HI Roofing Contractor flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Responsible Managing Employee

The individual who actively supervises and is qualified in the licensed classification, qualifying the business entity's contractor license; an owner may serve as RME.

Contractor license classifications

Hawaii issues General Engineering (A), General Building (B), and Specialty (C) licenses, with specialty work divided into lettered and numbered subclassifications such as C-13 electrical.

RME one-entity rule

An RME may qualify only one contractor entity at a time; a qualifying owner generally may qualify only the entity in which the required ownership interest is held.

Active supervision requirement

The RME must be regularly and actively engaged in day-to-day supervision of the licensed work; a nominal or absentee RME is grounds for discipline.

Entity licensing principle

The contractor license is issued to the business entity (sole proprietorship, partnership, LLC, or corporation), not to individual employees, and the entity must be registered and in good standing.

Loss of RME

When the RME terminates association, the licensee must notify the Board and replace the RME within the allowed time; otherwise the license becomes unqualified and may be revoked.

Experience documentation

Applicants must prove the required experience for each classification using employer letters, contracts, permits, and financial records showing the applicant's role and duration of work.

Contractor examinations

Applicants must pass the Hawaii contractor law and business management examination plus the trade examination for each classification requested, administered through the Board's testing vendor.

Surety bond requirement

A surety bond in the amount set by statute or rule must be maintained continuously while licensed, with the bond on file naming the licensed entity.

Insurance proof

Proof of workers' compensation insurance and, where applicable, general liability coverage must be current before a license is issued or renewed.

Pre-licensing tax clearance

Applicants must provide a tax clearance from the Hawaii Department of Taxation and comply with child support enforcement requirements before the license is granted.

Online license status check

License status (pending, active, unqualified, revoked, expired) can be checked through the DCCA Professional and Vocational Licensing online license search, which shows classification and RME.

Classification change

Adding or changing a classification requires a new application and examination for that classification; the license certificate lists the entity, license number, classifications, and expiration date.

Biennial renewal cycle

Hawaii contractor licenses are renewed every two years on the expiration date shown on the certificate; failure to receive a renewal notice does not extend the license.

Renewal requirements

Renewal requires the renewal application, renewal fee, current surety bond, proof of workers' compensation insurance, and a current tax clearance; missing any one prevents renewal.

Expired license practice

A license not renewed by its expiration date becomes expired; practicing on an expired license is unlicensed contracting and subject to penalties.

License restoration

Restoration of an expired license generally requires a restoration application, renewal fees plus a restoration or late fee, and current bond, insurance, and tax clearance.

Address change reporting

Changes of address, phone, email, or business name must be reported to the Board promptly so renewal notices and official correspondence reach the licensee.

RME change notification

A change of RME or qualifier requires notifying the Board and submitting the new qualifier's documentation and qualification evidence; the license is unqualified until then.

Entity form change

A change in business entity form, such as sole proprietor to LLC or a change in ownership structure, generally requires a new license application rather than a simple name change.

Unqualified license status

Failure to maintain bond, insurance, or a qualified RME can result in the license being placed on unqualified status, suspended, or revoked by the Board.

HRS Chapter 444

The primary Hawaii contractor licensing statute; it requires anyone offering or performing construction work as a contractor to hold a valid license.

HAR Title 16 Chapter 77

The Hawaii Administrative Rules implementing the contractor licensing statute, covering application, examination, licensing, and disciplinary procedures of the Contractors License Board.

Unlicensed contracting penalties

Unlicensed contracting is a misdemeanor and also bars the unlicensed contractor from enforcing the contract or recovering compensation for the work in court.

Disciplinary grounds

The Board may discipline a licensee for gross negligence, incompetence, fraud, abandonment, failure to maintain a qualified RME, or violation of contractor statutes and rules.

Board disciplinary actions

Board sanctions include fines, probation, suspension, revocation, and restitution orders; the Board may also require corrective action or additional education.

RICO complaints

Complaints against contractors are filed with the DCCA Regulated Industries Complaints Office, which investigates and may refer matters to the Contractors License Board for discipline.

Contractor recovery fund

A statutory fund that may compensate consumers who obtain a judgment against a licensed contractor for licensed work, subject to statutory eligibility limits.

License lending prohibition

Licensees must not aid or abet unlicensed contracting, must not lend their license to another person or entity, and must not misrepresent their classifications or qualifications.

Written contract obligation

Consumer protection obligations include providing written contracts, complying with contractor licensing and building codes, and honoring warranty and completion obligations.

Contractor law and business exam

A required examination covering Hawaii contractor law and business management, passed along with the trade examination before a classification license is issued.

Business registration prerequisite

The business entity must be registered and in good standing with the DCCA Business Registration Division before or alongside contractor licensing.