Maryland Home Improvement Contractor (MHIC) Exam — Questions and Answers

Question 1: How long must employers keep OSHA Form 301?

1 year
5 years (Correct answer)
15 days
2 years

Correct answer: 5 years

OSHA regulations require employers to maintain records of work-related injuries and illnesses, including the OSHA Form 301 (Injury and Illness Incident Report). These records must be kept for a period of five years following the end of the calendar year to which they relate. This ensures data is available for inspections, analysis, and tracking workplace safety trends.

Question 2: Under Maryland's Home Improvement Commission (MHIC) regulations, which building code serves as the primary residential construction standard that contractors must follow for new home construction projects?

BOCA National Building Code
International Residential Code (IRC) (Correct answer)
National Building Code (NBC)
Uniform Building Code (UBC)

Correct answer: International Residential Code (IRC)

Maryland has adopted the International Residential Code (IRC) as the primary standard for one- and two-family dwellings and townhouses. MHIC-licensed contractors must be familiar with IRC requirements for structural, electrical, plumbing, and mechanical systems in residential construction.

Question 3: What is the maximum deposit percentage that a Maryland home improvement contractor may legally collect before starting work?

10%
50%
33% (Correct answer)
25%

Correct answer: 33%

Maryland law caps initial deposits at one-third (approximately 33%) of the total contract price.

Question 4: An MHIC contractor completes an 8-hour online course from an out-of-state provider that is approved by another state's home improvement licensing board but has NOT applied for MHIC approval. How should the contractor treat these hours?

The hours qualify if the contractor submits a reciprocity petition to MHIC within 30 days of course completion
The hours do not qualify; only MHIC-approved providers satisfy the Maryland CE requirement (Correct answer)
The hours qualify automatically because the course is approved in at least one U.S. jurisdiction
The hours qualify for up to 4 of the required 8 hours, with the remainder needing an MHIC-approved source

Correct answer: The hours do not qualify; only MHIC-approved providers satisfy the Maryland CE requirement

Maryland MHIC does not recognize reciprocal approval from other states' licensing boards for continuing education purposes. A course provider must be specifically approved by MHIC for the hours to count. Approval by another jurisdiction's board is irrelevant to Maryland compliance.

Question 5: A deck ledger board is being attached to a house that has an exterior rigid foam insulation layer 2 inches thick behind the siding. Which of the following correctly describes the code-compliant fastening approach?

Remove the foam insulation and siding in the ledger attachment zone and attach the ledger directly to the band joist with proper flashing (Correct answer)
Use standard lag screws of sufficient length to account for the foam, fastening through the foam into the band joist
Install a spacer block between the ledger and the house equal in thickness to the foam and fasten through both
Attach the ledger with structural screws into the foam only, since modern rigid foam has adequate compressive strength

Correct answer: Remove the foam insulation and siding in the ledger attachment zone and attach the ledger directly to the band joist with proper flashing

IRC Section R507.9 and associated ledger attachment tables assume direct wood-to-wood contact. Attaching a ledger through compressible foam insulation is not permitted by prescriptive code because the foam can compress over time, reducing fastener clamping force and creating a potentially dangerous connection. The correct approach is to remove the foam in the ledger zone and attach directly to the band joist with proper flashing to maintain the weather barrier. Spacer blocks do not resolve the compressibility issue, and foam alone provides no structural fastening capacity.

Question 6: In platform frame construction, what is the primary structural purpose of the double top plate used at the top of exterior and interior bearing walls?

To increase the fire-resistance rating of the wall assembly
To provide a nailing surface for interior drywall
To tie walls together at intersections and distribute roof/floor loads across multiple studs (Correct answer)
To serve as the primary weather barrier at the wall top

Correct answer: To tie walls together at intersections and distribute roof/floor loads across multiple studs

The double top plate ties wall sections together at corners and intersections, lapping joints to create continuity. It also helps distribute concentrated loads from joists, rafters, or beams above across multiple studs below. It is not a weather barrier, its drywall nailing role is incidental, and it does not significantly improve fire resistance.

Question 7: A contractor is awarded a $90,000 kitchen and addition project. Before breaking ground, the contractor requests a deposit. Under MHIC financial regulations, what is the maximum lawful down payment the contractor may collect at contract signing, assuming no special-order materials are specified?

$27,000 — thirty percent of the total contract price
Any amount agreed to in writing by both parties
$18,000 — twenty percent of the total contract price
$30,000 — one-third of the total contract price (Correct answer)

Correct answer: $30,000 — one-third of the total contract price

Maryland's Home Improvement Law prohibits a contractor from collecting a down payment exceeding one-third (1/3) of the total contract price before work commences. On a $90,000 contract, the maximum lawful deposit is $30,000. Collecting a higher deposit — even if the homeowner agrees in writing — violates MHIC regulations and can result in license suspension and consumer restitution obligations.

Question 8: Which of the following payment practices is prohibited under Maryland Home Improvement Law?

Collecting the full contract amount from the homeowner before any work begins (Correct answer)
Accepting payment by personal check or electronic transfer
Requiring a signed change order before performing additional work
Requesting a draw payment after a defined phase of work is completed

Correct answer: Collecting the full contract amount from the homeowner before any work begins

Collecting the entire contract price before beginning work leaves consumers with no financial protection and is prohibited under Maryland home improvement regulations.

Question 9: A licensed MHIC contractor submits a bid that includes pulling all necessary permits. After winning the contract, the contractor discovers the local jurisdiction requires a homeowner co-signature on the permit application. The homeowner refuses to sign, claiming the contractor should handle everything. Which statement best reflects the contractor's legal and ethical obligations under MHIC standards?

The contractor may proceed without the permit if the homeowner has refused to cooperate, documenting the refusal in writing
The contractor should halt work, explain to the homeowner that proceeding without a required permit violates Maryland law and could jeopardize the contractor's license, and seek resolution (Correct answer)
The contractor must obtain the permit regardless of the homeowner's refusal by representing the homeowner as applicant without their signature
The contractor may begin work and apply for a retroactive permit after project completion to avoid delays

Correct answer: The contractor should halt work, explain to the homeowner that proceeding without a required permit violates Maryland law and could jeopardize the contractor's license, and seek resolution

Under Maryland Home Improvement Law and MHIC regulations, performing work that requires a permit without obtaining one is a violation that can result in license suspension or revocation. A contractor may not forge or misrepresent a homeowner's co-signature, and proceeding without a required permit—even with documented homeowner refusal—still exposes the contractor to disciplinary action. The correct course is to halt work, clearly explain the legal obligation to the homeowner, and work toward a lawful resolution before proceeding.

Question 10: A Maryland home improvement contract for $7,500 includes a 'no cancellation after material delivery' clause. The homeowner attempts to cancel 2 days after signing. Which statement is most accurate under MHIC regulations?

