GC Laws — Hawaii contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - Hawaii requires the appropriate license before acting or advertising as a covered general engineering, general building or specialty contractor. The small-work exemption applies only when aggregate labor and materials do not exceed $1,500, and it does not apply when a building permit is required or when the work is part of a larger project or divided to evade licensing. [ ] Mechanic's liens - The claimant files an application and notice in circuit court within 45 days after statutory completion and serves the required owners, interested parties and contracting parties. The court determines probable cause and orders any lien; merely recording a claim is not the statutory process. - Statutory completion depends on the notice-of-completion procedure, including publication twice seven days apart and the required affidavit. Without a valid timely notice, §507-43(f) deems completion one year after actual completion or abandonment. - A lien ordered by the court expires three months after entry unless enforcement proceedings are commenced within that period under §507-43(e). [ ] Retainage - Under subsection (c), public retention is limited to 5% of the total amount due. After 50% completion with satisfactory progress, further withholding stops; unsatisfactory progress allows continued withholding within the statutory 5% limit. - Under subsection (d), when a subcontractor provides a qualifying bond or acceptable collateral, its retention percentage cannot exceed the prime’s. Subsection (e) permits negotiated subcontract retention up to 10%, subject to (d), and separately governs written notices for other withheld payments. [ ] Prompt payment - On Hawaii public contracts governed by HRS §103-10.5, the contractor must pay a subcontractor within ten days after receiving the corresponding disbursement if the subcontract terms are met and there is no qualifying bona fide dispute. Final subcontractor retainage is likewise due within ten days after the prime receives final payment when the section’s conditions are satisfied. [ ] Prevailing wage - Covered job-site laborers and mechanics must receive at least the prevailing basic wage and fringe-benefit amounts determined by the director for similar work. - Section 104-2 excludes specified experimental/demonstration housing under §46-15 or chapter 201H when both the project cost is below $500,000 and the eligible bidder or developer is a private nonprofit corporation. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.