A Class C specialty contractor wants to bid on a project worth $175,000. According to HRS 444, what is the maximum project value a Class C contractor can undertake?
Correct Answer
A) $150,000
Under HRS 444, Class C specialty contractors are limited to projects with a maximum value of $150,000. This contractor would need to upgrade to a Class B license to legally bid on the $175,000 project.
Why This Is the Correct Answer
HRS 444 limits Class C specialty contractors to projects with a maximum value of $150,000. A project valued at $175,000 exceeds this threshold by $25,000. The contractor would be legally prohibited from undertaking this project under a Class C license and would need to hold a Class B (General Building) or Class A (General Engineering) license to bid on projects of this size. Knowingly bidding above the license limit is a violation subject to disciplinary action.
Why the Other Options Are Wrong
Option B: $100,000
$100,000 is a plausible-sounding limit but is not the HRS 444 threshold for Class C contractors. No $100,000 cap appears in the standard contractor classification limits under Hawaii law.
Option C: No limit for specialty work
'No limit for specialty work' is incorrect. Class C licenses are specialty licenses and carry the $150,000 project value cap precisely because specialty contractors operate in a narrower scope than general contractors. Unlimited project authority would effectively make the Class C equivalent to higher classifications, which defeats the tiered licensing system.
Option D: $200,000
$200,000 exceeds the actual Class C limit and would allow the contractor to legally take the project, but this is not the correct threshold. Selecting $200,000 would mean the contractor could take the job — but HRS 444 does not permit this.
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