Contractor License Types, Entities, and Responsible Managing Employee (RME) Requirements
This domain tests whether you can match a Hawaii contracting business to the correct license type and qualify it with a proper Responsible Managing Employee (RME). The exam focuses on HRS chapter 444 classifications, entity-level licensing, and the RME’s full-time, hands-on role.
License classifications
HRS §444-7 establishes three license types: A general engineering contractor, B general building contractor, and C specialty contractor. Specialty licenses carry subclassifications, and roofing is a C specialty. Do not treat A or B as an “all trades” license: a B general building contractor must respect specialty limits, particularly electrical and plumbing, which require the corresponding specialty license. A roofing project is normally contracted under the roofing specialty; a general contractor who sublets roofing to an unlicensed roofer exposes both parties to discipline.
Entities and the RME
A Hawaii contractor license is issued to the business entity, not to the individual worker. A sole proprietorship is qualified by its owner. A partnership is qualified by a partner. A corporation, LLC, or other entity must designate an RME who is a full-time employee, actively engaged in the contracting business, and qualified in the same classification. The owner or a corporate officer may serve as RME only if that person is genuinely full-time and active. An RME may not serve as the RME for more than one contractor at the same time. If the RME leaves, the entity must notify the board and replace the RME; otherwise the license is subject to suspension.
Worked example
An LLC has two members. One member holds a roofing specialty license but works about 20 hours per week and is also the RME for another roofing company. That member cannot qualify the LLC: the RME must be full-time and cannot serve two contractors. If the LLC hires a full-time roofing supervisor who holds the same specialty license, that supervisor can be designated RME and the LLC can be licensed.
Traps that cost marks
Assuming a corporate officer is automatically the RME; treating the RME as a silent qualifier; using an RME licensed in a different classification; ignoring the B-license limits on electrical and plumbing; and failing to report an RME departure promptly.
Key points
- A, B, and C are distinct license types; roofing is a C specialty.
- The license belongs to the entity, but the RME qualifies it.
- The RME must be full-time, active, and licensed in the same classification.
- One person cannot be RME for more than one contractor at a time.
- RME changes must be reported and the entity must maintain a qualified RME.