Hawaii Contractor License Exam — All Questions

Which body licenses and regulates contractors in Hawaii?

• a.The Hawaii Department of Taxation
• b.The Hawaii Department of Labor and Industrial Relations
• c.The Contractors License Board (CILB), within the DCCA Professional and Vocational Licensing Division✓
• d.Each county's building department, with no statewide board

Hawaii licenses contractors through the Contractors License Board (CILB), housed in the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs (DCCA). Its authority is HRS Chapter 444, and licensing is statewide rather than county-by-county.HRS Ch. 444

Hawaii sorts contractor licenses into three classes. Which pairing correctly describes them?

• a.Class A General Engineering; Class B General Building; Class C specialty trades✓
• b.Class A unlimited; Class B limited to $1,000,000; Class C limited to $10,000
• c.Class A residential only; Class B commercial only; Class C government only
• d.Class A apprentice; Class B journeyman; Class C master

Hawaii uses Class A (General Engineering, for fixed works needing specialized engineering knowledge), Class B (General Building, for structures that shelter people, animals, or property), and Class C (more than sixty specialty trades). The classes describe scope, not experience rank.HRS Ch. 444 (license classes)

What score is required to pass the Hawaii contractor Business and Law examination?

• a.75% (60 of 80)✓
• b.A simple majority of questions
• c.65% (52 of 80)
• d.70% (56 of 80)

Hawaii sets the passing score at 75%, which is 60 of the 80 questions on the Business and Law exam. This is higher than the 70% used by many mainland states, so candidates should aim well above a bare pass.HRS Ch. 444; CILB exam specifications

How is the Hawaii contractor Business and Law examination administered with respect to reference materials?

• a.Open book, with any printed material permitted
• b.Open book, with the NASCLA guide permitted
• c.Take-home, with unlimited internet access
• d.Closed book — no reference materials are allowed✓

Unlike most states, Hawaii administers its contractor exams CLOSED book. Candidates may not bring reference materials and must know the licensing law, lien rules, and business content from memory, which makes disciplined study essential.CILB examination format

A candidate has passed the NASCLA Accredited Commercial General Building Contractor exam on the mainland and wants a Hawaii Class B license. How does Hawaii treat that NASCLA result for the trade requirement?

• a.Hawaii does not accept the NASCLA exam; the candidate must pass Hawaii's own Class B trade examination✓
• b.NASCLA waives both the trade and the business/law exams
• c.NASCLA fully satisfies the Hawaii trade exam and no further testing is needed
• d.NASCLA is accepted only for Class A engineering work

Hawaii does not accept the NASCLA Accredited Commercial General Building Contractor exam. The CILB administers its own Class A, B, and C trade examinations, so the candidate must sit Hawaii's Class B trade exam (and the Hawaii Business and Law exam). The NASCLA guide is used only as source material.CILB trade examination policy

In Hawaii, the qualifying individual who supplies the required experience and passes the exams for a contracting business is known as the:

• a.Registered Design Professional
• b.Notary of record
• c.County competency cardholder
• d.Responsible Managing Employee (RME) or Responsible Managing Owner✓

A Hawaii license is tied to a Responsible Managing Employee (RME) — or a Responsible Managing Owner — an individual with the required experience who passes the examinations and actively supervises the licensee's construction operations.HRS Ch. 444 (RME requirement)

Which project best fits Hawaii's Class B (General Building) classification?

• a.Building a commercial structure that involves two or more unrelated trades to shelter its occupants✓
• b.Installing only the electrical wiring on a project
• c.Constructing a state highway bridge
• d.Boring a municipal water main

Class B General Building covers structures built to house or shelter people, animals, or property and typically involving two or more unrelated trades. A single-trade job (like electrical only) falls under the appropriate Class C specialty, and fixed engineering works like a highway bridge are Class A.HRS Ch. 444 (Class B scope)

What are the length and time limit of the Hawaii contractor Business and Law examination?

