Under Michigan Act 299, a residential builder's license must be renewed every:
Correct Answer
A) 3 years
Michigan Act 299 requires residential builder licenses to be renewed every 3 years.
Why This Is the Correct Answer
Michigan Act 299 (Occupational Code) sets the residential builder license renewal cycle at 3 years. This longer cycle is intentional — it reduces administrative burden while still ensuring periodic review of licensee standing, insurance compliance, and continuing education.
Why the Other Options Are Wrong
Option B: 2 years
2 years is a common renewal period for many professional licenses in other states, but Michigan Act 299 specifically establishes a 3-year cycle for residential builders — not 2 years.
Option C: 1 year
Annual (1-year) renewal is typical for some contractor license types in other states, but Michigan's residential builder license operates on a 3-year renewal cycle under Act 299.
Option D: 5 years
5 years would be an unusually long renewal period. No standard Michigan contractor license category uses a 5-year cycle; this option is a distractor designed to test whether you know the exact statutory interval.
Memory Technique
Think of a 3-year presidential election cycle — not quite president, but a Michigan residential builder renews on a 3-year rhythm. 'Three years to build, three years to renew.'
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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?