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An overview of various regulations and laws related to the construction industry in michigan. It covers topics such as the michigan act 230, which creates the commission and regulates code and inspections in the state, penalties for intentionally defrauding employees or customers, license renewal and suspension processes, construction contract types, labor laws, and more. The document aims to educate construction professionals and stakeholders on the legal and regulatory framework governing the industry in michigan.
Typology: Exams
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Verification Form I-9 must be completed by applicants providing proof of identity and employment eligibility within ______ of employment. - Correct 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? - Correct Answer-Sole Proprietorship A ______is a joint co-owner partnership established to specifically increase bonding and bidding capacities and profits. - Correct Answer-General Proprietorship Provisions of the Americans with Disabilities (ADA) Law apply to employers having _____ employees. - Correct 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? - Correct Answer-Davis Bacon Which of the following are fringe benefits that supplement an employee's hourly wage? - Correct 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. - Correct Answer-Lien release What is the Michigan Act 230? - Correct 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? - Correct Answer-Manufactured home What is the purpose of the subcontractor completing a Sworn Statement? - Correct Answer-To get paid by the contractor What is the purpose of a Partial Unconditional Waiver? - Correct 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. - Correct Answer-90 days
What is the penalty to contractors or subcontractors for intentionally trying to defraud employees or a customer? - Correct 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. - Correct 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 ________. - Correct 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 ____. - Correct Answer-is a fine no less that $5,000 or greater than $25, Upon final order of license suspension or revocation, the licensee has _____ in which to surrender their license to the Department. - Correct Answer-10 days Failing to renew one's license before the deadline will result in a _____. - Correct Answer-$20 late fee How long does the homeowner/business have to file a complaint after the project is completed? - Correct Answer-18 months What aids and protects the contractor from accusations of project abandonment without a good legal excuse? - Correct Answer-The arbitration clause To avoid being fined, the contractor must notify the Department within _____ of relocating their business or changing the business' name. - Correct 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. - Correct Answer-Licensed Residential Builder When can a subcontractor work without being licensed? - Correct 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 _______. - Correct Answer-When the repairs are structural in nature A complaint is _______ when it cannot be resolved at the informal investigative hearing.
How long does the Respondent have to appeal the "Final Order" decision? - Correct Answer-30 days Who appoints the Director of the Department? - Correct Answer-The Governor with consent of the Senate How long does the Board serve? - Correct Answer-4 yrs A Builder's incompetence refers to _________. - Correct Answer-failure to conform to minimum accepted professional standards What required bond is a percentage of the project cost put up by the builder to ensure the homeowner or business the project will eventually be completed? - Correct Answer- Performance Bond What is the biggest environmental/human concern created during masonry construction? - Correct Answer-Silicon dust What is the layer of flashing installed over base flashing called? - Correct Answer- Counter Flashing Who pays for planned or unforeseen changes made to the contract scope of work? - Correct Answer-Whomever is specified in the contract How much retainage may be held? - Correct Answer-Whatever is specified in the contract What determines your working capital? - Correct Answer-Assets - Liabilities How long does the contractor have to complete both sections of the licensing exam? - Correct Answer-1 year from stamped date on license application Why is it unwise to do business as a sole proprietorship? - Correct Answer-The risk of losing all personal assets if the project goes wrong Two contractors that combine their commercial resources form a ______. - Correct Answer-joint venture Who regulates the building profession, including the work and licensing? - Correct Answer-The Department of Licensing and Regulatory Affairs Why is a builder's license required to perform residential work and not for commercial building? - Correct Answer-There is more fraud in residential building What does a builder's license qualify the licensed builder to do? - Correct Answer-Build all of the home except for mechanical features