• a.80 questions with a 180-minute time limit✓
• b.50 questions with a 90-minute time limit
• c.40 questions with a 60-minute time limit
• d.115 questions with a 330-minute time limit

The Hawaii Business and Law exam is 80 questions with a 180-minute (three-hour) limit, and 60 correct (75%) are required to pass. The separate Class B trade exam is 80 questions over 240 minutes.CILB Business and Law exam specifications

A contractor wants to perform only roofing work in Hawaii. Which license class is appropriate?

• a.Class B General Building
• b.Class A General Engineering
• c.A Class C specialty license for the roofing trade✓
• d.No license is needed for a single trade

Single specialty trades such as roofing, plumbing, or electrical fall under Class C, which covers more than sixty specialty classifications. A Class B general building license is meant for projects involving two or more unrelated trades.HRS Ch. 444 (Class C specialty)

Under HRS §444-9, what does Hawaii require before a person may act or hold themselves out as a contractor?

• a.Only a county business tax receipt
• b.Nothing, as long as the work is under $10,000
• c.A valid Hawaii contractor license for the work being performed✓
• d.A one-time registration with the Department of Taxation

HRS §444-9 makes it unlawful to act, or offer to act, as a contractor in Hawaii without holding a license for that work. Licensing is the gateway requirement, and operating without a license exposes the person to civil and criminal penalties.HRS §444-9

An unlicensed operator performs contracting work in Hawaii and then sues the owner for the unpaid balance. Under HRS §444-22, what is the result?

• a.The operator may collect the full contract price
• b.The operator cannot bring or maintain any action to collect compensation for the work✓
• c.The operator may collect the cost of materials only
• d.The owner must pay, plus a statutory penalty to the operator

HRS §444-22 bars a person who engaged in contracting without a license from bringing or maintaining any court action to collect compensation for that work. This loss of the right to sue for payment is Hawaii's strongest civil deterrent to unlicensed contracting.HRS §444-22

Which situation fits Hawaii's owner-builder exemption from the licensing requirement?

• a.A developer building ten homes a year for sale to the public
• b.An owner who builds or improves a structure on their own property with their own labor, signs the required disclosure, and does not offer it for sale or lease within one year✓
• c.A property manager hiring day laborers to remodel rental units for investors
• d.A handyman advertising statewide remodeling for hire

HRS §444-2.5 lets an owner build or improve their own property using their own labor without a license, provided they sign the owner-builder disclosure and do not sell or lease the property within one year of completion. Building for sale to the public is contracting and requires a license.HRS §444-2.5 (owner-builder exemption)

What does Hawaii require a licensed contractor to include in its advertising?

• a.Nothing beyond a phone number
• b.A notarized copy of the contract
• c.The contractor's license number, so consumers can verify the license✓
• d.The owner's home address

Hawaii requires a licensed contractor to display its license number in advertising and on contracting documents. This lets consumers verify the license with the CILB and helps the board identify unlicensed operators who advertise without a number.HRS Ch. 444 (advertising)

How does Hawaii's mechanics' and materialmen's lien process under HRS Chapter 507, Part II, differ from a typical mainland county lien filing?

• a.Liens are filed only with the county tax collector and never involve a court
• b.The claimant applies to the circuit court, and a hearing is held before the lien attaches✓
• c.The lien attaches automatically with no filing or notice
• d.There is no lien remedy in Hawaii

Hawaii uses a court-driven lien process. Under HRS Chapter 507, Part II, the claimant files an application with the circuit court (generally within about three months of completion) and a hearing is held before the lien attaches. This differs from states where a lien is perfected by a simple recorder filing.HRS Ch. 507, Part II

Instead of a retail sales tax, Hawaii imposes which tax on a contractor's business gross income?

• a.No transaction tax of any kind
• b.A flat $500 annual privilege fee only
• c.The General Excise Tax (GET), generally 4% (4.5% on Oahu with the county surcharge)✓
• d.A 6% statewide sales tax

Hawaii has no sales tax; it levies a General Excise Tax (GET) under HRS Chapter 237 on business gross income, generally 4% (4.5% on Oahu with the county surcharge). Contractors must obtain a GET license and pay GET on their gross receipts.HRS Ch. 237 (General Excise Tax)

Beyond losing the right to sue for payment, what additional exposure does an unlicensed contractor face under Hawaii law?

