Michigan Residential Builders License Practice Test

When is the final payment due with a permit?

1. Upon contract signing

2. Upon completion of work

3. Upon final inspection

4. Upon delivery of materials

The correct answer is: Upon final inspection

The final payment for a project with a permit is typically due upon final inspection. This is because the final inspection is a crucial step in the construction process, as it serves to ensure that all work has been completed according to the approved plans and meets local building codes and regulations. Without this inspection, the work may not be deemed satisfactory or compliant, which could potentially lead to complications or additional work being required. By linking the final payment to the final inspection, it emphasizes the importance of ensuring that the project meets all required standards before the builder receives full compensation. This practice protects homeowners from paying in full before they are satisfied with the final results and gives builders a clear incentive to complete their work to the required standards.