Which type of bond guarantees the contractor will perform the scope of work quoted if they win the bid? - Correct Answer-Bid Bond Which type of bid bond requires the contractor to lose the entire bond to the owner if the contractor backs out? - Correct Answer-Liquidated Damages Which type of bid bond requires the contractor to pay the difference in cost to the next lowest bid if the contractor backs out? - Correct Answer-Difference in Price Which type of bond protects the owner from property liens because the general contractor pays the subcontractors and suppliers? - Correct Answer-Payment Bond How many times a year must the board members meet? - Correct Answer-At least 2 How many board members are there? - Correct Answer- What kind of members does the board consist of? - Correct Answer-4 licensed builders, 2 licensed maintenance and alteration contractors, 1 registered inspector, 2 general public How long is each license cycle? - Correct Answer-3 yrs How much time does the department have to accept receipt of complaint to complainant? - Correct Answer-15 days How much time is allotted to respond to a formal complaint? - Correct Answer-15 days How much time does the board have to determine penalties after an administrative hearing? - Correct Answer-60 days How much time does a person have to request a limitation be removed after such notice? - Correct Answer-30 days How much time does a licensed person have to submit financial records after the board requests them? - Correct Answer-30 days How much time does a licensee have to notify the department of a change in name or address of the person? - Correct Answer-30 days How much time is allotted to a licensee notifying them of an investigative conference? - Correct Answer-10 days How much time is allotted to a residential builder to return sales person's license and for sales person to return I.D. card by certified mail? - Correct Answer-5 days
How much time does a licensee have to repay the construction lien fund in order to avoid suspension of license? - Correct Answer-90 days Who issues subpoenas? - Correct Answer-Circuit court What are the board's duties? - Correct Answer-Interpretation of licensure and aid in an investigation What does the board promulgate? - Correct Answer-rules Who develops the licensing exam? - Correct Answer-The board How long does a person have to renew their license after it expires without having to retake the exam? - Correct Answer-60 days Within how long does a person have to apply for licensing after their license has expired without having to take the exam again? - Correct Answer-3 yrs Which type of document is used for Fast Track projects? - Correct Answer-Letter of Intent Which type of document is predominately used in residential construction that provides a total amount for stated work? - Correct Answer-Lump Sum Contract Which type of document relates to a specific job and includes a breakdown of each unit? - Correct Answer-Unit Price Contract Which type of document is used in Construction Management? - Correct Answer-Cost plus fee contract Which type of document is used when the scope of work is poorly defined? - Correct Answer-Cost plus percentage of cost contract (Time and Materials) What does ADA stand for? - Correct Answer-Americans with Disabilities Act What are the three main points of Act 227: Home Solicitation Sales Act? - Correct Answer-No ID blockers, no false statements, cancellation period of 3 business days Which type of business ownership is easy to establish but the owner is liable for all debts? - Correct Answer-Sole Proprietorship In which type of business ownership do two or more parties merge assets, credit, equipment, and talent but both partners are liable for business debts of the other? - Correct Answer-General Proprietorship
Which type of business ownership allows and individual to invest in a general partnership but have no input to how the partnership is operated? - Correct Answer- Limited Partnership Which type of business ownership is a business type where-by one or more individuals unite to form one entity? - Correct Answer-Corporation Which type of business ownership has the benefits of being taxed as a partnership and meets IRS requirements? - Correct Answer-S-Corporation Which type of business ownership has less legal requirements and more tax and economic benefits? - Correct Answer-Limited Liability Company (LLC) Which dates should you avoid guaranteeing? - Correct Answer-Completion date Which form is required to be completed within the first 3 days of employment? - Correct Answer-I- What is the minimum wage? - Correct Answer-$8.50/hr What is minimum training wage? - Correct Answer-$4.25/hr How long is the training minimum wage valid for? - Correct Answer-90 days Which Act prohibits an employer from discriminating against an individual compensation or other conditions because of religion, race, color, etc..? - Correct Answer-Elliot-Larsen Civil Rights Act 453 What kind of contract is based on estimated costs plus percentages for overhead, time, and materials? - Correct Answer-Cost plus fee What instrument helps ensure the punch list and project are satisfactorily completed? - Correct Answer-Retainage When is final payment due? - Correct Answer-Upon final inspection Which Law prohibits discrimination based on race, color, religion, sex, etc.? - Correct Answer-Federal Civil Rights Act 1964 Which law expanded the coverage of the Civil Rights Act to include affirmative action and court ordered restraining orders? - Correct Answer-Equal Employment Opportunity Act 1972 Which law allows employees unpaid leave for certain reasons? - Correct Answer-The Family Medical Leave Act
How many employees does an employers have to have in order for the Family Medical Leave Act to pertain to them? - Correct Answer- Which law provides a schedule for payment of wages and fringe benefits to employees?