Cancellation is permitted but the homeowner must reimburse the contractor for restocking fees up to 15% of the contract price
The homeowner retains the statutory 3-business-day right of rescission, and the clause is void as against public policy (Correct answer)
The homeowner's right of rescission only applies to contracts solicited at the homeowner's residence, not to contracts signed at the contractor's office
The clause is enforceable because materials have been ordered and the contractor has begun performance

Correct answer: The homeowner retains the statutory 3-business-day right of rescission, and the clause is void as against public policy

Maryland Home Improvement Law mandates a 3-business-day right of rescission for home improvement contracts, mirroring the FTC Cooling-Off Rule. Any contractual clause that purports to waive or limit this right is void and unenforceable under §8-625. The right applies regardless of where the contract was signed or whether materials have been ordered, and no restocking fee can be imposed during this period.

Question 11: During a kitchen remodel, a contractor discovers the existing floor joists are Douglas Fir No. 2, 2×10s, spaced 16" O.C. spanning 14 feet. The homeowner wants to add a 500-lb cast-iron soaking tub. Before proceeding, the contractor's FIRST obligation under MHIC standards is to:

Determine whether the existing framing meets the required live load capacity for the new use (Correct answer)
Notify the homeowner that the project cannot proceed without a structural engineer
Immediately sister the joists with matching lumber before any other work continues
Require the homeowner to obtain a load calculation stamp from the building department

Correct answer: Determine whether the existing framing meets the required live load capacity for the new use

The contractor's first obligation is to assess whether the existing structure can support the new load — not to automatically require engineering or immediately reinforce. A standard residential floor is designed for 40 psf live load; a filled cast-iron tub can exceed this significantly when concentrated. The contractor must evaluate the load and then determine the appropriate course of action (sistering, engineering referral, or confirming adequacy). Jumping directly to sistering without assessment or mandating engineer involvement before any analysis is premature and not the first required step.

Question 12: Which of the following best describes 'home improvement' under Maryland law?

Only new construction of residential properties
Any commercial property renovation
Landscaping and tree trimming services
Any alteration, repair, or improvement to an existing residential structure (Correct answer)

Correct answer: Any alteration, repair, or improvement to an existing residential structure

Under Maryland law, 'home improvement' is defined as an alteration, repair, or improvement to an existing residential structure. New construction and commercial work are excluded.

Question 13: Under Maryland law, what is the minimum age requirement to obtain an MHIC license?

21 years old
25 years old
16 years old
18 years old (Correct answer)

Correct answer: 18 years old

Applicants for an MHIC license must be at least 18 years of age. This is a baseline eligibility requirement under Maryland Home Improvement Law.

Question 14: When installing floor joists using the 'platform framing' method, where is the next story's wall framing erected?

On top of the subfloor deck that covers the floor joists (Correct answer)
On a raised sill plate that spans across the floor joists
On the rim joist attached to the outside of the floor joists
Directly on top of the lower story's wall top plates, before the subfloor is installed

Correct answer: On top of the subfloor deck that covers the floor joists

In platform framing (the dominant modern residential method), each floor level serves as a 'platform' on which the next story's walls are built. The subfloor sheathing is installed across the joists first, creating a flat working surface, then the walls are framed on top of that deck. This is distinct from balloon framing where studs run continuously from foundation to roof.

Question 15: According to the International Residential Code (IRC), what is the minimum required fire separation distance between a newly constructed detached garage and the main dwelling on the same property?

No separation required if the garage is detached (Correct answer)
3 feet
10 feet
5 feet

Correct answer: No separation required if the garage is detached

The IRC does not require a fire-resistance-rated separation between a detached accessory garage and the main dwelling as long as it is truly detached (not connected by a breezeway or shared wall). Fire separation requirements only apply to attached garages, which require 1/2-inch Type X drywall on garage-side walls and ceilings.

Question 16: An MHIC licensee's license expires on September 30. The contractor continues performing home improvement work through October 15 while their renewal application is pending. During this period, a dispute arises with a homeowner. What is the most accurate legal characterization of the contractor's status and the contract's enforceability?

The contractor is operating legally under a 30-day automatic grace period for pending renewals
The contractor is unlicensed during the lapse period; contracts entered into or work performed during that period may be voidable and subject to MHIC penalties (Correct answer)
The contractor is unlicensed for the period after expiration, but the contract remains fully enforceable because the license was valid when the contract was originally signed
The contractor retains full licensee status because a pending renewal application legally extends the prior license

Correct answer: The contractor is unlicensed during the lapse period; contracts entered into or work performed during that period may be voidable and subject to MHIC penalties

An expired license is no license at all — a pending renewal application does not automatically extend the license. Any home improvement work performed or contracts entered into during the lapse period are treated as unlicensed activity under MHIC law. Such contracts may be voidable at the homeowner's option, the contractor is subject to penalties, and claims from that period would not be covered by the MHIC Guaranty Fund.

Question 17: Builder's risk insurance is specifically designed to cover:

Injuries sustained by workers during construction
The contractor's liability for defective workmanship discovered after project completion
Physical damage to the structure and materials while the project is under construction (Correct answer)
Loss of business income if the contractor is unable to work due to illness

Correct answer: Physical damage to the structure and materials while the project is under construction

Builder's risk (also called 'course of construction') insurance covers physical damage to a building and its materials during the active construction period, including losses from fire, wind, theft, or vandalism before the project is complete and handed over to the owner.

Question 18: A homeowner files a claim against the Maryland Home Improvement Guaranty Fund after a contractor abandons a $28,000 project. The fund pays the homeowner $22,000. The contractor later renews their MHIC license. Which of the following is TRUE regarding the fund's subrogation rights?

The fund's subrogation rights expire 12 months after the claim payment date
The fund may pursue the contractor only for the difference between what was paid and the statutory maximum, not the full $22,000
The fund is subrogated to the homeowner's rights and may pursue the contractor for the $22,000 paid, and the contractor's license renewal may be denied until reimbursement is made (Correct answer)
The fund has no further claim against the contractor once payment is made; the homeowner's recourse ends at the fund

Correct answer: The fund is subrogated to the homeowner's rights and may pursue the contractor for the $22,000 paid, and the contractor's license renewal may be denied until reimbursement is made

The Maryland Home Improvement Guaranty Fund is subrogated to the rights of the claimant upon payment. This means the fund can pursue the contractor for the full amount paid. Additionally, Maryland law makes reimbursement to the fund a condition for license reinstatement or renewal—a contractor whose default triggered a fund payment cannot renew until the debt is satisfied. There is no 12-month expiration on these rights.

Question 19: Which document helps a homeowner confirm subcontractors and suppliers have been paid, reducing lien risk?

Lien waiver or release (Correct answer)
Change order
Gantt chart
Material takeoff

Correct answer: Lien waiver or release

A lien waiver shows a sub or supplier has been paid and gives up lien rights for that amount.

Question 20: A homeowner notices that their newly completed renovation has significant defects. What is the FIRST step the homeowner should take to address this under MHIC's process?

