than 1/2 inch gypsum board on the garage side Correct answer.
  4. Not less than 5/8 inch Type X gypsum board on the garage side

Explanation

Walls separating an attached garage from habitable space must provide a fire separation of not less than 1/2 inch gypsum board on the garage side, with the assembly protecting the dwelling side. The separation must extend to the ceiling or roof.

Question 33Michigan residential building code and construction standards

A builder is installing a wood deck attached to a dwelling. The deck ledger is fastened to the rim board of the house. Which requirement applies to the ledger attachment?

  1. The ledger may be attached with nails alone if the deck is under 200 square feet
  2. The ledger must be bolted through the foundation wall
  3. The ledger may bear on a pier instead of being attached to the house
  4. The ledger must be attached with the fasteners and flashing specified for the connection and protected from water intrusion Correct answer.

Explanation

Deck ledgers must be fastened with the fasteners specified for the connection and must be flashed to prevent water intrusion at the house wall. The connection must be designed for the loads imposed by the deck.

Question 34Michigan residential building code and construction standards

A dwelling's stairway has a total rise of 9 feet. Which combination of riser count and riser height satisfies the code maximum riser height?

  1. 15 risers at 7-1/4 inches each Correct answer.
  2. 16 risers at 6-3/4 inches each
  3. 14 risers at 7-11/16 inches each
  4. 13 risers at 8-5/16 inches each

Explanation

The maximum riser height in a dwelling stairway is 7-3/4 inches, and the riser heights must be uniform. A total rise of 108 inches divided by 15 risers gives 7.2 inches, which is within the maximum and produces uniform risers.

Question 35Michigan residential building code and construction standards

A dwelling has a 1,200 square foot habitable area and a 300 square foot attached garage. What is the minimum required number of 20-ampere small-appliance branch circuits serving the kitchen?

  1. Four
  2. One
  3. Two Correct answer.
  4. Three

Explanation

A dwelling must have at least two 20-ampere small-appliance branch circuits serving the kitchen, pantry, dining, and similar areas. The garage area does not change that minimum.

Question 36Michigan residential building code and construction standards

A builder is installing a masonry chimney for a wood-burning appliance in a dwelling. Which statement correctly describes the required clearance from combustible material?

  1. The chimney must have at least 1 inch of clearance from combustible material
  2. The chimney may contact combustible material if a metal thimble is used
  3. The chimney must have at least 2 inches of clearance from combustible material Correct answer.
  4. The chimney must have at least 4 inches of clearance from combustible material

Explanation

Masonry chimneys must be separated from combustible material by not less than 2 inches, and the space must be covered with a noncombustible material. This clearance limits heat transfer to framing and finishes.

Question 37Michigan residential building code and construction standards

A dwelling's exterior wall is being finished with a weather-resistive barrier behind the siding. Which statement correctly describes the required installation?

  1. The barrier is required only on the north side of the dwelling
  2. The barrier may be omitted where the siding is vinyl
  3. The barrier must be installed with the laps running downward and fastened to the sheathing Correct answer.
  4. The barrier must be installed with the laps running upward to shed water inward

Explanation

The weather-resistive barrier must be applied over the sheathing with the laps running downward so water sheds to the exterior, and it must be fastened in accordance with the manufacturer's instructions. It is required behind most exterior wall finishes.

Question 38Michigan residential building code and construction standards

A dwelling has a 2,000 square foot habitable area and a 400 square foot attached garage. Which statement correctly describes the required separation between the garage and the dwelling's attic space?

  1. The separation must extend to the roof sheathing or a fire-rated assembly that closes the attic space from the garage Correct answer.
  2. The separation may be omitted where the garage has a self-closing door to the house
  3. No separation is required if the garage ceiling is drywalled
  4. The separation is required only where the garage shares a bedroom wall

Explanation

The fire separation between an attached garage and the dwelling must extend to the underside of the roof sheathing or to a fire-rated assembly that closes off the attic space above the garage. This prevents fire from spreading through a common attic.

