Specialty Contractor (C-7 Carpet Laying)

Hawaii C-7 Carpet Laying Specialty Contractor License

The Hawaii Contractors License Board issues the C-7 specialty license for carpet laying work. Under HRS §444-9, no one may act, or advertise, as a specialty contractor in Hawaii without a license in the classification the work requires.

What the C-7 Classification Covers

Under HAR Title 16, Chapter 77, Exhibit A, the C-7 classification covers applying or installing acceptable fabric floor coverings, artificial turf, or other prefabricated materials to surfaces. Composition and wood flooring fall under the separate C-21 flooring classification.

C-7 Is Not Bundled Into the A or B License

C-7 carpet laying is not among the specialty classifications HAR §16-77-32 grants automatically to A general engineering or B general building licensees. Under HAR §16-77-33(b), a B license does not entitle its holder to undertake a contract unless the contract requires more than two unrelated building trades or crafts, or the B contractor holds the specialty license the work calls for.

The C-7 scope is written around the material being installed: fabric floor coverings, artificial turf, and other prefabricated materials applied to surfaces. Neighboring Exhibit A classifications cover the surfaces C-7 does not:

• C-21 flooring takes linoleum, rubber, vinyl, cork, and other composition flooring, wood floor covering, and floor sanding and refinishing.
• C-51 tile takes ceramic, mosaic, granite, and terrazzo tile and marble or cultured marble products.
• C-3b play court surfacing takes preparing play court surfaces, applying top or seal coats, and painting play court lines.
• C-55 waterproofing takes watertight non-skid surfaces on parking decks, play courts, and walking decks.

Under HAR §16-77-33(d), a licensee who acts or advertises in a classification it does not hold is treated as engaged in unlicensed activity.

Qualifying Takes Four Years of Supervisory Experience and Two Exams

HAR §16-77-18 requires not less than four years of supervisory experience as a foreman, supervising employee, or contractor in the classification you are applying for, earned within the ten years before you apply. A contracting entity qualifies through a responsible managing employee (RME) who meets that requirement. After the Board approves the application, the applicant must pass Part I (Hawaii building, safety, health, labor, and lien laws and contracting business administration) and Part II (specialized knowledge of the C-7 classification) under HAR §16-77-39 and §16-77-40. PSI Services administers both exams, and they must be passed within six months of approval.

Insurance Must Stay in Force for the Life of the License

Before a license issues, file a certificate showing bodily injury liability of at least $100,000 each person and $300,000 each occurrence, and property damage liability of at least $50,000 each occurrence, plus workers' compensation unless you are self-insured or excluded under HRS chapter 386. Under HRS §444-11.1, letting workers' compensation, liability insurance, or a required bond lapse forfeits the license automatically as of the date the coverage expired or was cancelled.

The Board May Require a Bond of at Least $5,000

HRS §444-16.5 lets the Board require a surety bond of not less than $5,000, weighing your financial condition and experience in the field. It is set case by case, not required of every licensee.

Apply for $50; Renew for $338 by September 30 of Even-Numbered Years

The application fee is $50, non-refundable, for each application filed; license fees are assessed after Board approval. Every contractor license renews by September 30 of each even-numbered year regardless of when it was issued. The current period runs October 1, 2026 to September 30, 2028. On-time renewal costs $338 for an active entity or sole proprietor, $208 for an active RME, and $160 for inactive status. Renewal requires current insurance, any required bond, and a Hawaii tax clearance issued within six months; the Board lists no continuing education requirement.

Missed September 30? You Have 60 Days to Restore

A license not renewed by September 30 is forfeited, and the holder is unlicensed and may not contract. Under HRS §444-15(b), a forfeited license may be restored within sixty days of September 30 by filing all required documents and fees plus a penalty fee. The Board lists the cost to restore an active entity or sole-proprietor license at $388. After the restoration window closes, the license terminates and you must apply as a new applicant.

Penalties

Under HRS §444-23(c), contracting without a license (a §444-9 violation) carries civil fines of $2,500 or 40% of the contract price for a first offense, $3,500 or 40% for a second, and $5,000 or 40% for later offenses, whichever is greater. Advertising as a contractor without a license is a misdemeanor under §444-9.2. Violating a cease and desist order can draw a court-imposed fine of not less than $10,000 per offense under §444-10.5(j), and each day of violation is a separate offense. A licensee who contracts outside its classification is fined $500 for a first offense, $1,000 for a second, and $1,500 to $2,000 for each later offense under §444-23(a).