Mandatory Requirements (for the Responsible Managing Employee - RME)

Every contracting entity (sole proprietorship, partnership, LLC, corporation) must designate a Responsible Managing Employee (RME) who meets the qualifications for the license. This can be the owner, a partner, an officer, or an employee.

• Age: The RME must be at least 18 years of age.
• Good Reputation: The RME must have a good reputation for honesty, truthfulness, financial integrity, and fair dealing. The Board will conduct a credit report review and may consider any criminal history related to fitness for the profession.
• Experience: The RME must have a minimum of 4 years of supervisory experience within the past 10 years immediately preceding the application filing.
  
  • This experience must be at a journeyman level or higher (foreman, supervising employee, contractor, or owner-builder).
  • It must be directly related to the classification for which the license is sought (e.g., ventilating and air conditioning work for a C-52 license).
  • You must submit at least 3 notarized certificates in support of this supervisory experience from employers, fellow employees, or other professionals with direct knowledge of your work.
  • A chronological history of projects (Project List) must also be submitted.
• Examination: The RME must pass two examinations:
  
  • Hawaii Business and Law Exam: This covers business organization, licensing, estimating and bidding, contract management, project management, risk management, safety, labor law, financial management, tax laws, and lien laws.
  • Trade Exam (e.g., C-52 Ventilating and Air Conditioning Contractor Exam): This covers specific knowledge related to the trade classification. For C-52, topics include general knowledge and code requirements, load calculations, controls, ducting and insulation, piping, equipment, and OSHA safety.
  • Both exams are closed-book and typically require a 75% passing score. They are administered by Prometric.
• EPA Section 608 Certification: While not a state licensing requirement for the contractor license itself, any individual who handles refrigerants in Hawaii must hold this federal certification. The RME of an HVAC company would certainly need this. Know more
• Financial Statement: The applicant (individual or entity) must submit a current compiled, reviewed, or audited financial statement prepared by a licensed public accountant. This statement must be less than one year old.
• Credit Report: A current and complete credit report (covering at least the previous 5 years and issued within the last 6 months) is required for each officer, partner, manager, or member of the contracting entity.
• Hawaii State Tax Clearance: A current Hawaii State Tax Clearance (issued not more than 6 months old) with an original stamp from the State Department of Taxation. (Not required for individuals residing in Hawaii less than 1 year).

Mandatory Requirements (for the Contracting Entity/Business)

• Business Registration: If you are operating as a corporation, LLC, partnership, or using a trade name, you must have a filed-stamped copy of your current business registration from the Hawaii Department of Commerce and Consumer Affairs, Business Registration Division.
• Insurance:
  
  • General Liability Insurance: Required. Minimum bodily injury coverage of $100,000 per person and $300,000 per occurrence, and property damage coverage of $50,000 per occurrence. Often, carriers will require $1,000,000 per occurrence and $2,000,000 aggregate.
  • Workers' Compensation Insurance: Mandatory if you have employees.
• Surety Bond: The Contractors License Board may require a surety bond as a condition of licensure. The amount can range from $1,000 to $100,000, determined on a case-by-case basis based on financial stability and past issues. If required, it must be submitted after passing exams but before the license is issued.
• Definite Place of Business: A licensed contractor must have a definite place of business where the licensee may be served notice and legal process. A P.O. Box is not accepted.

How to Get an HVAC Contractor License in Hawaii

1. Meet RME Qualifications: Ensure the designated RME meets all age, experience, and good reputation criteria.
2. Obtain EPA Section 608 Certification: (For the RME and any technicians handling refrigerants).
3. Prepare Financial Documents: Gather the required financial statement, credit report(s), and Hawaii State Tax Clearance.
4. Register Business (if applicable): Register your business entity (corporation, LLC, trade name) with the Hawaii Business Registration Division.
5. Submit Application for License:
   
   • Complete the "Application for Contractor License" form from the Hawaii Contractors License Board.
   • Attach the non-refundable $50 application fee for each application filed.
   • Submit all supporting documents: experience certificates, project list, financial statement, credit reports, tax clearance, business registration documents.
   • Applications must be received by the first Tuesday of the month for review at the following month's Board meeting.
6. Board Review and Approval to Test: The Board will review your complete application. If approved, you will be notified of your eligibility to schedule the examinations.
7. Schedule and Pass Examinations: Register directly with Prometric (the testing agency) and pay their examination fees (e.g., $80 for Business and Law, $85 for the C-52 trade exam). Pass both the Hawaii Business and Law Exam and the relevant Trade Exam (e.g., C-52).
8. Submit Final License Requirements: After passing the exams, provide proof of:
   
   • General Liability Insurance.
   • Workers' Compensation Insurance (if applicable).
   • Any required surety bond.
   • Pay the initial license fee (prorated based on the licensing period). For a contracting entity or sole proprietor, this can be $633 if licensed between Oct. 1 of an even-numbered year and Sept. 30 of an odd-numbered year, or $494 outside that timeframe. For an RME, it's $438 or $334.
9. Receive Your License: The Hawaii Contractors License Board will issue your Contractor License.

Additional Considerations

• No Technician Licensing: Hawaii does not license HVAC technicians or journeymen at the state level. Technicians must work for a licensed contractor.
• License Classification C-52: This is the most common classification for general HVAC work, covering ventilating and air conditioning systems, including piping, non-electrical controls, instrumentation, building automation, energy management, and related site work. It also covers boiler and thermal fluid systems.
• Other Related Classifications: Depending on the specific work, other "C" specialty contractor classifications might be relevant, such as C-4 Boiler, Hot-Water Heating, and Steam Fitting Contractor (though C-52 often includes this). C-13 Electrical Contractor would be needed if you perform electrical wiring beyond simply connecting to existing circuits.
• License Renewal: Licenses must be renewed every two years by September 30th of even-numbered years. Renewal requires submitting a renewal application, fee, current tax clearance, and proof of liability and workers' compensation insurance.
• Continuing Education: There are no specific continuing education requirements explicitly stated for renewal, but staying updated on codes and industry best practices is crucial.
• Reciprocity: Hawaii does not have reciprocity agreements with other states for contractor licenses. Even if you hold a license in another state, you will still need to meet Hawaii's supervisory experience requirements and pass both the Business and Law and Trade exams.
• Local Permits: Always check with local county and municipal building departments for any additional permits or regulations required for specific projects.

This information has been referenced from the following sites 1, 2