Michigan Builders License Exam Study Guide: Questions and Answers, Exams of Construction

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Michigan Builders License Exam Study

Guide questions with correct answers

What is the first offense penalty for engaging in the practice of residential building without a license? - CORRECT ANSWER-✔✔✅Not less than $5,000 and not more than $25,000 and/or one year in prison. Subsequent violations can extend the prison time to up to 2 years. What is the penalty for engaging in the practice of residential builders license, resulting in a death? - CORRECT ANSWER-✔✔✅Not less than $5,000 and not more than $25,000 and/or four years in prison On your individual builder's license application, what should you write as your "business address"? - CORRECT ANSWER-✔✔✅Your personal address What is the cost for the individual builder's license? - CORRECT ANSWER-✔✔✅$ After receiving your residential builder's license, what are the only trades not covered by your license? - CORRECT ANSWER-✔✔✅Plumbing, electrical, and HVAC Who is the TESTING company for the State of Michigan? - CORRECT ANSWER-✔✔✅PSI What is the name of the department that regulates your license? - CORRECT ANSWER-✔✔✅LARA What are the 2 parts of the Residential Builder Examination? - CORRECT ANSWER-✔✔✅Business and Law examination/Practice and Trade examination What is a good quick asset ratio? - CORRECT ANSWER-✔✔✅1 to 1 Under the Carpentry section of the test, what does a "span table" tell us? - CORRECT ANSWER- ✔✔✅What species and what grade of lumber a floor joist has to be to span a certain distance Which is NOT a reason that you need a residential business license?

It allows you to be able to file a lein on property It allows you to pull a residential permit It allows you to file a lawsuit if necessary It allows you to work on commercial properties - CORRECT ANSWER-✔✔✅It allows you to work on commercial properties Where does most fraud occur? - CORRECT ANSWER-✔✔✅In the residential market As a builder, your license falls under the regulation of: - CORRECT ANSWER-✔✔✅Both rules by the director and board as well as laws of the state of Michigan What is the make up of the 9 members of the board? - CORRECT ANSWER-✔✔✅4 residential builders, 2 M + A contractors, and 3 members of the general public Under the definition of occupational code, what does the word "limitation" refer to? - CORRECT ANSWER-✔✔✅A condition, stricture, restraint or probation attached to a license relative to the scope of practice Who, upon completion of a hearing, shall assess a penalty or penalties? - CORRECT ANSWER-✔✔✅The Board If you fail to renew your license or registration on or before the expiration date, how many days do you have to resubmit with the proper payment and late fee? - CORRECT ANSWER-✔✔✅60 days When the department is investigating a complaint and finds evidence of a violation, what actions can be brought against the respondent? - CORRECT ANSWER-✔✔✅A cease and desist order, a formal complaint, and/or a citation How many days after the administrative law hearings examiner hears the report, must a determination of penalties be made by the board? - CORRECT ANSWER-✔✔✅60 days What is a compliance conference? - CORRECT ANSWER-✔✔✅A meeting where ONLY the respondent meets with the department to discuss the complaint against them

The department shall conduct a review upon notice that a licensee has violated the asbestos abatement contractors licensing act. What are the possible consequences for for this violation? - CORRECT ANSWER-✔✔✅The department may suspend or revoke that person's license and fines may be issued When the board issues the findings of a verified complaint: - CORRECT ANSWER-✔✔✅- The department shall post on its website any final order of the board and the date it was issued

• The posting shall occur within 30 days after the final order is issued
• The department shall annually post on its website the number of final orders to the board According to the Administrative Rules, an application for a license shall include: - CORRECT ANSWER- ✔✔✅- The residence address of all individuals, partners, officers and/or members, as requested by the department
• The address of the principal place of business in Michigan Upon final order of license suspension or revocation, the licensee shall surrender the license to the department within how many days of the date of suspension or revocation? - CORRECT ANSWER- ✔✔✅10 days According to Administrative rules, a licensee shall include the following in all advertising: - CORRECT ANSWER-✔✔✅- The name on the license
• The license number
• The actual business address as shown on the license According to purchase and sale agreements, the builder or contractor shall make certain that the written agreements clearly state the terms of the transaction, including: - CORRECT ANSWER-✔✔✅- Specifications and cost
• The type and quality of materials
• The type and amount of work to be done The department, after investigation, may request a licensee to appear at such _________ as is necessary to determine whether there is cause for complaint which would require a hearing on, or dismissal of, the complaint. - CORRECT ANSWER-✔✔✅Investigative conference

