Finding a Contractor License in Hawaii: A How-To Guide
Everything You Need to Know About Contractor Licensing in Hawaii
A contractor license is a legal certification that empowers an individual or business to engage in construction and other contracting-related services within the state of Hawaii. Because of the inherent risks in this industry—specifically the potential for unsafe working conditions for both workers and the public—contractors are required to obtain licensure in order to prove their competency, knowledge and responsibility.
Any individual or business wanting to go into the contracting business must be licensed under Chapter 444 of Hawaii law . The state of Hawaii issues licenses to contractors in 11 trade disciplines: Air Conditioning & Refrigeration; Building; Building General; Carpentry; Electrical; Floor Covering; Painting & Decorating; Plumbing; Home Improvement; Swimming Pools; and Solar contracting. There are also two classes of licenses: Contractors Act (movies, theaters, and parapets), and Re-roofing. All contractors statewide must have a bond worth $2,500 and be registered for GE tax.
Licenses are issued by the Professional & Vocational Licensing Board at the Department of Commerce and Consumer Affairs.
How to Check a Contractor’s License in Hawaii
There are a few simple steps to verify whether the contractor you are looking at hiring has a license. To make this process more simple, they are listed below:
Step 1: The State of Hawaii Government website has a link for checking whether the contractor you are thinking about hiring has a license. You can find the database at this link: (insert link).
Once you get into the website you will see the yellow search box. You have two choices when you are getting prepared to take on this challenge. First you can put in the name of the contractor, or if you have the contractor’s license number you can put that into the box and click "search."
As can be seen from the screenshot above, the information displayed includes the license number, expiration date, address, business name, the business entity, expiration date, and the last time the information was updated. As you can probably tell, the information is not incredibly useful but it would be wise to still follow through on the next two steps of the verification process.
Step 2: Once you understand the background of the competing contractors, it is recommended that you check out anything negative that you may have found through the first step. If a complaint has been filed against the contractor, you can see a picture of the property, and possibly even pictures of the license of the contractor or of their crew.
Now that you know whether the license is active, it is a good time to try and see if the State of Hawaii has taken any action against the contractor. You can look this up at this link: (insert link).
From there, there are many choices. It is better to start with the "Consumer Complaint Search" and the "Disciplinary Actions Search." Those will hopefully provide you with enough information to determine whether it is safe to use the contractor or not.
Step 3: After doing a background check through the State of Hawaii’s website, it is recommended that you do one more check to see what the company has been up to lately and if there have been any reviews posted about the company. This may be difficult to definitively complete, as it is very possible that the company will have spread out its reviews across different websites and it can be difficult to figure that all out.
Some websites that post customer reviews of other companies include Facebook, the Better Business Bureau, and Yelp. A simple search query with the company name should be enough to give you a good indication of whether this is the right company for you.
Pitfalls of Searching for Contractor Licenses
When conducting a contractor license search, whether you are the public, contractors, or employers doing your due diligence on the people and businesses you are hiring, there are a few common mistakes found:
No matching license type. If you had a roofer working on your home, but only search for "general contractor", you may be surprised that he doesn’t come up in the results. There are 52 types of licenses in Hawaii. Make sure you know the correct type of license for the work being done to conduct a successful search.
Spelling mistake. If you search for alternate spellings of names before testing out the exact spelling, you may be missing some valuable information on the individuals you are searching.
Not pulling up all of the companies. You know that the plumbers you hired were licensed, but what about the other guys you didn’t hire? If you didn’t search for the other companies doing work on the project, you do not know their license status. This information should be provided to you.
Common words. This is one of the most common problems with searches. Searching for "russ" will find more than just officials license applications under the name Russell. Avoid common words and common names in license searches. Narrow it down by category and location where possible.
Not searching all counties. Searching just on Oahu if you’re looking for a ticket scalper who does business on all islands can be inefficient. Be sure to check the county’s licenses and get a clearer picture as to what the person or company licensed in that county.
The Legal Consequences of Hiring Unlicensed Contractors
When it comes to hiring contractors for a construction project in Hawaii, many homeowners are often willing to overlook the necessary due diligence. If a contractor is available sooner than later, perhaps with lower costs, most homeowners would hire the individual without thinking twice. And while the contractor may have every ability to perform the work, whether he may be properly licensed to do so is quite another matter altogether. The following examples help to illustrate some pitfalls that can occur when homeowners hire contractors who are not properly licensed.