Apply for compensation from the Guaranty Fund
Contact the contractor directly in writing to request repairs (Correct answer)
File a lawsuit in circuit court
Immediately file a complaint with MHIC

Correct answer: Contact the contractor directly in writing to request repairs

The homeowner should first contact the contractor in writing to request that defects be corrected. Direct communication is generally the first step before escalating to MHIC or the courts.

Question 21: A homeowner cancels a home improvement contract within the three-day right of rescission period. The contractor had already ordered $1,800 in custom-fabricated materials specifically for this project, which are non-returnable. Under Maryland's Home Improvement Law, what is the contractor legally entitled to recover from the homeowner?

Nothing — the right of rescission is absolute and the contractor bears all pre-cancellation costs (Correct answer)
The full $1,800 for the custom materials, because the homeowner's cancellation caused the loss
A proportional share of overhead costs only, not material costs
Up to 5% of the total contract price as a cancellation fee, provided the contract included such a clause

Correct answer: Nothing — the right of rescission is absolute and the contractor bears all pre-cancellation costs

Maryland's three-day right of rescission under the Home Improvement Law and aligned federal FTC Rule is absolute for contracts solicited at the consumer's home. When a homeowner validly rescinds, the contractor must refund any payments and cannot retain or claim compensation for pre-cancellation expenditures, including custom-ordered materials. The risk of ordering materials before the rescission window closes rests entirely with the contractor.

Question 22: A salesperson for a licensed MHIC contractor visits a homeowner's residence on a Friday evening and closes a $6,000 deck-replacement contract. The homeowner signs and immediately tells the salesperson, 'I'm certain — please start demolition Monday morning.' The contractor begins work Monday as requested. If the homeowner later invokes the right of rescission on Tuesday, what is the legal outcome under Maryland law?

The rescission is valid, but the contractor may retain compensation for the fair market value of work performed prior to receipt of the cancellation notice.
The rescission is invalid because the contractor's license status cures any defect in the timing of commencement once the homeowner gives verbal authorization.
The rescission is invalid because the homeowner's oral instruction to begin work constitutes a knowing waiver of the right to cancel under Maryland's emergency-waiver provision.
The rescission is valid; the homeowner retains the full three-business-day right to cancel a contract solicited at their home, and the contractor's early start creates no offset against the homeowner's refund rights. (Correct answer)

Correct answer: The rescission is valid; the homeowner retains the full three-business-day right to cancel a contract solicited at their home, and the contractor's early start creates no offset against the homeowner's refund rights.

When a home improvement contract is solicited at the consumer's residence, Maryland law (mirroring the FTC Cooling-Off Rule) grants a three-business-day right of rescission. This right cannot be waived by a simple oral instruction to begin early. A valid waiver requires the consumer to sign a separate, dated waiver document describing the specific emergency and expressly requesting immediate performance — a casual 'start Monday' does not satisfy that standard. Because no proper written waiver was executed, the homeowner's Tuesday rescission is effective, and the contractor generally cannot retain compensation for work performed during the uncancelled rescission window.

Question 23: What is the primary purpose of requiring MHIC licensure for home improvement contractors in Maryland?

To restrict competition in the home improvement industry
To generate state revenue through licensing fees
To ensure all contractors join a professional trade association
To protect consumers from unqualified and dishonest contractors (Correct answer)

Correct answer: To protect consumers from unqualified and dishonest contractors

The primary purpose of MHIC licensure is to protect Maryland consumers by ensuring that home improvement contractors meet minimum standards of competence and integrity.

Question 24: When installing a deck attached to a house in Maryland, which document typically governs the ledger board connection requirements?

ANSI A117.1 accessibility standard
OSHA 1926 Subpart Q
IRC Section R507 and local amendments (Correct answer)
NFPA 70 (National Electrical Code)

Correct answer: IRC Section R507 and local amendments

Attached deck construction, including ledger board connections, is governed by IRC Section R507 (Decks) along with any local Maryland amendments. The ledger connection is critical to prevent deck collapse and must meet specific fastener, flashing, and spacing requirements.

Question 25: Which event is generally considered an excusable delay outside the contractor's control?

A crew showing up late
The contractor forgetting to order materials
Unusually severe weather or a government-ordered shutdown (Correct answer)
The contractor taking on too many jobs

Correct answer: Unusually severe weather or a government-ordered shutdown

Excusable delays come from events beyond the contractor's reasonable control, not poor planning.

Question 26: A homeowner signs a home improvement contract on a Monday at the contractor's office. Under Maryland law, how many business days does the homeowner have to cancel (rescind) the contract?

1 business day
3 business days (Correct answer)
5 business days
No right of rescission exists for contracts signed at the contractor's office

Correct answer: 3 business days

Maryland's Home Improvement Act provides homeowners with a 3-business-day right of rescission for home improvement contracts. This applies to contracts solicited at the homeowner's residence; contracts signed at the contractor's office may be subject to different rules, but the 3-day notice of right to cancel is a standard consumer protection requirement.

Question 27: Under the International Residential Code (IRC), what is the minimum required width for a main hallway in a new residential construction?

42 inches
36 inches (Correct answer)
28 inches
32 inches

Correct answer: 36 inches

The IRC requires a minimum hallway width of 36 inches for main corridors in residential construction. This ensures adequate passage space for occupants and emergency egress.

Question 28: A contractor is installing a new bathroom exhaust fan. The duct run is 40 feet long with two 90-degree elbows. The fan is rated for 110 CFM. Under IRC M1507 and typical manufacturer equivalency tables (each 90° elbow = 10 ft equivalent), what is the total equivalent duct length, and does it affect compliance?

50 feet equivalent; this is exactly at the typical limit and is compliant if the fan is rated for the full length
60 feet equivalent; this exceeds typical 50-foot maximum duct length limits and requires either a more powerful fan or a shorter duct route (Correct answer)
40 feet equivalent; elbows are not counted in exhaust duct length calculations
80 feet equivalent; the duct must be insulated to compensate for the increased run length

Correct answer: 60 feet equivalent; this exceeds typical 50-foot maximum duct length limits and requires either a more powerful fan or a shorter duct route

The total equivalent length is 40 feet of straight duct + (2 elbows × 10 ft each) = 60 feet equivalent. IRC Table M1507.4 limits bathroom exhaust duct lengths based on fan CFM and duct diameter. For a 4-inch duct at 50 CFM the limit may be 50 feet, but the calculation must use equivalent lengths including fittings. At 60 feet equivalent, the contractor must either re-route to reduce the run, use a larger diameter duct, or select a fan rated for longer equivalent runs. Ignoring elbow equivalency is a common and code-violating mistake.

Question 29: Long-lead items such as custom windows should be:

Ordered only after drywall is finished
Ordered early so delivery does not delay the critical path (Correct answer)
Ordered after the final inspection
Left off the schedule entirely

Correct answer: Ordered early so delivery does not delay the critical path

Items with long manufacturing times must be ordered early to avoid becoming schedule bottlenecks.

