Hawaii Contractor's License Bond

Bond Penalty: Set by Licensing Board

Per Hawaii §16-77-4, No person may act or advertise as a contractor, general engineering contractor, general building contractor, or specialty contractor without a license issued by the Department of Commerce and Consumer Affairs. A Hawaii contractor's license bond is one of the prerequisites of licensing if the Board determines that a surety bond is necessary to provide financial assurance to the public. Generally, the contractor license bond requirement is imposed after review of an applicant's personal credit report and financial statement. Salespersons, associations of salespersons or an entity who solicits for or negotiates a contract on behalf of more than one contractor is also considered a contractor and must be licensed.

All persons licensed under Chapter 444, HRS, are classified by the Board into one or more classifications, sub-classifications, or both as follows:

  • General engineering contractor "A"
  • General building contractor "B"
  • Specialty contractor "C"

The Hawaii contractor's license bond is an obligation which guarantees more that simple statutory compliance. The obligation is also a financial guarantee. The surety bond insures that the licensee will all employee wages as they are due, act honestly in the conduct of business and not be found guilty of any wrongful act in the course of his or her business dealings. If the Board requires a licensee to file a contractor's surety bond then said bond must be maintained for at least one (1) year before he or she may request a waiver of the same. The board may waive the bond requirement if a contractor adequately demonstrates financial integrity determined by the submission of a current credit report, financial statements, state tax clearance or proof of payment arrangement and/or other documents.

The Board advises that walk-ins are limited to abbreviated hours due to COVID-19 until further notice. Correspondence can be sent as follows:

King Kalakaua Building (aka United States Post Office Custom House and Court House)
335 Merchant Street
Honolulu, HI 96813

Hawaii surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of general and specialty contractors. We offer this class of surety bond and performance bonds to all applicants in EVERY state where contractors must be bonded. Although personal credit is a factor in surety bond underwriting, we have programs to fit every credit condition. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat regarding a Hawaii contractor's license bond application or to discuss your particular needs.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

WHEN A "CONTRACTOR'S BOND" IS NOT A LICENSE OR PERMIT BOND, WHAT IS IT?

A “contractor’s bond” is one of the most common surety bond needs in the North American market but what does that term mean? MANY different parties may require a contractor to provide a "bond". Private and public project owners, state licensing boards and local municipalities all routinely require contractors to file a bond of one type or another to guarantee very specific things. Generally the need will fall in to one of these categories:

  • License & Permit Bonds (L&P) - required by states and municipalities to issue a contractor license. These may be simply “obey the code” obligations, or can include onerous wage guarantees.
  • Third Party Fidelity Bonds - also known as dishonesty bonds, insure dishonesty losses resulting from the contractor and his or her employees’ actions while providing services on a client’s premises (this is what a party refers to when he says, "We are bonded.").
  • Contract performance bonds: bid bonds, payment and performance bonds for particular projects.

Obligee's Bond Form