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| Do
You Need
a Building
Permit? |
| Click
here for
a handy
guide to
building
permit
guidelines
from the
Department
of Planning
and Permitting
(Adobe
PDF file). |
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Before you sign
on the dotted line...
Chapter 444 of the
Hawaii Revised Statutes
(HRS) requires that
a licensed contractor
be hired for any
contruction work
which is more than
$1,000 or for which
a building permit
is required. This
contractor is considered
the responsible and
liable party of record
for the construction
described in the
permit.
Property owners who
are building or improving
their own home or
business site, however,
can register as an
Owner-Builder with
their county building
department. This
exempts owners from
the requirements
to be licensed as
contractors, yet
still allows them
to obtain building
permits.
In order to protect
and inform consumers
about the legal consequences
of being an Owner-Builder,
the law requires
that each applicant
must sign a Disclosure
Statement provided
by the county building
departments.
This page discusses
some of the major
responsibilities
and potential liabilities
of being an Owner-Builder. |
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What is the
definition of owner-builder?
Chapter 444, Hawaii
Revised Statutes
(HRS) defines owner-builders
as owners or lessees
of property who build
or improve structures
on property for their
own use, or for use
by their immediate
family.
How do I qualify
as a builder-owner?
You must register
for a permit as an
owner-builder at
the Building Permit
department in your
County Building office
and comply with the
laws defining your
responsibilities.
Are there any
restrictions on owner-builder
exemption permits?
As an owner-builder,
a homeowner acts
as its own contractor.
However, all electrical
and plumbing work
must be performed
by contractors licensed
to perform that work.
The structure cannot
be sold or leased
or offered for sale
or lease within one
(1) year after completion
of the construction.
If a person obtains
an owner-builder
exemption more than
once within a two
year period, that
person is presumed
under the law to
be in violation of
the exemption requirements.
What are the major
responsibilities
of an owner-builder?
As an owner-builder,
you are acting as
your own general
contractor oversseing
that the work complies
with all applicable
laws, building codes
and zoning regulations.
It is your responsbility
to insure that all
subcontractors hired
by you have the appropriate
licenses required
by state laws and
county ordinances.
As a general contractor,
you may be acting
as the employer of
an worker or unlicensed
contractors you hire.
As an employer, you
must comply with
all
employer requirements
such as deducting
and paying the State,
FICA, and withholding
taxes, and providing
unemployment, temporary
disability and workers'
compensation insurance
for those workers.
What are the risks
of hiring an unlicensed
contractor?
You may be sued by
an unlicensed individual
who is injured while
working on your project
or be required to
pay workers' compensation
or other insurance
coverage if a claim
is filed and an employer-employee
relationship is determined.
How do owner-builders
find themselves liable
for these claims?
An unlicensed contractor
may persuade a property
owner to obtain an
owner-builder permit,
and then have that
unlicensed contractor
do the work. The
owner is considered
the actual employer
of any workers hired
by an unlicensed
contractor.
Licensed contractors
or subcontractors
are only qualified
to do specified types
of construction.
A licensed contractor
working outside its
company contracting
license classification
is considered an
unlicensed contractor
on the job.
Does everyone
engaging in contracting
activity need to
be licensed?
The most frequently
used and abused exemption
in the contractor
law is the $1,000
exemption, commonly
referred to as the "handyman" exemption.
The handyman exemption
permits the hiring
of a person not licensed
as a contractor if
the total cost of
the project including
labor, materials,
taxes, and all other
items if equal to,
or less than $1,000.
This exemption does
not apply in any
case where:
- a building
permit is required
no matter what
the total contract
price is;
- for electrical
and plumbing
work;
- where the
work is parceled
out into multiple
projects.
Are there penalties
for owner-builder
violations?
Depending on the
type of infraction,
a first offense
may result in a
fine of up to $5,000
or 40% of the appraised
value of the building,
whichever is greater.
Subsequent violations
may result in a
fine of $10,000
or 50% of the building's
appraised value.
How can a property
owner be protected?
Hire contractors
that you have confirmed
are properly licensed
and current in
all employer withholdings
and insurances.
Contact the Professional
and Vocational
Licensing Division
of the Department
of Commerce and
Consumer Affairs
(586-3000) for
licensing information.
You may call the
Regulated Industries
Complaints Office's
(RICO) complaints
history line (808)
586-2677) to check
if there are any
complaints against
a contractor.
If I am having
problems with my
contractor and
want to file a
complaint, who
do I call?
You may call the
Regulated Industries
Complaints Office,
Consumer Resource
Center, at (808)
587-3222.
Government Agencies
Ready to Assist
You
The state Regulated
Industries Complaints
Office (RICO) has
jurisdiction over
complaints relating
to licensed or
unlicensed contractors.
Call the Consumer
Resource Center
at (808) 587-3222
if you have a consumer
complaint. From
the neighbor islands,
call the state
toll-free telephone
number listed below.
(You will then
be asked to dial
the last five digits
of the state phone
number you want
to call, then press
the # sign.):
Kauai 274-3141
Hawaii 974-4000
Maui 984-2400
Molokai/Lanai (800)
468-4644
Call (808) 586-2677
for complaint history
information.
To check if a contractor
is licensed, contact
the state Professional
and Vocational
Licensing Division
at (808) 586-3000.
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| For
Building
Permit
or Owner-Builder
information
contact: |
On Oahu
Building Department
City & County
of Honolulu
Ground Floor,
Municipal Office
Building 650
South King
Street
Phone (808)
768-8220
|
On Maui
Building Permits
Section
County
Land Use & Code
Administration
250 South High
Street
Wailuku,
Maui, HI 96793
Phone (808)
243-7250
|
On Kauai
Building Division
County Department
of Public Works
4444 Rice Street,
Suite 175
Lihue,
Kauai, HI 96766
Phone (808)
241-6655
|
On The Big
Island
Building Division
County Department
of Public Works
25 Aupuni Street,
Room 106
Hilo,
HI 96720
Phone (808)
961-8331 |
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| This
information is provided
as a public service
by the Pacific Resource
Partnership in cooperation
with the State of
Hawaii Department
of Commerce and Consumer
Affairs and the County
Building Department
on your island. It
is for informational
purposes only, as
a reference on certain
matters pertaining
to Owner-Builder
exemption permits.
It should not be
construed as legal
advice, and all information
is subject to change. |
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| Click
here for
a printer-friendly
version of the
above information. |
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