Question 30: A contractor is selecting insulation for an exterior wall cavity in a climate with significant humidity. Which insulation type is most resistant to moisture absorption and will not lose R-value when wet?

Cellulose loose-fill insulation
Fiberglass batt insulation
Closed-cell spray polyurethane foam (SPF) (Correct answer)
Mineral wool batt insulation

Correct answer: Closed-cell spray polyurethane foam (SPF)

Closed-cell spray polyurethane foam has a very low moisture vapor permeability and does not absorb liquid water, maintaining its R-value even in humid conditions. It also acts as an air barrier. Fiberglass batts lose insulating effectiveness when wet, cellulose is hygroscopic and can hold moisture, and mineral wool is more moisture-resistant than fiberglass but still less effective than closed-cell SPF in high-humidity applications.

Question 31: A homeowner's bathroom renovation requires waterproofing behind the tile in a shower surround. Which substrate is most appropriate directly behind ceramic tile in a wet shower area?

Greenboard (moisture-resistant drywall)
OSB (oriented strand board)
Standard drywall (gypsum board)
Cement board (cementitious backer unit) (Correct answer)

Correct answer: Cement board (cementitious backer unit)

Cement board (cementitious backer unit) is the correct substrate for wet areas like shower surrounds because it does not absorb water, will not rot, swell, or degrade when exposed to moisture. Standard drywall and OSB will fail when wet. Greenboard is only moisture-resistant, not waterproof, and is not suitable for direct water exposure in shower applications.

Question 32: A contractor is installing a vapor retarder in a new home's wall assembly in a cold climate (Climate Zone 6). According to best building science practice, where should the vapor retarder be positioned relative to the insulation and wall framing?

Between the exterior sheathing and the exterior cladding
On the interior (warm-in-winter) side of the wall insulation (Correct answer)
In the center of the insulation layer
On the exterior side of the wall sheathing

Correct answer: On the interior (warm-in-winter) side of the wall insulation

In cold climates, the vapor retarder is placed on the warm-in-winter side — the interior face of the insulation (typically behind the drywall). This prevents warm, moist interior air from reaching the cold sheathing where it could condense. Placing it on the exterior side would trap moisture inside the wall cavity during winter.

Question 33: What minimum amount of general liability insurance must an MHIC-licensed contractor maintain?

$25,000
$100,000
$500,000
$50,000 (Correct answer)

Correct answer: $50,000

Maryland requires licensed home improvement contractors to carry at least $50,000 in general liability insurance.

Question 34: Which masonry bond pattern distributes loads most effectively and is REQUIRED for structural brick masonry in most building codes?

Running bond with less than 25% overlap
Running bond with at least 1/4 unit overlap (Correct answer)
Stack bond
Flemish bond for decorative facades only

Correct answer: Running bond with at least 1/4 unit overlap

Running bond with at least one-quarter (25%) unit overlap is the minimum required for structural masonry because it ensures that vertical mortar joints are offset between courses, distributing loads across multiple units and providing interlock that resists horizontal forces. Stack bond has continuous vertical joints and is structurally weak without reinforcement.

Question 35: A contractor replaces windows in a 1968 home during a major renovation. The existing rough openings are being reused without structural modification. The local jurisdiction has adopted the 2021 IRC. Under which specific circumstance would the replacement windows be required to meet current tempered glazing standards, even though the openings are unchanged?

Whenever replacement windows are installed in any home built before the adoption of the first model glazing code
Replacement windows reusing existing rough openings in existing structures are exempt from current glazing safety standards under the IRC's existing building provisions
Only when the replacement window sash area exceeds 9 square feet and the bottom edge is within 18 inches of the floor
When the replacement window is within 24 inches of a door and the bottom of the glazing is within 60 inches of the walking surface (Correct answer)

Correct answer: When the replacement window is within 24 inches of a door and the bottom of the glazing is within 60 inches of the walking surface

IRC Section R308.4 defines hazardous locations where safety glazing is mandatory, regardless of whether a project involves new construction or replacement windows. One such location is glazing in an individual fixed or operable panel adjacent to a door where the nearest vertical edge of the glazing is within a 24-inch arc of the door's edge in the closed position AND the bottom edge is less than 60 inches above the walking surface. This requirement applies to replacements; the existing-rough-opening exception does not override mandatory safety glazing locations. The 9-sq-ft / 18-inch threshold (Answer B) is the rule for large glazed panels, a separate provision.

Question 36: Which Maryland agency enforces occupational safety and health regulations for workers in the construction industry?

Maryland Department of Labor, Licensing and Regulation
Maryland Occupational Safety and Health (MOSH) (Correct answer)
Maryland Department of the Environment
Maryland Home Improvement Commission

Correct answer: Maryland Occupational Safety and Health (MOSH)

Maryland Occupational Safety and Health (MOSH) is the state agency responsible for enforcing workplace safety and health regulations, including those applicable to construction workers.

Question 37: Which masonry unit type is correctly matched with its primary composition?

Adobe — sun-dried earthen material with straw or other stabilizers (Correct answer)
Concrete masonry unit (CMU) — fired clay and shale
Glass block — tempered borosilicate glass with hollow center
Brick — Portland cement, aggregate, and water

Correct answer: Adobe — sun-dried earthen material with straw or other stabilizers

Adobe is traditionally made from earth (clay-rich soil), water, and organic material like straw, then sun-dried rather than kiln-fired. CMUs are made from Portland cement, aggregate, and water — not fired clay. Bricks are made from fired clay or shale, not cement. Glass block is made from soda-lime glass, not borosilicate.

Question 38: When scheduling subcontractors for a bathroom renovation, which sequence correctly reflects standard construction order?

Painting → Tile installation → Plumbing rough-in → Drywall
Plumbing rough-in → Electrical rough-in → Drywall → Tile → Painting (Correct answer)
Drywall → Plumbing rough-in → Tile installation → Electrical rough-in
Tile installation → Drywall → Plumbing rough-in → Painting

Correct answer: Plumbing rough-in → Electrical rough-in → Drywall → Tile → Painting

Rough-in work (plumbing and electrical) must be completed and inspected before walls are closed with drywall. Finish work — tile, then painting — comes last. Reversing this order forces costly tear-outs to access hidden systems.

Question 39: In cold-weather masonry construction (ambient temperature below 40°F and falling), ASTM C1072 and standard industry practice require that freshly laid masonry be protected from freezing for a minimum of how long after placement?

24 hours
12 hours
72 hours
48 hours (Correct answer)

Correct answer: 48 hours

ASTM and the Masonry Standards Joint Committee (MSJC) cold-weather construction guidelines require that newly laid masonry be protected from freezing temperatures for a minimum of 48 hours after placement when ambient temperatures are below 40°F and falling. During this period, mortar must maintain a minimum temperature of 40°F to achieve initial set and gain sufficient strength to resist freeze damage. 24 hours is insufficient for mortar to develop the strength needed to withstand a freeze cycle without disruption to the bond.