A respondent in a complaint may be represented by: - CORRECT ANSWER-✔✔✅An attorney or his/her own self What act was created to collect fees for the regulation of certain occupations and professions, and for certain agencies and businesses; to create certain funds; and to prescribe certain powers and duties of certain state agencies and departments? - CORRECT ANSWER-✔✔✅State License Fee Act What is the "Occupational License For Former Offenders Act"? - CORRECT ANSWER-✔✔✅An act to encourage and contribute to the rehabilitation of former offenders and to assist them in the assumption of the responsibilities of citizenship According to the "Building Contract Fund", evidence of "intent to defraud" is defined as: - CORRECT ANSWER-✔✔✅When a contractor, or any subcontractor, appropriates moneys to his/her self for building operations BEFORE the payment by him of all moneys due or so to become due laborers, subcontractors, materialmen or others entitled to payment According to the Construction Lien Act, what must be supplied by owner, General Contractor, Sub- Contractor, or Supplier within 10 days of being asked for a copy by anyone entitled to a copy? - CORRECT ANSWER-✔✔✅Notice of commencement The "Claim of Lien" must be filed within how many days of LAST furnishing labor or materials for a project? - CORRECT ANSWER-✔✔✅90 days Proceedings to foreclose must take place within ____ of the date that the claim lien was recorded. - CORRECT ANSWER-✔✔✅1 year According to the Construction Lien Act, what recommendations are given for your protection? - CORRECT ANSWER-✔✔✅- Never use your assets to complete someone's project

• Get sufficient down payments and/or obtain sufficient progress payments as the job progresses
• Have well defined contracts which include rights and responsibilities of binding parties Which document lists each subcontractor, supplier and laborer, for whom payment of wages or fringe benefits and withholdings is due but unpaid, with whom the (contractor)(subcontractor) has

• An employer shall not discriminate based on sex when paying employees for the same work requirement Who is covered by the Employing Minors Youth Employment Standards Act? - CORRECT ANSWER- ✔✔✅Ages 14, 15, 16, and 17 The Family Medical Leave Act states: - CORRECT 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 employers with 50 or more employees engaged in commerce or affecting commerce Which of the following is true in regard to employing minors? - CORRECT ANSWER-✔✔✅- A minor shall not work more than 6 days a week
• Every 5 hours of work requires a 30 minute break What is a disadvantage of a sole proprietorship? - CORRECT ANSWER-✔✔✅Owner is liable for all debts What is a disadvantage of a general partnership? - CORRECT 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 to how the partnership is operated? - CORRECT ANSWER-✔✔✅Limited partnership What is it called when several business members come together to form a new business entity larger and financially stronger than if they acted alone? - CORRECT ANSWER-✔✔✅Joint Venture How many days after notification of a complaint does the respondent have to respond? - CORRECT ANSWER-✔✔✅15 days Once the investigative unit receives a complaint, who do they verify the legitimacy of the complaint with? - CORRECT 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? - CORRECT ANSWER-✔✔✅The administrative law hearing examiner (also known as hearing officer/presiding officer) The findings/penalty of the Administrative Law Hearing Examiner are reported to: - CORRECT ANSWER- ✔✔✅- The respondent and claiment

