What is the minimum bond amount required for a Class A contractor license in Hawaii?
Correct Answer
D) $40,000
Hawaii requires Class A contractors to maintain a minimum surety bond of $40,000 to protect consumers from contractor defaults or violations.
Why This Is the Correct Answer
Class A contractors in Hawaii must maintain a surety bond of at least $40,000 under HRS Chapter 444. Class A is the highest license tier, covering contracts over $25,000, so the bond amount is set high to protect consumers from financial harm caused by contractor default, incomplete work, or code violations.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is the project threshold that separates Class A from Class B contractors — not the bond amount. Confusing the project value ceiling with the bond requirement is a common error.
Option B: $10,000
$10,000 is the bond amount for a Class C (specialty) contractor license, the lowest tier. Class A requires a much larger bond to reflect the larger scale of projects.
Option C: $20,000
$20,000 corresponds to the Class B contractor bond requirement. Class B covers projects from $1 to $25,000; Class A's bond is double that at $40,000.
Memory Technique
Think '4 = A': Class A is the top grade (A), and 4 is the highest single digit — $40,000. Double the Class B ($20,000) bond for Class A.
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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