The first set of examples deals with situations where a homeowner hires an unlicensed contractor to perform roofing work. On average, the contract price for a roof can run anywhere from $1,000 to $2,000. Under § 28-300-3.1 of the Hawaii Administrative Rules, a contractor performing roofing work, with a contract price over $1,000, must be licensed as a roofing contractor or general contractor (i.e., prime contractor license). Therefore, if a homeowner hires an unlicensed contractor to remove and replace the roof of his home for a contract price of $1,500, he may be liable to pay the contractor $1,500.
If the contract price is over $2,500, a licensed contractor would have to pay 2 times the contract price. So, for example, if a homeowner hires an unlicensed roofing contractor for his contract price of $5,000, the homeowner would have to pay the contractor $10 , 000.
Another similar example concerns general contractors performing foundation work. According to HAR § 28-300-3.3, a contractor performing foundation work, with a contract price over $1,000, must be licensed as a building of structures contractor or a general engineering contractor. Again, if the contract price is over $2,500, the same penalties apply.
Finally, let’s consider hypothetical situations involving three types of construction contracting: (1) alteration of a concrete driveway; (2) excavation and grading work for a swimming pool; and (3) building a 240 sq. ft. storage room. In the first scenario, because the contract price, $1,500, is under $1,000, the contractor does not need a license and the homeowner is not liable for penalties. The second situation involves a contract price of $2,500—housing grading work performed by a licensed general engineering contractor. As this is less than $2,500, the occupant is not liable. But for the storage room, while the altercation price of $3,000 is under $5,000, the contract price averages $250 per sq. ft. and will most likely be considered a substantial portion of work done under HAR § 16-77-79. In this instance, the contractor needs to be licensed as either a general building contractor or general engineering contractor, and if not the homeowner may owe $10,000.
These examples are for context only and do not include every possible outcome. It is important that homeowners understand exactly what sort of work requires licensure.
How to Get Help with Contractor Licenses
Resources and Support for Contractor License Issues in Hawaii
Contractor license issues can be complex and challenging, and residents and businesses in need of support are encouraged to reach out to the appropriate authorities and organizations. The Hawaii Department of Commerce and Consumer Affairs (DCCA) serves as the primary governing body for contractor licenses in the state. The DCCA’s Office of Consumer Protection (OCP) can provide guidance on filing complaints and understanding relevant state laws and regulations. For more information, the OCP can be reached at: Hawaii Office of Consumer Protection Address: 335 Merchant Street, Room 300, Honolulu, HI 96813 Phone: (808) 587-3222 Email: [email protected] Website: cca.hawaii.gov/ocp The Hawaii State Licensing Board for Contractors (HSLB) is responsible for regulating and overseeing the licensure of contractors within the state. For questions regarding licensing requirements, renewals, and disciplinary actions, the HSLB can be contacted at: Hawaii Contractors License Board Address: 3344 Wai’alae Ave. Suite 210, Honolulu , Hawaii 96816 Phone: (808) 586-2694 Fax: (808) 586-2689 Email: [email protected] Website: cca.hawaii.gov/pvl/boards/con Professional organizations in the contracting field can also provide support and guidance for those dealing with contractor license issues in Hawaii. The Better Business Bureau (BBB), for example, offers business and consumer resources to help businesses and consumers make informed decisions about contractors and other services. The BBB can be contacted at: Better Business Bureau Serving Hawaii Address: 1136 Union Mall Ste. 301, Honolulu, HI 96813 Phone: (808) 531-4951 Email: [email protected] Website: hawaii.bbb.org Consumer Affairs agencies may also be able to help bridge the gap between consumers and Hawaii authorities when dealing with contractor license issues. The updated list for relevant local agencies includes: Honolulu: Honolulu Department of Consumer Affairs Hawaii County: Hawaii County Office of Consumers Affairs Kauai County: Kauai County Office of Consumer Protection Maui County: Maui County Office of Consumer Protection Other resources include state-approved contractor associations, professional organizations, and training programs that can offer additional insight into licensing matters.