Contractor licensing in Hawaii

Hawaii runs one of the most unified contractor-licensing systems in the United States. Almost every construction activity (general, specialty, trade) flows through a single state Board, the Hawaii Contractors License Board, administered by the Professional and Vocational Licensing (PVL) Division of the Department of Commerce and Consumer Affairs (DCCA). Three big buckets, not fifty. Under HRS Chapter 444 and HAR Title 16 Chapter 77, Hawaii contractor licenses fall into three primary classifications: - Class A (General Engineering Contractor). Fixed-works construction requiring specialized engineering knowledge and skill. - Class B (General Building Contractor). Structures requiring use of more than two unrelated building trades or crafts. - Class C (Specialty Contractor). Construction work requiring special skill (electrical, plumbing, HVAC, and many others). The trade-specific C-classifications most relevant to the building trades include: - C-13 Electrical Contractor (work under 600 volts phase to phase). - C-37 Plumbing Contractor (complete plumbing systems). - C-52 Ventilating and Air Conditioning Contractor. - C-63 High Voltage Electrical Contractor (600 volts and up). - C-4 Boiler, Hot-Water Heating, Hot Water Supply, and Steam Fitting Contractor. - C-40 Refrigeration Contractor. - C-20 Fire Protection Contractor. A complete list of Class C sub-classifications is in the Description of Contractor License Classifications publication linked below, and in HAR Title 16 Chapter 77 Exhibit A. An A or B licensee automatically carries several specified C sub-classifications without further examination or fee. Two-license structure for electrical and plumbing. Hawaii separates the contractor license from the individual tradesperson license. A C-13 authorizes the business to contract for electrical work, but the individual performing the work needs an individual electrician license (ES, EJ, ET, or EU) under HRS Chapter 448E, administered by the Hawaii Board of Electricians and Plumbers. The same two-track structure applies to plumbing (PM, PJ, PA). The Board application (page 6) makes this explicit: if the contractor's RME does not personally hold an individual electrician or plumber license, the firm must employ someone who does. Responsible Managing Employee (RME). A corporation, partnership, joint venture, LLC, or LLP cannot hold a contractor license without a Responsible Managing Employee (RME). The RME is an officer, partner, manager, or member who gives full time to the supervision and control of operations and holds the trade qualification on behalf of the entity. The RME must also file a separate RME application and be qualified in each classification the entity holds. A sole owner can be the RME for the sole owner's own entity. What gets filed at application. The entity application (Form CT-01) requires: - A compiled, reviewed, or audited financial statement not more than 1 year old, with an independent CPA's report. - Current credit reports on each officer, partner, manager, or member, not more than 6 months old. - A current Hawaii State Tax Clearance (not more than 6 months old) unless the entity has been registered in Hawaii less than 1 year. - Entity registration through the DCCA Business Registration Division (BREG); Certificate of Good Standing or filed-stamped entity documents. - Trade name registration (if operating under a DBA). - RME appointment letter. - Certificates of insurance (liability and workers' compensation). - Recovery Fund fee and application fee (see the Bonding article for the Recovery Fund detail). - Two exams: Business and Law exam, plus a trade exam for each classification requested. GE tax. Every contractor doing business in Hawaii must register for the General Excise (GE) tax with the Department of Taxation. The GE tax applies to gross receipts from construction activity and is a separate registration from the contractor's license. Local permits. Each county (City and County of Honolulu, Hawaii County, Maui County, Kauai County) issues its own building, electrical, and plumbing permits. A state contractor license does not exempt a contractor from county permit and inspection requirements.