Which Michigan state agency is responsible for licensing and regulating contractors?
Correct Answer
A) LARA (Licensing and Regulatory Affairs)
LARA (Licensing and Regulatory Affairs) is the Michigan state agency responsible for licensing and regulating contractors under Act 299.
Why This Is the Correct Answer
LARA — the Department of Licensing and Regulatory Affairs — is the Michigan state agency that oversees contractor licensing under Act 299. LARA houses the Bureau of Construction Codes (BCC) and the Residential Builders' and Maintenance and Alteration Contractors' Board, which administer the licensing, examination, and discipline of Michigan contractors.
Why the Other Options Are Wrong
Option B: Michigan Department of Commerce
The Michigan Department of Commerce no longer exists as a standalone agency — its functions were reorganized into other departments. Even when it existed, contractor licensing fell under a different bureau. This is a historically outdated and incorrect answer.
Option C: Michigan Department of Labor
The Michigan Department of Labor handles workplace safety and wage/hour issues through MIOSHA and related bureaus, but it does not license contractors. It is a common distractor because labor regulation and contractor regulation sound related.
Option D: Michigan Construction Board
There is no state agency called the 'Michigan Construction Board.' This is a fabricated name designed to sound plausible. The actual board within LARA is the Residential Builders' and Maintenance and Alteration Contractors' Board.
Memory Technique
LARA = 'Licenses All Regulated Activities.' In Michigan, if you need a professional license — contractor, nurse, engineer, real estate agent — LARA is your agency. Think of LARA as Michigan's one-stop shop for occupational licensing.
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 Michigan contractor completes $180,000 worth of work in a calendar year. What is the required workers' compensation insurance premium if the rate is 8.5% of payroll and payroll represents 35% of the contract value?
Next Question
Under Michigan Act 299, what is the minimum experience requirement for a residential builder license?