• The board
• The investigative unit In reference of the lien law, what is the FIRST document that has to be filled out to continue the lien process? - CORRECT ANSWER-✔✔✅The notice of commencement Homes built prior to what year require at least 1 smoke detector? - CORRECT ANSWER-✔✔✅ 1974 What STATE law regulates discrimination on the jobsite? - CORRECT ANSWER-✔✔✅The Elliott-Larsen Civil Rights Act A contract is not required if the job is under: - CORRECT ANSWER-✔✔✅$1, Within how many days of being on the jobsite must the I9 form be completed? - CORRECT ANSWER- ✔✔✅3 days What act requires prevailing wages to be paid out? - CORRECT ANSWER-✔✔✅The Davis-Bacon Act What is the most common type of contract used in residential construction? - CORRECT ANSWER- ✔✔✅Lump sum contract What should you be sure to include in your contracts? - CORRECT ANSWER-✔✔✅- Change orders
• Weather/ground conditions
• Buried debris

• Check off list from mechanical contractors With a permit, when should final payment be due? - CORRECT 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: - CORRECT ANSWER-✔✔✅The owner only On new construction sites what are you required to have for everyone onsite? - CORRECT ANSWER- ✔✔✅Toilet facilities In regard to moving personal items, it is best if: - CORRECT ANSWER-✔✔✅- You do not move them
• You give written notice to neighbors if work will include any major vibrations that could cause items to fall While on the jobsite, when is it important to take pictures and keep photo records? - CORRECT ANSWER-✔✔✅- Before work begins
• After work completion
• At various stages during the work What things should be included in a log book? - CORRECT ANSWER-✔✔✅- Weather conditions
• What subcontractors are onsite
• Various levels of progress/times As a general contractor, what must you always have onsite? - CORRECT ANSWER-✔✔✅A competent employee with a first aid card Who is responsible for temporary power? - CORRECT ANSWER-✔✔✅Whoever is stated in the contract According to the sample contract on page 27, when is full payment of a change order due? - CORRECT ANSWER-✔✔✅Upon agreement and signing of the change order

What should a quality contract contain? - CORRECT ANSWER-✔✔✅- Name and location of the project

• Drawings and specifications identified as "Project Number"
• Insurance requirements for owner and contractor In order to protect yourself from potentially costly changes, what should you include in any contract to build a new house? - CORRECT ANSWER-✔✔✅"Per project number, last revised on" then list specific page numbers and revision dates What is a verbal direction from an architect or designer to change something called? - CORRECT ANSWER-✔✔✅A modification Ownership of drawings must be: - CORRECT ANSWER-✔✔✅Defined Who is responsible for corrections to completed work according to the subcontract? - CORRECT ANSWER-✔✔✅The subcontractor responsible for the correction (whoever installed it protects it) When can the builder substitute materials? - CORRECT ANSWER-✔✔✅Only with the permission of the owner The cost of moving equipment on and off the jobsite is called: - CORRECT ANSWER-✔✔✅Mobilization costs Whatever contract you decide to use should be reviewed by: - CORRECT ANSWER-✔✔✅An attorney Who is responsible for collecting and maintaining safety data sheets on the jobsite? - CORRECT ANSWER-✔✔✅The general contractor Any code related penalties that are caused for the general contractor are the responsibility of: - CORRECT ANSWER-✔✔✅The subcontractor Which of the following is NOT a responsibility of the subcontractor?

Which of the following statements about lead exposure are true? - CORRECT ANSWER-✔✔✅- Lead stays in the blood stream for approximately 30 days

• Lead stays in soft organs for 6 to 8 months What current techniques are there to identify lead paint? - CORRECT ANSWER-✔✔✅- X-ray fluorescence
• Laboratory analysis
• 3rd party inspections (risk assessment) What are the controls for lead based paint? - CORRECT ANSWER-✔✔✅- Removal of LBP through safe work practices
• Enclosure/encapsulation Contractors are not required to be "certified renovators" if they do the following: - CORRECT ANSWER- ✔✔✅- Demolition of unoccupied structures
• MIOSHA Part 603 Rules are still applicable Lead dust breathed in by adults can create disorders, including: - CORRECT ANSWER-✔✔✅Kidney and brain damage What is a colorless, odorless, radioactive gas that is caused naturally in the soil but can seep out? - CORRECT ANSWER-✔✔✅Radon The EPA has set a "Take Action Level" for radon at: - CORRECT ANSWER-✔✔✅4 PCI/L Radon is the second leading cause of ________. There are 21,000 related deaths in the U.S. each year. - CORRECT ANSWER-✔✔✅Lung cancer Up until the ______, asbestos was commonly used in many building materials - CORRECT ANSWER- ✔✔✅1980s