Question 40: A licensed MHIC contractor completes a basement waterproofing job. The homeowner discovers serious defects 28 months later and files a Maryland Home Improvement Guaranty Fund claim. The contractor's license has since lapsed. Which statement is most accurate regarding the claim?

The Guaranty Fund only covers claims where the contractor is still actively licensed at the time of the claim.
The claim must be filed within 24 months of project completion, so it is already time-barred.
The claim is valid if filed within 3 years of the date of loss, regardless of the contractor's current license status. (Correct answer)
The claim is barred because the contractor's license was not active at the time of filing.

Correct answer: The claim is valid if filed within 3 years of the date of loss, regardless of the contractor's current license status.

Under Maryland law, a Guaranty Fund claim must be filed within 3 years of the date of loss (not completion), and the contractor's current license status at the time of filing does not bar an otherwise valid claim. The license must have been valid at the time the work was performed. Since 28 months is within the 3-year window, the claim is timely.

Question 41: When constructing a concrete slab on grade, what is the PRIMARY purpose of placing a vapor barrier (polyethylene sheeting) beneath the slab?

To improve the bond between the subbase and concrete
To prevent ground moisture from migrating up through the concrete (Correct answer)
To prevent frost heave from damaging the slab
To reduce heat loss through the slab

Correct answer: To prevent ground moisture from migrating up through the concrete

A vapor barrier beneath a concrete slab-on-grade is installed to block capillary moisture migration from the soil up into the concrete and finished flooring above. Without it, moisture can cause efflorescence, deteriorate flooring adhesives, and promote mold growth. It does not address frost heave, thermal insulation, or bonding.

Question 42: Which of the following is a valid reason for the MHIC to suspend a contractor's license?

Abandoning a home improvement project without justification (Correct answer)
Hiring subcontractors on a project
Completing work ahead of schedule
Requiring a deposit before starting work

Correct answer: Abandoning a home improvement project without justification

Abandoning a project without legal justification is grounds for license suspension or revocation by the MHIC.

Question 43: A contractor provides a homeowner with a contract for a new deck. The contract is signed in the homeowner's kitchen. Under the Maryland Door-to-Door Sales Act, what is the standard cancellation period for the homeowner?

10 business days.
24 hours from signing.
5 business days. (Correct answer)
3 business days.

Correct answer: 5 business days.

Most home improvement contracts signed at the consumer's home are covered by the Maryland Door-to-Door Sales Act. This Act provides a 'cooling-off' period, giving the homeowner the right to cancel the contract without penalty until midnight of the fifth business day after the transaction. The period is extended to the seventh business day if the homeowner is 65 or older.

Question 44: What is a schedule 'baseline'?

The final punch list
The foundation footing elevation
The approved original schedule used to measure progress and delays (Correct answer)
The lowest bid received

Correct answer: The approved original schedule used to measure progress and delays

Comparing actual progress to the baseline shows whether the project is ahead or behind.

Question 45: A contractor is framing a cantilevered deck that projects 4 feet beyond the exterior wall of a wood-framed house. The interior floor joists (2×10 at 16" o.c.) will serve as the cantilever members. Per IRC span table guidelines and standard structural practice, what is the maximum allowable back-span ratio the interior portion of these joists must maintain relative to the 4-foot cantilever?

The interior back-span must be at least three times the cantilever length (minimum 12 feet)
The interior back-span must equal the cantilever length (minimum 4 feet to interior bearing)
No specific back-span ratio is required if the joists are doubled at the cantilever
The interior back-span must be at least twice the cantilever length (minimum 8 feet to interior bearing) (Correct answer)

Correct answer: The interior back-span must be at least twice the cantilever length (minimum 8 feet to interior bearing)

IRC R507.5 and standard structural engineering practice for cantilevered floor joists require the interior back-span (from the exterior bearing wall to the next interior bearing support) to be at least twice the cantilever length. For a 4-foot cantilever, the back-span must be a minimum of 8 feet. This 2:1 ratio ensures the interior portion provides adequate counter-moment to resist uplift and rotation at the fulcrum point (exterior wall). Doubling joists increases capacity but does not eliminate the back-span requirement. A 1:1 ratio would be structurally insufficient and a 3:1 ratio, while conservative, exceeds the minimum requirement.

Question 46: A subcontractor performs electrical work on a home improvement project in Maryland without being licensed. Who bears primary legal responsibility?

The local building department
Only the subcontractor
The general contractor who hired the subcontractor (Correct answer)
The homeowner

Correct answer: The general contractor who hired the subcontractor

The licensed general contractor is responsible for ensuring all subcontractors comply with Maryland licensing requirements.

Question 47: A homeowner in Maryland signs a home improvement contract on a Monday. By when must they notify the contractor if they wish to cancel under the right of rescission?

By midnight on Wednesday (2 business days later)
By midnight on Thursday (3 business days later) (Correct answer)
By midnight on Sunday (7 calendar days later)
By noon on Tuesday (1 business day later)

Correct answer: By midnight on Thursday (3 business days later)

The 3-business-day right of rescission begins the day after signing. A Monday signing means the 3-day period expires at midnight on Thursday.

Question 48: A contractor is renovating a two-story home and discovers a concealed horizontal soffit cavity running along the ceiling that connects directly into an open stud wall cavity below. Under the IRC, what is required at this junction?

A fire-rated drywall enclosure around the entire soffit
Fire blocking at the interconnection point between the horizontal soffit cavity and the vertical stud cavity (Correct answer)
No additional blocking is required as long as the stud bays are sealed at the top plate
Fire blocking is only required if the stud wall cavity exceeds 10 feet in height

Correct answer: Fire blocking at the interconnection point between the horizontal soffit cavity and the vertical stud cavity

IRC R302.11.1 specifically requires fire blocking at 'interconnections between concealed vertical and horizontal spaces such as occur at soffits, drop ceilings, and cove ceilings.' This junction — where a horizontal concealed cavity meets a vertical stud cavity — is one of the most commonly missed fire blocking locations in practice. It is independent of wall height requirements.

Question 49: When should the contractor schedule the required final inspection on a permitted project?

After all permitted work is complete and before final close-out with the owner (Correct answer)
Only if the homeowner requests it
Halfway through rough-in
Before any work begins

Correct answer: After all permitted work is complete and before final close-out with the owner

Final inspection confirms permitted work meets code and is part of properly closing out the job.

Question 50: Two individually MHIC-licensed contractors form a general partnership and begin performing home improvement work under the partnership's name. Which statement correctly describes the licensing requirement for the partnership?

