With beautiful beaches, surrounding mountains, and some of the highest general contractor salaries in the U.S., Hawaii is calling!
If you’re wondering how to become a contractor in HI, you’re in the right place. This article will break down the job experience, exam, and application requirements for contractors in the Aloha State.
Do You Need a Contractor’s License in Hawaii?
Contractor licenses are required for all businesses and individuals completing contracting work in Hawaii. These licenses are overseen by the Contractor License Board of the Professional & Vocational Licensing Division of HI.
You do not need a license if you are completing work on your own residence, which you do not plan to sell or lease. You also don’t need a license if you’re only completing work valued at less than $1,000.
Hawaii Contractor Licenses
Hawaii offers three levels of contractor license types. First, you’ll need to choose whether you’re applying as an entity (with a Responsible Managing Employee – RSE) or Sole Proprietor. The RME is the employee who is responsible for overseeing the contracting work of an entity. Entities would be businesses such as partnerships, LLCs, or corporations. These must be fully registered entities with tax clearance.
A sole proprietor is one individual applying for a license on their own.
Types of Contractors
Once you choose how you’re applying for your license, you’ll need to choose what kind of license you want. There are three choices:
- General engineering contractor licenses are for contractors contracting with fixed works, such as irrigation, drainage, water power, water supply, shipyards, river control, highways, railroads, tunnels, airports, sewers, bridges, and more.
- General building contractor licenses are for those who mainly contract with structures built, being built, or to be built, for humans, animals, or moveable property of any kind.
- Specialty contractor licenses are for those with skilled contracting jobs, such as electrical, painting, landscaping, flooring, drywall, roofing, plumbing contractors, and more.
For further details on each license type and their definitions, see here.
Subclassifications
Once you’ve chosen the type of license you want to apply for, you can finally choose your subclassification. This is the most detailed aspect of your license which should relate directly to your work.
Each type of license has different subclassifications. Some examples include cement concrete, carpentry framing, and electrical subclassifications.
Check out this full list of all subclassification options per license type. Once you have your license, you can also apply for additional classifications.
HI Contractor License Requirements
License requirements vary depending on whether you’re applying as a business or an individual. Do note that subclassifications may also have additional requirements, so always check yours before applying.
Requirements for Businesses/Entities
Entities applying for a contractor’s license will need:
- Registration with the Business Registration Division
- Good moral character
- Liability and workers’ comp insurance, as well as a bond after their application is reviewed
- A designated RME
- RMEs must be employed by the business and assume the direct management of the contracting entity. They will supervise projects, technical and administrative decisions, and contracts, as well as make sure all rules are abided by.
Requirements for Sole Proprietors
To become a licensed sole proprietor contractor in Hawaii, you’ll need to meet these requirements:
- Be 18 years or older
- Have a good moral character
- Have 4 years of supervisory experience within the last decade
- Pass an exam in your classification of choice
- Be employed by or own a contracting entity
Sole proprietors can also designate an RME, but most apply and take the exam on their own.
Obtaining Your Hawaii Contractor License
If you qualify for a contractor’s license, it’s time to apply. Applications are reviewed during the monthly Board meetings, so you must submit everything before the first Tuesday of the month before the scheduled meeting date.
Below are the outlined application processes for both entities and individuals.
Applying as an Entity
Entities will need to fill out both the Entity Contractor License Application and the Principal RME Designation form. If your RME is not licensed in Hawaii, they’ll have to submit their own Responsible Managing Employee application.
In the application, be sure to include:
- The $50 application fee
- A compiled, reviewed, or audited financial statement WITH an independent accountant’s (CPA’s) report
- Current credit reports of each officer/partner/manager/member
- Hawaii State Tax Clearance issued within the last 6 months
- Trade name registration, if applicable
- Entity registration
After submitting all forms, fees, and supporting documentation, your application will be reviewed the following month. You can check the status of your application here.
If approved, your RME can then register for the official contractor’s exam the next month.
Once the RME passes the exam, the applicant will need to submit additional documentation (such as proof of bond and insurance) and a licensing fee, after which they will receive their contractor’s license.
Applying as a Sole Proprietor
Sole proprietors who want to become contractors must submit their application with:
- The $50 application fee
- Trade name registration, if applicable
- Notarized experience certificates to prove 4 years of supervisory experience in the last decade
- At least 3 certificates must be submitted
- The Chronological History of Projects form to prove 4 years of supervisory experience
- A compiled, reviewed, or audited financial statement WITH an independent accountant’s (CPA’s) report
- A current credit report
- Hawaii State Tax Clearance issues within the past 6 months
Sole proprietors follow the same application process and timeline as entities – the main difference is that they have a separate application and that, usually, the sole proprietor takes the official contractor’s exam instead of an RME. Check the status of your application here.
Sole proprietors will also have to hold the appropriate bond and insurance and pay a licensing fee before receiving their license.
Hawaii Contractor License Renewals
Hawaii contractor licenses should be renewed by September 30th of every even-numbered year. You can renew online or by mail as early as August the year before, although hard copy renewals must be requested.
Renewal fees are as follows:
- Entity: $338
- Sole proprietors: $338
- RME active status: $208
After expiration, you have 60 days to restore your license. After this, you’ll need to reapply for a new license. Restoration fees are as follows:
- Entity: $388
- Sole proprietors: $388
- RME active status: $258