To protect yourself from asbestos during renovations or demolition, what is the most important thing you can do? - CORRECT ANSWER-✔✔✅Have the house surveyed by a qualified asbestos professional Asbestos containing material (ACM) means any material containing more than _____ asbestos - CORRECT ANSWER-✔✔✅1% One who is capable of identifying existing asbestos hazards in the workplace and selecting the appropriate control strategy for asbestos exposure, who has the authority to take prompt corrective measures to eliminate them is called: - CORRECT ANSWER-✔✔✅The competent person Common products that might have contained asbestos in the past, and conditions which may release fibers, include: - CORRECT ANSWER-✔✔✅- Steam pipes, boilers and furnace ducts

• Resilient floor tiles
• Soundproofing or decorative material sprayed on walls and ceilings What type of common household products could possibly contain asbestos? - CORRECT ANSWER-✔✔✅- Hairdryers
• Stove top pads
• Fireproof gloves Houses built between what years may have asbestos as insulation? - CORRECT ANSWER-✔✔✅1930 and 1950 According to Silica Standards, if using a hand held power saw indoors for any amount of time, what safety precautions must be taken? - CORRECT ANSWER-✔✔✅Required respiratory protection must be worn at a minimum of APF 10 The Silica Standards for handheld power saws for cutting fiber-cement board (with blade diameter of 8 inches or less) for tasks performed outdoors state: - CORRECT ANSWER-✔✔✅- To use saw equipped with commercially available dust collection system
• You must operate and maintain the tool in accordance with manufacturer's instructions to minimize dust emissions

What type of insurance provides added risk protection to an employer who has an employee injured or killed in a related construction accident? This is over and above the worker's compensation insurance. - CORRECT ANSWER-✔✔✅Employer's liability insurance Who has the obligation to ask for and receive copies of all required insurance policies from the subcontractors insurance provider? - CORRECT ANSWER-✔✔✅The general contractor What are key ideas to developing a marketing plan essential for a company's growth? - CORRECT ANSWER-✔✔✅- determine your personal strengths and weaknesses and those of your business

• provide a method of establishing trust in the company for both clients and employees
• provide a portion of resources to promote your plan How can you promote the name of your company with the public? - CORRECT ANSWER-✔✔✅- jobsite signs
• vehicle signage
• brochures and mailers What type of bond guarantees that the contractor will complete the contracted project for the estimate sum? This bond is usually for 100% of the contract sum. Should the contractor default then the bonding company will provide for completion of the project. - CORRECT ANSWER-✔✔✅Performance bond How do you establish trust with a client? - CORRECT ANSWER-✔✔✅By doing what you say you will do How do you establish trust with your employees? - CORRECT ANSWER-✔✔✅- ask for input
• pay them on time
• value their feedback What are the resources you have to promote your business? - CORRECT ANSWER-✔✔✅Time and money How do you take time to promote your business? - CORRECT ANSWER-✔✔✅- attend community events
• give out items with the company name