No additional license is needed because both individual partners already hold valid MHIC licenses.
The partnership itself must obtain a separate MHIC license before performing home improvement work under the partnership name. (Correct answer)
The partnership may operate under the license of whichever partner holds the longer-standing license.
The partnership must notify MHIC within 30 days and designate one partner's license as the primary license for the entity.

Correct answer: The partnership itself must obtain a separate MHIC license before performing home improvement work under the partnership name.

Under Maryland law, each business entity performing home improvement work must hold its own MHIC license. The fact that the individual partners are each licensed does not extend coverage to the partnership as a separate legal entity. The partnership must apply for and obtain its own license before contracting under the partnership name.

Question 51: Under Maryland Home Improvement Law, which of the following acts by a licensed contractor constitutes a basis for mandatory license revocation (as opposed to discretionary discipline)?

Conviction of a crime involving moral turpitude directly related to the contractor's fitness to hold a license (Correct answer)
Failing to complete a project within the time specified in the contract on two separate occasions within 12 months
Performing home improvement work without a permit where one was required by local jurisdiction
Advertising a license number that belongs to a related but legally separate entity under common ownership

Correct answer: Conviction of a crime involving moral turpitude directly related to the contractor's fitness to hold a license

Maryland Business Regulation Article §8-621 distinguishes between grounds for mandatory versus discretionary revocation. Conviction of a crime involving moral turpitude that is directly related to the contractor's fitness — such as fraud, theft, or financial crimes related to construction — triggers mandatory revocation proceedings. The other options (permit violations, timeline failures, and advertising a related entity's license) are grounds for discretionary discipline, including fines, suspension, or conditions, but do not mandate revocation. This distinction between mandatory and discretionary grounds is a nuanced, frequently tested VIP-level topic.

Question 52: A homeowner files a claim against the Maryland Home Improvement Commission Guaranty Fund after a licensed contractor abandons a $45,000 project. The homeowner suffered $38,000 in actual damages. What is the maximum the homeowner can recover from the Guaranty Fund?

$15,000 — the Guaranty Fund maximum for residential projects under $50,000
$38,000 — the full amount of actual damages proven
$20,000 — the statutory per-claim maximum under the Guaranty Fund (Correct answer)
$25,000 — the per-occurrence cap applicable to licensed contractor defaults

Correct answer: $20,000 — the statutory per-claim maximum under the Guaranty Fund

The Maryland Home Improvement Commission Guaranty Fund caps recovery at $20,000 per claim, regardless of actual damages sustained. Even though the homeowner suffered $38,000 in losses, the Fund will pay a maximum of $20,000. The homeowner would need to pursue the contractor directly (or through litigation) for the remaining $18,000. This cap is set by statute and is a frequently tested distinction — the Fund is a last-resort consumer protection, not a full indemnification mechanism.

Question 53: According to the IRC stairway requirements, what is the maximum allowable rise (vertical height) for a single step in an interior staircase?

8¼ inches
8 inches
7 inches
7¾ inches (Correct answer)

Correct answer: 7¾ inches

The IRC specifies a maximum riser height of 7¾ inches for interior staircases. Additionally, the minimum tread depth is 10 inches. These dimensions are set to reduce the risk of falls on stairs, which are a leading cause of home injuries.

Question 54: A homeowner pulls a permit to add a new master bedroom suite to a 1988 home. The existing home has no interconnected smoke alarms. Under the IRC provisions for alterations to existing dwellings, what is the smoke alarm requirement?

Smoke alarms are required only if the addition increases conditioned floor area by more than 30 percent
Interconnected smoke alarms must be installed throughout the entire dwelling, not just in the addition (Correct answer)
Smoke alarms are required only within the new addition; existing areas are grandfathered under the original construction code
Smoke alarms must be installed in the new bedroom only, but do not need to be interconnected

Correct answer: Interconnected smoke alarms must be installed throughout the entire dwelling, not just in the addition

IRC R314.3.1 requires that when alterations, repairs, or additions requiring a permit are made to existing dwellings, smoke alarms shall be installed in all areas specified for new construction — including outside every sleeping area and on every level — and they must be interconnected. The permit trigger eliminates the grandfathering argument; the whole-house requirement is what catches contractors off guard.

Question 55: Which insurance covers a homeowner's claim that the contractor's crew damaged their hardwood floors while working?

Workers' compensation
Inland marine
Commercial general liability (Correct answer)
Builder's risk

Correct answer: Commercial general liability

CGL covers third-party property damage and bodily injury arising from the contractor's operations.

Question 56: After receiving a timely cancellation, within how many business days must the seller refund the buyer's payments?

30
3
10 (Correct answer)
5

Correct answer: 10

The seller must refund all payments and return any trade-in within 10 business days of getting the cancellation notice.

Question 57: Resource leveling in scheduling aims to:

Smooth out peaks and valleys in labor or equipment demand (Correct answer)
Remove all float from the schedule
Make every task the same duration
Eliminate the need for subcontractors

Correct answer: Smooth out peaks and valleys in labor or equipment demand

Leveling shifts tasks within their float to avoid overloading crews or equipment.

Question 58: A homeowner signs a home improvement contract on a Saturday at a home show. On the following Monday evening (Day 3), she mails a written cancellation notice. The contractor argues the rescission is untimely. Under Maryland's three-day right of rescission rules, which analysis is correct?

The rescission is timely only if the contractor received the mailed notice by the end of Day 3, not merely if it was postmarked
The rescission is timely because Sundays are excluded from the three-business-day count under federal and Maryland law (Correct answer)
The rescission is untimely because all calendar days, including Sunday, count toward the three-day period
The rescission is untimely because the right of rescission does not apply to contracts signed at home shows, only at the homeowner's residence

Correct answer: The rescission is timely because Sundays are excluded from the three-business-day count under federal and Maryland law

Under both the Federal Trade Commission's Cooling-Off Rule and Maryland's corresponding provisions, the three-day rescission period counts only business days. Sundays (and federal holidays) are excluded. A contract signed Saturday gives the homeowner until the close of the third business day — Tuesday — to cancel. Mailing on Monday is timely. The right applies to sales made at locations other than the seller's permanent place of business, which includes home shows.

Question 59: Under the International Residential Code (IRC), what is the minimum required ceiling height for habitable rooms in a new residential construction?

7 feet (Correct answer)
6 feet 8 inches
8 feet
7 feet 6 inches

Correct answer: 7 feet

The IRC requires a minimum ceiling height of 7 feet for habitable rooms. While 8 feet is common in practice and some local codes may be stricter, the IRC baseline is 7 feet.

Question 60: A Maryland homeowner files a claim against the MHIC Guaranty Fund after a licensed contractor abandons a $45,000 project. The homeowner has already obtained a civil judgment for $38,000. What is the MAXIMUM amount the Guaranty Fund will pay on this single claim?

