Contractor License Bond in Hawaii

What this bond requires in Hawaii

HRS § 444-16.5 authorizes the Contractors License Board to require any licensee or applicant (general or specialty) to post a surety bond of not less than $5,000, with the actual amount set based on the licensee financial condition and experience. The bond is conditioned on payment of employee wages and the honest conduct of the contracting business. Bond coverage must be maintained continuously; failure to maintain causes automatic license forfeiture, and if not reinstated within 60 days the contractor must reapply as a new applicant.

Who requires it

The contractor license bond is required by the Hawaii Department of Commerce and Consumer Affairs (DCCA), Professional and Vocational Licensing Division - Contractors License Board under HRS § 444-16.5 (Bond); HRS ch. 444 (Contractors); HAR ch. 16-77.

How to file in Hawaii

Pass the Contractors License Board exam, then submit licensing fees, certificate of liability insurance, workers compensation proof (if employees), and the prescribed surety bond on Bond Form CT-09 (when required by the Board) to the PVL Licensing Branch. Bond must remain on file with the Board for the duration of licensure.

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FAQ

Common questions

Is a contractor license bond required in Hawaii?

Discretionary; statutory minimum $5,000 for both general and specialty contractors. Board sets actual amount based on applicant financial condition and experience.

How much is the bond in Hawaii?

Hawaii does not publish a single flat amount. See the state-specific notes for how it is determined.

Who requires the bond?

The bond is required by the Hawaii Department of Commerce and Consumer Affairs (DCCA), Professional and Vocational Licensing Division - Contractors License Board.

How is the bond filed?

Pass the Contractors License Board exam, then submit licensing fees, certificate of liability insurance, workers compensation proof (if employees), and the prescribed surety bond on Bond Form CT-09 (when required by the Board) to the PVL Licensing Branch. Bond must remain on file with the Board for the duration of licensure.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.