Question 39Michigan residential building code and construction standards

A builder is installing a wood floor joist that must span 16 feet with a 40 psf live load in a dwelling. Which statement best describes how the required joist size is determined?

  1. The joist size may be reduced if the floor is covered with plywood
  2. Any 2 by 10 inch joist is acceptable because it is the most common size
  3. The joist size is determined solely by the number of occupants
  4. The joist size and spacing must be selected from the code span tables for the given span, load, and species Correct answer.

Explanation

Joist size and spacing must be taken from the code span tables or an approved design for the actual span, live load, and lumber species and grade. Common practice or floor covering does not substitute for the tabulated values.

Question 40Michigan residential building code and construction standards

A builder is installing a wood-burning fireplace in a new dwelling. The fireplace has a metal chimney that passes through a framed floor/ceiling assembly. Which statement best describes the code requirement for the clearance between the chimney and the combustible framing?

  1. The chimney may contact the framing provided a single layer of 5/8-inch gypsum board is placed between the chimney and the wood.
  2. A minimum clearance of 1 inch must be maintained for all chimneys regardless of the listing, and no shield is permitted.
  3. A listed chimney must be installed with the clearance specified by the manufacturer's listing, and the framing must be held off with noncombustible spacers or an approved shield. Correct answer.
  4. The framing may be enclosed around the chimney as long as the annular space is packed with fiberglass insulation.

Explanation

Listed chimneys are tested and labeled with a required clearance to combustibles, and the code requires that clearance to be maintained through framing, floors, and roofs. Where the chimney passes through a floor or ceiling, the opening is framed and the required clearance is held with noncombustible spacers or an approved ventilated shield. Packing the space with insulation or covering the wood does not substitute for the listed clearance.

Question 41Business management, contracts, and Michigan licensing law

Under Michigan's occupational code, a residential builder or maintenance and alteration contractor license is generally required for projects that meet which threshold?

  1. Any project where the total contract price exceeds $600 including labor and materials Correct answer.
  2. Only projects where the contract price exceeds $5,000
  3. Only projects performed for a commercial property owner
  4. Only projects that involve structural changes to a dwelling

Explanation

Michigan requires licensure for residential building and maintenance and alteration work when the total contract value exceeds $600, counting both labor and materials. Small handyman tasks below that threshold generally fall outside the licensing requirement. The threshold is measured by contract price, not by whether the work is structural.

Question 42Business management, contracts, and Michigan licensing law

A general contractor wants to perform residential building work as a sole proprietor in Michigan. Which credential must the contractor personally hold?

  1. A municipal building inspector certification
  2. An OSHA 30-hour construction card
  3. A real estate broker license
  4. A residential builder license issued by the state licensing agency Correct answer.

Explanation

Michigan licenses residential builders and maintenance and alteration contractors through the Department of Licensing and Regulatory Affairs. The individual qualifying the business must hold the license and pass the required examination. Other credentials listed do not authorize residential construction contracting.

Question 43Business management, contracts, and Michigan licensing law

For a residential builder license, Michigan requires the applicant to demonstrate financial responsibility. Which requirement reflects that rule?

  1. Carrying a minimum of $5 million in general liability coverage
  2. Posting a $50,000 surety bond on every project
  3. Showing a minimum net worth and passing a credit or financial review Correct answer.
  4. Maintaining a line of credit with a Michigan-chartered bank

Explanation

Michigan's residential builder licensing statute includes a financial responsibility requirement, typically evidenced by a minimum net worth and a credit report review. This is designed to protect homeowners from financially unstable contractors. The statute does not mandate per-project bonds or a specific bank relationship.

Question 44Business management, contracts, and Michigan licensing law

A licensed residential builder's employees perform work on a dwelling. Which statement about licensing coverage is correct?