Which type of document indicates a receipt for partial payment of a stated contract in which the work is on-going? - Correct Answer-Partial unconditional waiver Which type of document provides a list of individuals who have provided labor and/or materials to a project who are owed money? - Correct Answer-Sworn Statement Which type of document helps to establish lien rights? - Correct Answer-Proof of Service of Notice of Furnishing Which type of document provides proof that a laborer/supplier has provided labor or materials to a project? - Correct Answer-Notice of Furnishing What kind of property can a lien be placed on? - Correct Answer-Residential and Commercial Who provides buidlers' risk insurance? - Correct Answer-The Homeowner A _____ is the best modern-day log or record of what happens on the jobsite. - Correct Answer-photo Who is generally responsible for temporary power? - Correct Answer-The homeowner Which type of insurance protects the construction project and materials from external forces? - Correct Answer-All risk builder's insurance What protects the contractor's office and related equipment? - Correct Answer- Contractor's property insurance What protects the contractor in reference to risks related to non-employee injuries or damages caused by the contractor's or someone else's property? - Correct Answer- Liability Insurance What protects the employing contractor from additional financial damages from a lawsuit by an employee claiming work related injury/illness/fatality? - Correct Answer- Worker's compensation insurance What provides added risk protection to an employer who has an employee injured/killed in a related construction accident? - Correct Answer-Employer's liability insurance What assures a purchaser that the tile to the property is vested in that purchaser? - Correct Answer-Title Insurance How long does it take for driveway concrete to reach 75% of its strength? - Correct Answer-28 days
What is the most important element of the contractor's relationship with the owner? - Correct Answer-The contract What must be included in every contract? - Correct Answer-payments, termination, changes What does ADR stand for? - Correct Answer-Alternative Dispute Resolution What are three methods to resolve ADR? - Correct Answer-Mediation, arbitration, facilitation What are the three types of warranties? - Correct Answer-General, equipment, non- obligations What type of warranty covers defects related to installation or materials within the first year after occupancy/ completion? - Correct Answer-General Which type of warranty covers fixtures and equipment installed by the contractor? - Correct Answer-Equipment Which type of warranty is the contractor not responsible for with respect to a construction defect due to an architect's or engineer's design? - Correct Answer-Non- Obligations What payments are made to the contractor during the course of the construction project? - Correct Answer-Progress payments What does PEL stand for? - Correct Answer-permissible exposure limit What is the PEL? - Correct Answer-50ug/m^3/8hr How long does lead stay in the bloodstream? - Correct Answer-30 days How long does lead stay in soft organs? - Correct Answer-6-8 months How long does lead stay in bones and teeth? - Correct Answer-30 yrs How can you control lead based paint? - Correct Answer-Enclosure and encapsulation What does RRP stand for? - Correct Answer-Renovation, repair, and painting You do not have to be a certified renovator to do what if a house has lead based paint?