• a.Automatic issuance of a license after a first offense
• b.Civil fines and criminal penalties for unlicensed contracting✓
• c.Only a warning letter from the board
• d.No further exposure of any kind

Under HRS §444-23 and related provisions, unlicensed contracting can bring civil fines and criminal penalties in addition to the HRS §444-22 bar on collecting compensation. The combined civil and criminal exposure makes unlicensed work a serious risk in Hawaii.HRS §444-23 (penalties)

Which of the following is a recognized ground for the CILB to suspend or revoke a Hawaii contractor's license?

• a.Carrying more insurance than the minimum
• b.Hiring a licensed subcontractor
• c.Completing a project ahead of schedule
• d.Abandoning a construction project without legal excuse✓

HRS §444-17 lists grounds for discipline, including abandoning a project without legal excuse, willful or fraudulent conduct, and other violations of the contractor law. Good practices like finishing early or carrying extra insurance are not grounds for discipline.HRS §444-17 (grounds for discipline)

What consumer-protection mechanism, funded by Hawaii licensees, can compensate consumers harmed by a licensed contractor's misconduct?

• a.A federal insurance pool administered by OSHA
• b.There is no such mechanism in Hawaii
• c.The Contractors Recovery Fund, into which licensees contribute (HRS §444-16.5)✓
• d.The county building department's general fund

Hawaii maintains a Contractors Recovery Fund (HRS §444-16.5 and related sections) supported by licensee contributions. It can pay consumers harmed by a licensed contractor's misconduct up to statutory limits, and the contractor must reimburse the fund for any payout made on their account.HRS §444-16.5 (Contractors Recovery Fund)

Under Hawaii's Workers' Compensation Law (HRS Chapter 386), an employer generally must carry workers' compensation coverage once it employs how many workers?

• a.Three or more employees
• b.Ten or more employees
• c.One or more employees✓
• d.Five or more employees

Hawaii requires workers' compensation coverage for employers with one or more employees under HRS Chapter 386. This single-employee trigger is stricter than states that begin the requirement at three workers, so coverage should be in place as soon as the first employee is hired.HRS Ch. 386 (Workers' Compensation)

A candidate is preparing for the Hawaii Business and Law exam. Which study approach matches the exam's format?

• a.Assume a 60% passing score allows guessing
• b.Plan to bring the NASCLA guide into the exam room
• c.Memorize the licensing law, lien rules, and tax basics, because the exam is closed book at a 75% passing score✓
• d.Rely on tabbing an open reference book to look up every answer

Because the Hawaii exam is closed book with a 75% passing score, candidates cannot look answers up during the test. Effective preparation means committing HRS Chapter 444 licensing rules, lien procedure, and General Excise Tax basics to memory.CILB examination format

How is the NASCLA Contractors Guide used in Hawaii's licensing process?

• a.Only as source material for Hawaii's own closed-book exams — it does not substitute for the Hawaii trade exam✓
• b.As a substitute that waives the Hawaii Business and Law exam
• c.As an open-book reference candidates may bring into the Hawaii exam
• d.It has no role of any kind in Hawaii

Hawaii runs its own Class A, B, and C examinations and does not accept the NASCLA exam. The NASCLA guide is used only as background source material for content; it is not brought into Hawaii's closed-book exams and does not waive any Hawaii examination.HRS Ch. 444 (approved source material)

Before doing business in Hawaii, a contractor should register for which state tax account?

• a.No account, because construction is tax-exempt in Hawaii
• b.A retail sales tax permit, because Hawaii's rate is 6%
• c.A General Excise Tax (GET) license with the Department of Taxation✓
• d.A federal excise-only account with the IRS

Because Hawaii taxes business gross income through the General Excise Tax (HRS Chapter 237) rather than a sales tax, a contractor must obtain a GET license and remit GET on gross receipts. Failing to register and pay GET is a common compliance gap for new Hawaii contractors.HRS Ch. 237 (GET license)