  1. Only the lead carpenter needs a license
  2. Employees may work under the licensed contractor without individual licenses Correct answer.
  3. Each employee must individually hold a residential builder license
  4. Employees must register with the county before starting work

Explanation

The license attaches to the contractor entity and its qualifying individual, and employees work under that license. Individual employees are not separately licensed as residential builders for that work. County registration of employees is not a state licensing requirement.

Question 45Business management, contracts, and Michigan licensing law

A homeowner signs a contract with a Michigan residential builder for a $40,000 addition. Which contract term is required by Michigan's home solicitation and home improvement rules?

  1. A liquidated damages clause set at 10 percent of the contract
  2. A mandatory arbitration clause
  3. A three-day right to cancel when the contract is solicited at the buyer's home Correct answer.
  4. A clause waiving the homeowner's right to inspect the work

Explanation

Michigan's home solicitation sales act gives buyers a three-business-day cancellation right for contracts solicited at the buyer's residence. The notice of cancellation must be provided with the contract. Arbitration, liquidated damages, and inspection waivers are not mandatory terms.

Question 46Business management, contracts, and Michigan licensing law

A general contractor is negotiating a contract for a large renovation. Which document generally takes precedence when the contract and the drawings conflict?

  1. The contractor's bid proposal
  2. The contract's order-of-precedence clause Correct answer.
  3. The drawings, because they are the technical basis of the work
  4. The most recently dated document, regardless of type

Explanation

Construction contracts typically include an order-of-precedence clause that resolves conflicts among contract documents. Absent such a clause, the issue is disputed, so the clause controls. Neither recency nor the bid proposal automatically governs.

Question 47Business management, contracts, and Michigan licensing law

In a stipulated-sum contract, the contractor agrees to build a project for a fixed price. Which risk does the contractor primarily bear?

  1. The risk that the owner occupies the building early
  2. The risk of cost overruns from material price increases Correct answer.
  3. The risk that the architect issues a design change
  4. The risk that the owner fails to obtain financing

Explanation

Under a stipulated-sum arrangement the contractor commits to a fixed price and absorbs cost increases unless the contract provides for escalation. Owner financing and design changes are typically handled through separate contract mechanisms. Early occupancy risk is addressed by insurance and contract provisions, not by the pricing structure.

Question 48Business management, contracts, and Michigan licensing law

A contractor signs a cost-plus-fee contract with a guaranteed maximum price (GMP). What happens if actual costs exceed the GMP without an approved change order?

  1. The owner must pay all costs above the GMP
  2. The contractor absorbs the excess cost Correct answer.
  3. The contract is void and must be rebid
  4. The GMP automatically increases by 10 percent

Explanation

A GMP caps the owner's cost exposure, so the contractor generally absorbs overruns unless a change order or shared-savings clause adjusts the cap. The owner does not automatically pay above the cap. The contract does not become void.

Question 49Business management, contracts, and Michigan licensing law

A Michigan contractor wants to enforce a mechanic's lien for unpaid work on a residential project. Which step is generally required to preserve lien rights?

  1. Recording a notice of lien within the statutory period after providing labor or materials Correct answer.
  2. Recording the lien before the first day of work
  3. Obtaining the owner's written consent to the lien before starting work
  4. Filing a lawsuit within 30 days of the last day of work

Explanation

Michigan's construction lien act requires a lien claimant to record a claim of lien within the statutory period measured from the last furnishing of labor or materials. Enforcement then requires a timely lawsuit. Owner consent is not a prerequisite to recording a lien.

Question 50Business management, contracts, and Michigan licensing law

A subcontractor on a Michigan project wants to protect its lien rights against a residential owner. Which notice is commonly required early in the project?

  1. A notice of substantial completion
  2. A notice of furnishing served on the owner and general contractor Correct answer.
  3. A certificate of occupancy
  4. A notice of intent to occupy

Explanation

Michigan's construction lien act uses a notice of furnishing to alert the owner and general contractor that a subcontractor or supplier is providing labor or materials. Serving it within the statutory window preserves lien rights. Certificates of occupancy and substantial completion notices serve different purposes.