According to Michigan Act 299, what is the minimum experience requirement for obtaining a residential builder license?
Correct Answer
D) 4 years
Michigan Act 299 requires a minimum of 4 years of verifiable experience in residential construction to obtain a residential builder license.
Why This Is the Correct Answer
Michigan Act 299 (the Michigan Occupational Code) requires exactly 4 years of verifiable experience in residential construction before a residential builder license can be issued. This requirement ensures licensees have substantive hands-on knowledge of the trade.
Why the Other Options Are Wrong
Option A: 2 years
2 years is insufficient under Act 299. While some states use a 2-year threshold, Michigan sets a higher bar of 4 years to protect consumers from under-experienced builders.
Option B: 3 years
3 years falls short of the statutory requirement. It is a plausible distractor but does not match the language of Act 299.
Option C: 5 years
5 years exceeds the minimum requirement. Michigan requires 4 years — not 5. Selecting an amount above the actual requirement is just as wrong as selecting one below it.
Memory Technique
Associate Michigan → 4 Great Lakes bordering the state (Superior, Michigan, Huron, Erie) → 4 years of experience required. It is a neat mnemonic: four lakes, four years.
More Michigan Questions
A Michigan contractor forms an S-Corporation. What is the maximum number of shareholders allowed?
A contractor's employee is injured on a job site in Michigan. The contractor's workers' compensation insurance has a $500 deductible per claim. The total medical costs are $12,500 and lost wages are $3,200. What is the contractor's out-of-pocket cost for this claim?
What is the minimum general liability insurance coverage amount required for Michigan residential builders?
Under Michigan Act 299, what is the consequence for a contractor who performs work outside the scope of their license classification?
A contractor discovers that a subcontractor has filed a construction lien against their project. The general contractor believes the lien is invalid. What is the primary legal mechanism to challenge the lien in Michigan?
Under Michigan Act 299, what happens if a contractor continues to work without a valid license after it expires?
Which of the following best describes the 'pay when paid' clause limitation under Michigan law?
A project has total costs of $180,000 including $75,000 labor and $105,000 materials. With workers compensation at 7.8% of labor costs and general liability at 0.4% of total costs, what are the combined insurance costs?
A Michigan contractor is forming an LLC. What is the minimum general liability insurance coverage required for residential builders under Michigan law?
Under Michigan Act 299, a contractor's license must be renewed every:
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A contractor's workers' comp policy shows a $500,000 payroll with an experience modification factor of 1.15 and base rate of $12.50 per $100 of payroll. What is the annual premium?
Next Question
A contractor files for an LLC in Michigan. What is the required filing fee with the Michigan Department of Licensing and Regulatory Affairs?
