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Hawaii Contractor License Bond

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What is a Hawaii Contractor License Bond?

Just like most other states, Hawaii requires certain construction contractors to obtain and keep in place a license to perform residential or commercial construction projects within the state. Contractors required to maintain a license to work may also need to post a surety bond as part of their licensing requirements. This surety bond, known as a Hawaii contractor license bond, is a crucial aspect of complying with state laws governing construction contractors.

A Hawaii contractor license bond is a form of protection for the customers, vendors, and other parties that conduct business with a licensed contractor. Should work not be performed as promised, or a payment not be made, a claim can be made against a Hawaii contractor license bond to help offset financial damages.

Who Needs a Hawaii Contractor License Bond?

In the state of Hawaii, not every licensed contractor is required to secure a Hawaii contractor license bond. Unlike other states with similar licensing rules, Hawaii examines a contractor's need for a bond on a case by case basis. For those who perform residential or commercial work on construction projects, checking with the licensing authority in Hawaii is essential to determine if a Hawaii contractor license is required or not.

Hawaii Contractor License Bond Obligee Details

For those contractors who are required to post a Hawaii contractor license bond, there are three parties involved in the process. First, the licensed contractor is known as the principal of the bond, or the one required to secure the bond as part of his or her licensing requirements. Next, the obligee is the state's licensing authority requiring a bond be put in place. Finally, the surety company providing the bond to the licensed contractor pays bond claims should they arise, but the principal is required to repay any claims made against the bond.

The obligee of Hawaii contractor license bonds is as follows:

Contractors License Board

DCCA, PVL Licensing Branch

PO Box 3469

Honolulu, Hawaii 96801

Phone: 801-586-3000

How Much Does a Hawaii Contractor License Bond Cost?

Two main factors play a part in determining the cost of a Hawaii contractor license bond. The first is the amount of the bond required by the Contractors License Board. The minimum bond amount for a licensed contractor in Hawaii is $5,000, but a higher bond may be necessary depending on the type of work a contractor plans to perform. The contractor does not pay the full amount of the bond required, but instead, pays a fraction of this total, known as the bond premium.

The bond premium is calculated as a percentage of the bond amount, typically ranging from 1 to 10%. The surety company offering a Hawaii contractor license bond determines this bond premium by evaluating a contractor's credit history and track record with previous contractor bonds, if any. A lower credit score results in a higher bond premium, while a strong credit history can lower the total out-of-pocket cost for a Hawaii contractor license bond.

How do You Get a Hawaii Contractor License Bond?

After determining the amount of bond you need, submit a brief online application to start the process of securing a Hawaii contractor license bond. The process is simple and straightforward, and you can receive a quote for your bond premium quickly.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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About JW Surety Bonds
We are a family owned and operated agency established in 2003. We started with just two people, and grew to become the largest volume bond producer in the nation with 50+ employees. Since day one, our team focus has been on providing real-time online quotes, an easy process, and the best in claims defense. Learn more about our company.