Under HRS 444, what is the minimum net worth requirement for a Class A general contractor license in Hawaii?
Correct Answer
C) $50,000
HRS 444 requires Class A general contractors to maintain a minimum net worth of $50,000 to qualify for and maintain their license.
Why This Is the Correct Answer
$50,000 is the minimum net worth required under HRS 444 for a Class A general contractor license. This financial threshold ensures licensees have the stability to manage large-scale projects.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is below the statutory minimum. This figure may reflect a lower-tier or specialty license requirement but does not meet the Class A standard.
Option B: $100,000
$100,000 exceeds the minimum requirement. Some candidates overestimate the threshold, perhaps confusing it with bonding amounts or large-project financial requirements.
Option D: $75,000
$75,000 is not the correct figure under HRS 444. This number falls between the actual requirement and a higher threshold, making it a plausible but incorrect distractor.
Memory Technique
Associate 'Class A = $50K.' Think of 'A' as the first letter of the alphabet — the first (lowest) tier of the full general contractor license — with a clean, round $50,000 requirement.
More Hawaii Questions
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Under Hawaii's mechanics lien law, a subcontractor must provide preliminary notice within how many days of first furnishing labor or materials?
A subcontractor provides $28,000 worth of plumbing work but is not paid by the general contractor. Under HRS 507, what is the priority of the mechanics lien compared to a mortgage recorded before construction began?
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