What is the maximum monetary limit for work that can be performed without a contractor license in Hawaii?
Correct Answer
D) $1,000
Under HRS 444, work exceeding $1,000 in labor and materials requires a contractor license in Hawaii.
Why This Is the Correct Answer
Under HRS 444, any construction, alteration, or repair project where the combined value of labor and materials exceeds $1,000 requires a contractor license. Projects at or below $1,000 may be performed without a license.
Why the Other Options Are Wrong
Option A: $5,000
$5,000 is the maximum civil penalty for unlicensed contracting, not the threshold that triggers the license requirement.
Option B: $10,000
$10,000 greatly exceeds the statutory threshold and is not a figure cited in HRS 444's licensing exemption.
Option C: $2,500
$2,500 is not the correct threshold. This figure may be confused with fee structures or fines in other Hawaii regulatory statutes.
Memory Technique
The '1,000-dollar handshake' — if the handshake (the deal) is worth more than $1,000 in Hawaii, you need a license to shake on it.
More Hawaii Questions
What is the minimum general liability insurance coverage required for Hawaii contractors under HRS 444?
A contractor's license expires on June 30th. What is the late renewal penalty fee in Hawaii?
A contractor completes $85,000 worth of work on a residential project in Hawaii. The property owner fails to pay. Under HRS 507, what is the maximum lien amount the contractor can claim?
A contractor's insurance policy has a $1 million aggregate limit and a $500,000 per occurrence limit. Two separate incidents occur: one causing $400,000 in damages and another causing $300,000. How much will the insurance cover?
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?
A contractor discovers contaminated soil during excavation of a residential property. Under Hawaii environmental regulations, who must be notified immediately?
A contractor working on a project in a Hawaii historic district must obtain approval from which entity before beginning work?
A contractor fails to obtain required building permits before starting work. The property owner discovers this and terminates the contract. Under Hawaii law, what is the contractor's right to payment?
A contractor has 12 employees with a total annual payroll of $480,000. If the workers compensation rate is $12.75 per $100 of payroll, what is the annual premium?
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A contractor has a workers compensation policy with a $500 deductible per claim. If there are 3 claims in one year totaling $15,000, $8,000, and $3,200, how much will the contractor pay in deductibles?
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What is the minimum bond amount required for a Class A contractor license in Hawaii?