$38,000 — the full amount of the civil judgment
$20,000 — the statutory per-claim cap from the Guaranty Fund (Correct answer)
$45,000 — the total contract value
$25,000 — the bond amount held by the Commission

Correct answer: $20,000 — the statutory per-claim cap from the Guaranty Fund

The MHIC Guaranty Fund has a statutory cap of $20,000 per claim, regardless of the contract value or the civil judgment amount. Even though the homeowner obtained a $38,000 judgment, the Guaranty Fund will pay no more than $20,000 on a single qualifying claim. Additional recovery would require pursuing the contractor's personal assets or other remedies.

Question 61: Under Maryland Consumer Protection law, which of the following contractor actions would constitute an 'unfair or deceptive trade practice'?

Completing work ahead of the estimated completion date
Charging market-rate prices for high-quality materials
Misrepresenting the materials to be used in a home improvement project (Correct answer)
Requiring a written change order for scope changes

Correct answer: Misrepresenting the materials to be used in a home improvement project

Misrepresenting materials to be used — for example, advertising premium materials but using lower-grade substitutes — is a deceptive trade practice under Maryland Consumer Protection law.

Question 62: A Maryland roofing contractor is installing asphalt shingles on a 3:12 pitch roof in Baltimore County (IECC Climate Zone 4). Where exactly must the ice barrier (self-adhering polymer-modified bitumen) terminate at the eave end of the roof?

At a point 24 inches above the exterior edge of the exterior wall, measured along the roof slope
At a point 24 inches past the drip edge, measured along the roof deck
At a point 24 inches inside the interior face of the exterior wall, measured horizontally (Correct answer)
At the ridge if the roof pitch is below 4:12, since the entire roof deck is at risk

Correct answer: At a point 24 inches inside the interior face of the exterior wall, measured horizontally

IRC R905.2.7.1 requires the ice barrier to extend from the lowest edges of all roof surfaces to a point not less than 24 inches inside the exterior wall line of the building — measured horizontally, not along the slope. This ensures the barrier covers the area directly above the heated wall below, where ice dams cause the most damage. Measuring along the slope (Answer A) is a common field error that may leave the critical wall-line area unprotected on steeper pitches.

Question 63: A contractor's MHIC license lapses for 13 months before the contractor applies for reinstatement. With respect to continuing education, what additional burden may the contractor face beyond simply paying the reinstatement fee?

The contractor may be required to complete CE hours for the lapsed period as a condition of reinstatement, in addition to the upcoming renewal cycle's requirement (Correct answer)
The contractor must submit a written waiver request to be exempt from CE for the first renewal after reinstatement
No CE obligation applies to reinstatement; the contractor resumes under the same renewal timeline as before lapse
The contractor must retake the full MHIC licensing examination regardless of CE completion

Correct answer: The contractor may be required to complete CE hours for the lapsed period as a condition of reinstatement, in addition to the upcoming renewal cycle's requirement

When a license lapses and a contractor seeks reinstatement, MHIC may impose CE completion for the period the license was inactive as a condition of reinstatement. This means the contractor could owe CE credit both for the lapsed interval and for the current renewal period—a double obligation that catches many reinstating licensees off guard.

Question 64: When a client requests additional work not included in the original contract scope, a contractor should:

Obtain a signed change order documenting the scope and price before proceeding (Correct answer)
Absorb the cost if it is less than 10% of the original contract value
Stop all work until an entirely new contract is negotiated
Perform the work as a goodwill gesture to maintain the client relationship

Correct answer: Obtain a signed change order documenting the scope and price before proceeding

Any change to the original contract scope must be documented in a written change order, signed by both parties, before the additional work begins. This protects the contractor's right to be paid for the extra work and prevents scope creep disputes.

Question 65: An MHIC contractor provides a warranty on their home improvement work. Under Maryland law, what is the minimum warranty period for most home improvement work?

90 days from date of completion
2 years from date of completion
Maryland law does not set a specific minimum warranty period; the contract governs (Correct answer)
1 year from date of completion

Correct answer: Maryland law does not set a specific minimum warranty period; the contract governs

Maryland Home Improvement Law does not mandate a specific minimum warranty period for general home improvement work. The warranty terms are negotiated and set forth in the contract.

Question 66: When framing a wall opening for a load-bearing window, what is the PRIMARY function of the trimmer (jack) studs?

To anchor the window unit directly to the sheathing
To transfer the header load down to the bottom plate (Correct answer)
To provide a nailing surface for interior drywall returns
To prevent lateral racking of the wall assembly

Correct answer: To transfer the header load down to the bottom plate

Trimmer (jack) studs run from the bottom plate to the underside of the header and carry the vertical load from the header down to the foundation system. They are the structural load path for forces transferred through the header above the opening.

Question 67: During a bathroom renovation, a contractor installs cement board as a tile substrate in a shower surround and uses standard 1-5/8 inch drywall screws instead of the specified alkali-resistant screws. What is the primary long-term risk of this substitution?

Standard screws will corrode in the alkaline cement board environment, losing holding power and allowing the substrate to separate from the framing (Correct answer)
The tile adhesion will be reduced because drywall screws create micro-vibrations
There is no significant risk as long as the screw spacing meets code requirements
The screws will strip during installation due to hardness difference

Correct answer: Standard screws will corrode in the alkaline cement board environment, losing holding power and allowing the substrate to separate from the framing

Cement board has a highly alkaline pH that rapidly corrodes standard steel drywall screws. Over time — often within 1–3 years — the screws lose tensile strength and shear capacity, allowing the substrate to flex away from the framing. This leads to cracked grout, tile delamination, and eventual water infiltration into the wall cavity. Alkali-resistant (typically hot-dipped galvanized or stainless) screws are specified precisely because of this chemical attack mechanism. Screw spacing compliance does not compensate for material incompatibility.

Question 68: Overlapping tasks that would normally be done in sequence to save time is called:

Fast-tracking (Correct answer)
Bonding
Crashing
Retainage

Correct answer: Fast-tracking

Fast-tracking runs activities in parallel and can raise the risk of rework.

Question 69: When preparing a materials estimate, a contractor should add a waste factor to account for cuts and defects. What typical waste factor is used for ceramic tile installations?

50%
1–2%
25–30%
10–15% (Correct answer)

Correct answer: 10–15%

A 10–15% waste factor is standard for ceramic tile to account for cuts, breakage, and pattern matching.

Question 70: The Maryland Home Improvement Guaranty Fund provides compensation to consumers. What is the maximum payment per claim from this fund?

$5,000
$20,000 (Correct answer)
$100,000
$50,000

Correct answer: $20,000

The MHIC Guaranty Fund pays up to $20,000 per claim to homeowners who suffer financial losses due to the actions of a licensed contractor.

Question 71: A 'punch list' in construction project management is:

A list of remaining deficiencies or incomplete items to be corrected before final acceptance (Correct answer)
The list of subcontractors scheduled to be paid at project completion
A log of OSHA safety violations recorded during the project
The original scope of work described in the signed contract

Correct answer: A list of remaining deficiencies or incomplete items to be corrected before final acceptance

A punch list is a document created near project completion listing items that do not conform to contract specifications or that remain incomplete. The contractor must address all punch list items before the owner grants final acceptance and releases final payment.