Dispute resolution may be handled through ______. - Correct Answer-mediation, arbitration, facilitation Contract _____ is a costly dispute resolution method facilitated by a neutral 3rd party. It is binding with no appeal process - Correct Answer-Arbitration Which part of the Occupational Code creates a board of licensed people and general public for every licensing group? - Correct Answer-Act 299 What have you violated if you receive jail time? - Correct Answer-Law What have you violated if you receive a fine? - Correct Answer-Rule What is it called when a contractor continues to work without knowledge of hazardous material? - Correct Answer-Negligence What is it called when a contractor continues to work with knowledge of hazardous material? - Correct Answer-Gross negligence Who issues a Final Order? - Correct Answer-The board What is the document sent by the board to settle a complaint? - Correct Answer-Final Order A garage and pole barn are examples of what type of structure? - Correct Answer- residential A homeowner does not have to pay a non-licensed contractor if the cost is over what dollar amount? - Correct Answer- What is it called to be fair, honest, and open in the licensed area? - Correct Answer- Good moral character What helps prevent lead dust from getting into the air during a maintenance or renovation project? - Correct Answer-HEPA vacuum When was radon exposure discovered in dwellings? - Correct Answer- The risk associated with living in a house with radon gas are equivalent to smoking how many packs of cigarettes a day? - Correct Answer- What is a natural, colorless, odorless, radioactive gas that seeps out of soil? - Correct Answer-radon What is the target level for indoor radon? - Correct Answer-0.4PCI/L
4PCI/L of radon exposure is equivalent to how many cigarettes a day? - Correct Answer- How long after lead exposure do you have to treat it before you become poisoned? - Correct Answer-30 days To retard radon, code requires what to be put on the basement floor prior to pouring the concrete? - Correct Answer-3 1/2" of gravel and visqueen What does ACM stand for? - Correct Answer-Asbestos Contaminated Material What percentage of asbestos needs to be in a material to make it ACM? - Correct Answer-1% What does PACM stand for? - Correct Answer-Presumed Asbestos Contaminated Material What is the 60"x60" impervious plastic bag enclosure that is required to work with ACM and PACM? - Correct Answer-Glovebag Which act provides a system to provide an employee with wage replacement, medical benefits, rehab, and dependent benefits? - Correct Answer-Worker's Disability Compensation Act 317 What are the two choices for compensation? - Correct Answer-Self-Insured, approved provider Which form is used to report injuries? - Correct Answer-form 100 What are the methods for accounting? - Correct Answer-Cash basis, accrual basis Which accounting basis records revenues when they are earned and records expenses when incurred? - Correct Answer-accrual Which accounting basis records revenues when they are received and expenses are recorded when paid? - Correct Answer-cash What is it called when the amounts are owed to suppliers by the business? - Correct Answer-Accounts payable What is the true ownership values? - Correct Answer-equity What is it called when an amount is owed to the business by the customer for services?
What is the most liquid? - Correct Answer-cash What are assets that can be turned into cash within 1 year? - Correct Answer-current assets What are payments of debt within 1 year? - Correct Answer-current liabilities What can be written off to a long term asset? - Correct Answer-Depreciation What is the cost of doing business? - Correct Answer-expenses What are long term assets (land/building/equipment)? - Correct Answer-fixed assets What are payments of debt that exceed 1 year? - Correct Answer-long term liabilities What is the amount owed for land or building? - Correct Answer-mortgage (note payable) What are assets - liabilities? - Correct Answer-working capital What is the amount earned by the business during 1 year? - Correct Answer-revenue How long should business records be kept? - Correct Answer-7 yrs How long should personal records be kept? - Correct Answer-3 yrs What are the two types of helmets? - Correct Answer-Class A, Class B What type of helmet should a worker use for industrial head protection? - Correct Answer-Class A What type of helmet should a worker use when exposed to at least 600 volts? - Correct Answer-Class B What are the five fire classifications? - Correct Answer-Class A, B, C, D, K What kind of fire is fueled by wood, cloth, paper, rubber, or plastics? - Correct Answer- Class A Which kind of fire is fueled by liquids, gases, and greases? - Correct Answer-Class B Which type of fire is fueled by live electrical equipment? - Correct Answer-Class C Which type of fire is fueled by metals? - Correct Answer-Class D Which type of fire is fueled by vegetable/animal oils/fats? - Correct Answer-Class K