• join associations In what ways can you monitor previous clients? - CORRECT ANSWER-✔✔✅- call backs
• promotions
• mailers A good business card should: - CORRECT ANSWER-✔✔✅Be readable for all ages and include a website A quality company brochure should stress your company's: - CORRECT ANSWER-✔✔✅Professionalism and integrity A professional presentation folder should include: - CORRECT ANSWER-✔✔✅- pictures of work you have completed
• an eye-catching design
• information about your company Get involved with public affairs through: - CORRECT ANSWER-✔✔✅- chambers of commerce
• trade shows/seminars
• other community events _______ is a key element in any business. The use of consultants, trade organizations, and continuing education courses can aid in reaching your intended goals - CORRECT ANSWER-✔✔✅Marketing Which type of mortar has high compression strength, is very good for below grade use, foundations, sewers, retention walls and maintains strength in severe frost, wind, and soil pressure? - CORRECT ANSWER-✔✔✅Type M Placement of mortar should be done during temperatures between ____ degrees and ____ degrees Fahrenheit. - CORRECT ANSWER-✔✔✅70 / 100

The temperature of concrete should be maintained at ____ degrees for 5 days in cold weather conditions. - CORRECT ANSWER-✔✔✅ 50 Space trusses to within + or - ____ - CORRECT ANSWER-✔✔✅1/4 inch Lateral bracing (long 2x4 12 footers) are supposed to be located in: - CORRECT ANSWER-✔✔✅The upper 1/3 of the truss area What is the act to prescribe and regulate working conditions: to prescribe the duties of employers and employees as to places and conditions of employment? - CORRECT ANSWER-✔✔✅Michigan Occupational Safety and Health Act 154 of 1974 It is the duty of the employer to: - CORRECT ANSWER-✔✔✅Recognize hazards likely to cause death and/or serious harm Who shall administer and enforce the provisions of the Michigan Occupational Safety and Health Act? - CORRECT ANSWER-✔✔✅The Department of Labor (LEO) An employer who willfully or repeatedly violates the Michigan Occupational Safety and Health Act, may be assessed a civil penalty of not more than $_________ for each violation. - CORRECT ANSWER- ✔✔✅$124, An employer shall develop, maintain, and coordinate with employees an accident prevention program, a copy of which shall be available at the worksite and shall include: - CORRECT ANSWER-✔✔✅- instruction to each employee who is required to handle or use poisons, toxic materials, caustics, and other harmful substances

• instruction to each employee if known harmful plants, reptiles, animals, or insects are present
• inspections of the construction site, tools, materials, and equipment to assure that unsafe conditions which could create a hazard are eliminated An employer shall not permit any of the following: - CORRECT ANSWER-✔✔✅- the use of damaged or defective machinery, tools, materials, or equipment that could create a hazard
• the operation of machinery, equipment, and special tools, except by a qualified employee

• knowingly permit an employee to work while under the influence of intoxicating beverages or substances which could impair the employee's ability to perform a task in a safe manner A supply of ______ shall be available to employees in all places of employment - CORRECT ANSWER- ✔✔✅Potable water The top guardrail must be located at a height of ______ from the walking/working surface - CORRECT ANSWER-✔✔✅42" +/- 3" Certification of head protection requires: - CORRECT ANSWER-✔✔✅A class A, B, C helmet What is a device that makes instantaneous forced-entry fastenings into construction materials through the use of a fastener and an explosive load? - CORRECT ANSWER-✔✔✅Powder-actuated tool What is a narrow strip of wood or other soft material which has a notch or sharp point on one end and which is used to push material through the point of operation of a cutting tool? - CORRECT ANSWER- ✔✔✅Push stick Air pressure at the discharge end of a portable air gun or hose used for cleaning shall not exceed ____ pounds per square inch (psi) - CORRECT ANSWER-✔✔✅ 30 What type of a fire is fueled by wood, cloth, paper, rubber and plastics? - CORRECT ANSWER-✔✔✅Class A fire Each employee on a walking/working surface with an unprotected side or edge which is 6 feet or more above a lower level shall be protected from falling by the use of either: - CORRECT ANSWER-✔✔✅- guardrail systems
• safety net systems
• a personal fall arrest system Personal fall arrest systems, when stopping a fall, shall: - CORRECT ANSWER-✔✔✅- limit maximum arresting force on an employee to 1800 LBS when used with a body harness
• be rigged such that an employee can neither free fall more than 6 feet, nor contact any lower level