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M03 knowledge check
Legal, Risk & Michigan Construction Admin
Pass is 80%. This is open-book — use the academy, not hope.
1. You are asked to 'just get started' before a signed change order on extra grinding. You should:
Tell the crew to go — we can paper it later.
No work on extras without written direction. Issue a PCO, get a signature or written proceed-at-risk from Eric.
Start if the GC said it on a phone call.
Invoice it as a rounding error.
2. Michigan construction lien rights generally require:
Waiting until the job is done, then filing if unpaid.
Strict notice and timing rules. Miss the window and the right can die. Admin owns the calendar.
Only residential jobs.
A court date before any notice.
3. A coatings contractor's insurance file is incomplete without which often-forgotten piece?
Flood insurance on the owner's house.
Pollution / contractor's pollution coverage — resins, solvents, and isocyanates are not 'just GL.'
Life insurance on every installer.
Cyber insurance for the grinders.
4. A school project mentions prevailing wage. Admin must:
Ignore it unless the superintendent brings it up.
Flag it immediately: certified payroll, classifications, and posting rules will apply. Coordinate with payroll before first hour on site.
Pay everyone the same shop rate and hope.
Ask the teachers' union.
5. Client asks you to backdate an insurance certificate. You:
Do it once as a favor.
Refuse. Route to Eric. Never fabricate documents.
Change the date but keep a secret copy.
Have the crew lead sign it.
6. A subcontract arrives with Paid-if-Paid language from a long-standing GC. You:
Sign it — relationship exempts them.
Do not sign. Flag the clause. Escalate per 2.14.4 (request Paid-when-Paid, then scope-limit, then the Territory Manager's live meeting with the GC, then 50% material deposit as last resort). The Contracts Group runs the sequence.
Email the internal protocol to the GC so they understand.
Initial the clause and hope.
7. Who issues a Certificate of Insurance, and how fast?
Admin types one in Word the same afternoon.
Nick Holton / Diversified Insurance Group, 24-hour SLA, Maverick's Taylor address in the insured block. Never edit the PDF.
The GC's portal auto-generates it.
Reuse last job's cert and change the additional insured.
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