Question 72: A subcontractor finishes early, freeing a crew. What is the best project management response?

Evaluate whether successor tasks can start earlier to gain schedule time (Correct answer)
Cancel the remaining inspections
Raise the contract price
Send the crew home and keep the original dates regardless

Correct answer: Evaluate whether successor tasks can start earlier to gain schedule time

Early completion can create an opportunity to pull later tasks forward if dependencies allow.

Question 73: A contractor is building a masonry chimney and must choose between Type N and Type S mortar for the joints. The chimney will be exposed to freeze-thaw cycles and high heat from the firebox. Which mortar type is appropriate for the above-grade exposed sections?

Type S mortar, because it offers high compressive strength and superior freeze-thaw resistance (Correct answer)
Type M mortar, because maximum compressive strength is needed for all chimney applications
Type K mortar, because softer mortars are preferred for high-temperature applications
Type N mortar, because its lower compressive strength allows flexibility to absorb movement

Correct answer: Type S mortar, because it offers high compressive strength and superior freeze-thaw resistance

Type S mortar provides a balance of high compressive strength (minimum 1,800 psi) and excellent durability against freeze-thaw cycling, making it the code-recommended choice for above-grade exterior masonry exposed to the elements. Type N is acceptable for mild exposures but lacks the freeze-thaw durability needed for chimneys. Type M is too rigid for above-grade use, risking cracking when masonry units expand and contract, and Type K is rarely used in modern construction.

Question 74: A homeowner pays a licensed general contractor in full upon project completion. Eight weeks later, a roofing subcontractor files a mechanic's lien against the property for $11,000, alleging the general contractor never paid them. What is the homeowner's most accurate legal exposure under Maryland law?

The homeowner may be compelled to satisfy the subcontractor's lien even though they already paid the general contractor (Correct answer)
No exposure — payment in full to the licensed general contractor extinguishes all downstream claims
The lien is automatically void because it was filed after the homeowner's final payment
The MHIC Guaranty Fund automatically steps in to pay the subcontractor, shielding the homeowner

Correct answer: The homeowner may be compelled to satisfy the subcontractor's lien even though they already paid the general contractor

Under Maryland mechanics' lien law, a subcontractor's lien attaches to the property itself, not to the general contractor. The homeowner's payment to the GC does not satisfy the GC's separate obligation to its subcontractors. A homeowner who paid in full can still face a valid lien and potential double-payment liability. This is precisely why obtaining lien waivers from subcontractors at each payment milestone is a critical consumer protection practice.

Question 75: A licensed MHIC contractor subcontracts the electrical work on a remodeling project to another company. Who bears responsibility if the subcontractor performs defective work that violates the contract?

Responsibility is split 50/50 between the MHIC contractor and the subcontractor by law
The subcontractor alone, since they performed the actual work
The licensed MHIC contractor, who remains responsible for all work under the contract (Correct answer)
The homeowner, for not screening the subcontractor personally

Correct answer: The licensed MHIC contractor, who remains responsible for all work under the contract

The licensed MHIC contractor is responsible to the homeowner for all work performed under the contract, including work performed by subcontractors. The prime contractor cannot shift this responsibility to a subcontractor to escape liability to the homeowner.

Question 76: A Maryland home improvement contractor working in a specialty trade area (e.g., HVAC, electrical, plumbing) may be required to hold:

No license if the specialty work is subcontracted
Both an MHIC license and a separate specialty trade license (Correct answer)
Only the MHIC license, which covers all specialty work
Only the specialty license, as it supersedes the MHIC requirement

Correct answer: Both an MHIC license and a separate specialty trade license

In Maryland, specialty trade work such as electrical, plumbing, and HVAC requires separate specialty licenses in addition to the MHIC license. These are regulated by separate licensing boards.

Question 77: An example of non-door-to-door sales

Sale of a $300 investment advising package by credit card transaction via the internet (Correct answer)
Sale of insurance to a homeowner in his house
Before beginning work, the customer receives a signed copy of the contract.
A roofing contractor was contacted to repair a leak in a property's roof. Sells the owner a contract for a whole new roof.

Correct answer: Sale of a $300 investment advising package by credit card transaction via the internet

Door-to-door sales (or home solicitation sales) are typically defined as sales made at a buyer's residence or away from the seller's usual place of business. These sales often come with specific consumer protection rights, like a right to cancel. An online transaction for an investment advising package does not occur at the customer's home and is conducted remotely, thus it is not considered a door-to-door sale.

Question 78: A daily job log is most useful for:

Replacing the written contract
Avoiding the need for permits
Documenting work performed, weather, deliveries, visitors, and issues (Correct answer)
Setting the homeowner's credit limit

Correct answer: Documenting work performed, weather, deliveries, visitors, and issues

Daily logs create a record that supports claims, delay disputes, and progress tracking.

Question 79: The seller never gives the buyer the required Notice of Cancellation. What happens to the cancellation period?

The contract is automatically valid
It expires after 3 business days anyway
It does not begin until the proper notice is given (Correct answer)
It is shortened to 1 day

Correct answer: It does not begin until the proper notice is given

The cancellation period does not start running until the buyer gets the required notice.

Question 80: A contractor receives a $18,000 deposit from a new client for a project scheduled to start in five weeks. Facing cash-flow pressure, the contractor uses $14,000 of this deposit to pay outstanding invoices from a different, completed project. The contractor's business then fails before the new project begins. What MHIC violation has occurred?

The contractor violated MHIC rules by using one client's deposit funds to satisfy financial obligations from a separate client's project (Correct answer)
No violation — MHIC regulations do not govern how contractors allocate deposit funds before project commencement
A violation only if the original contract did not include a clause permitting flexible use of advance payments
A violation only if the contractor failed to repay the diverted funds within 30 days of the project start date

Correct answer: The contractor violated MHIC rules by using one client's deposit funds to satisfy financial obligations from a separate client's project

MHIC regulations prohibit contractors from commingling client funds or redirecting money received from one homeowner to cover costs or debts from another project. Deposits must be treated as restricted funds earmarked for the specific contract for which they were received. Using a new client's deposit to pay off old debts is a serious fiduciary violation that can result in license suspension or revocation, personal liability, and a Guaranty Fund claim by the harmed homeowner.

Maryland Home Improvement Contractor (MHIC) Exam

This exam certifies individuals to perform home improvement work in Maryland, covering business, law, and trade knowledge.

Questions

150 min

Time Limit

70%

To Pass

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These practice questions were written with AI tools. They are not real exam questions. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

dsd.maryland.gov — Fees · verified Oct 2026
labor.maryland.gov — Renewal, test delivery, eligibility, fees, exam format, passing score, registration, retake policy, score validity · verified Oct 2026