What does PASS stand for? - Correct Answer-Pin, Aim, Squeeze, Sweep A worker must have lost _____ of wages before they are eligible to receive wage loss benefits - Correct Answer-1 wk What is the system that provides wage replacement and medical and rehabilitation benefits to employees injured on the job? - Correct Answer-Workers' Compensation Employers must provide _____ workers' compensation material to all new employees. - Correct Answer-Employees - Know Your Rights Employers must provide worker's compensation when they have _____ employees. - Correct Answer-3 or more By complying with the Workers' Compensation Act the employer ________. - Correct Answer-reduces liability from related lawsuits What insurance policies must the subcontractor provide the prime contractor? - Correct Answer-vehicle, liability insurance, workers compensation What is the most important asset of the company? - Correct Answer-The owner It is necessary to ______ in order to develop a successful marketing plan. - Correct Answer-determine strengths and weaknesses, identify target clients, alegate resources The best way to establish trust is to ______. - Correct Answer-Ask for feedback from workers and customers What mortar type has the highest compression strength and is intended for below grade use. - Correct Answer-M Place mortar when temperatures are between _____. - Correct Answer-70-100F The maximum thickness of the mortar bed on the first course should be ______. - Correct Answer-3/4" or less Who should you always have if you have a business? - Correct Answer-Attorney, accountant When are 1099 forms due? - Correct Answer-Jan 31 What are the two types of financial statements? - Correct Answer-Calendar, fiscal Which basis reflects activity from January 1st to December 31st? - Correct Answer- calendar
Which basis reflects activity that does not follow the calendar? - Correct Answer-fiscal What financial statement would seasonal workers use? - Correct Answer-fiscal Which account provides for double entry book keeping? - Correct Answer-T-accounts In double entry book keeping what is recorded on the left side of an account? - Correct Answer-debit In double entry book keeping what is recorded on the right side of an account? - Correct Answer-credit What is called when cash is received? - Correct Answer-debit cash What is it called when cash is paid out? - Correct Answer-credit cash What are books of original entry? - Correct Answer-journals How many journals are there? - Correct Answer- What are the different types of journals? - Correct Answer-Sales, purchase, cash receipt, cash disbursements, general journal Where would records of sales on credit be kept? - Correct Answer-cash journal Where would records of purchases on credit be kept? - Correct Answer-purchases journal Where would incoming cash business transactions be kept? - Correct Answer-cash receipt journal Where would records of outgoing cash be kept? - Correct Answer-cash disbursements journal Where would records of payroll be kept? - Correct Answer-cash disbursements journal Where would records of cash sales be kept? - Correct Answer-cash receipt journal Where would records of adjusting and closing entries be kept? - Correct Answer- general journal Where would records depreciation, equipment loss/damage, or inventory of no value be kept? - Correct Answer-general journal What are books of final entry? - Correct Answer-Ledgers
Where are all transactions from journals recorded? - Correct Answer-in the ledgers What make up general ledgers? - Correct Answer-T-accounts What must be balanced in order for the accounting equation to be in balance? - Correct Answer-ledgers How many financial statements are there? - Correct Answer- What are the financial statements? - Correct Answer-income, owner's equity, balance, cash flow What shows net profit or loss? - Correct Answer-income statement What shows the capital paid in, draws, and investments? - Correct Answer-statement of owner's equity What shows assets, liabilities, and equity? - Correct Answer-balance sheet What shows where the cash went - for bank statements? - Correct Answer-statement of cash flow What is a measure of liquidity to pay current bills? - Correct Answer-Current ratio How do you calculate current ratio? - Correct Answer-Current assets/current liabilities What is a good current ratio? - Correct Answer-2: What indicates the ability to pay current debts? - Correct Answer-quick asset ratio What is a good quick asset ratio? - Correct Answer-1: What is usually used to determine a loan request? - Correct Answer-quick asset ratio Quick asset ratios do not include ______. - Correct Answer-inventory How do you calculate fixed assets-net worth ratio? - Correct Answer-fixed assets/net worth How do you calculate net worth? - Correct Answer-total assets-liabilities How do you calculate gross profit-sales ratio? - Correct Answer-net sales/sales How do you calculate net sales? - Correct Answer-sales-direct sales expenses
What percentage of fixed assets-net worth ratio puts a company at risk for not having enough money for emergencies? - Correct Answer-75% What tells a company they can reduce their sales price by 50% before incurring a loss?
A ______ is a uniform home plan that's accessible online for purchase, that shows the style, layout, and views. - Correct Answer-stock plan The estimator should _______ in order to produce a more accurate cost estimation. - Correct Answer-divide the area into simple sections The most common scale used for residential plan drawings is _____. - Correct Answer- 1/4"=1' A gliding or glide-by window is another name for a _____. - Correct Answer-Horizontal sliding window How many square feet are in an acre? - Correct Answer-43, The ____ lists specifications and items to be installed on the project, such as electrical features, windows, and doors. - Correct Answer-schedule A _____ is based on how long an assembly wall can withstand a fire without burning through. - Correct Answer-fire resistance rating A method of ________ allows the contractor or estimator to insert general placeholder amounts for materials (light fixtures, faucets, etc.), which reduces the amount of time spent putting together a bid. - Correct Answer-allowances What are cost specific to a project? - Correct Answer-direct costs What are overhead costs? - Correct Answer-indirect cost What is used to make sure nothing is forgotten? - Correct Answer-checklist The first load should include materials for completing the house up to the _______. - Correct Answer-subfloor The course of events that need to happen in order to complete a task. - Correct Answer- critical path What must happen before construction on a building? - Correct Answer-survey What must happen after you survey a jobsite? - Correct Answer-pull permits What might you do after you pull permits? - Correct Answer-excavate When is finish flooring finished? - Correct Answer-after painting A _____ helps ensure nothing is left out of the estimate. - Correct Answer-checklist
How long must foundation concrete sure before it can be backfilled? - Correct Answer- 28 days How long is a board member term? - Correct Answer-4yrs How many board members serve at one time? - Correct Answer- How many board members are licensed residential builders? - Correct Answer- How many board members are licensed maintenance and alteration contractors? - Correct Answer- How many board members are licensed inspectors? - Correct Answer- How many board members represent the general public? - Correct Answer- The ____ appoints the director of the board with the consent of the ____. - Correct Answer-Governor, senate The ____ promulgates rules for articles 1-6. - Correct Answer-Department The ____ enforces the rules. - Correct Answer-Board The ____ promulgates rules to set the minimum standards of acceptable practice. - Correct Answer-Board The board meets at least ___ times a year. - Correct Answer- How long do you have to renew your license without having to take the builders exam? - Correct Answer-3yrs How long does the department have to acknowledge the receipt of complaint to complainant? - Correct Answer-15 days How much time is allotted to respond to a formal complaint? - Correct Answer-15 days How much time does the board have to determine penalties after an administrative hearing? - Correct Answer-60 days How much time does a person have to request that a limitation be removed after they receive such notice? - Correct Answer-30 days How long do you have to submit financial records to the board after notification? - Correct Answer-30 days
How long do you have to notify the department of a change in name/address? - Correct Answer-30 days How much time is allotted to a licensed person notifying them of an investigative conference? - Correct Answer-10 days How long do you have to return your sales persons license? - Correct Answer-5 days How long does a salesperson have to return their ID? - Correct Answer-5 days How much time is allotted to repay the construction lien fund in order to avoid a suspension of license? - Correct Answer-90 days How long do you have to file a complaint after the job is completed? - Correct Answer- 18 months How long do you have to notify the department of a change in control/direction of a business? - Correct Answer-10 days Which act was revised to create a board for each licensing occupation? - Correct Answer- Who can file a complaint? - Correct Answer-Anyone Who conducts the investigation of a complaint? - Correct Answer-Department Who issues subpoenas? - Correct Answer-Circuit court