Eight questions in the style of the Hawaii Business and Law Examination. Each card hides its answer, so pick yours first, then tap to reveal and read the explanation. This is a study warmup. The free 12-question practice quiz is the scored version, with email results.
This is an independent guide, not affiliated with the Hawaii Department of Commerce and Consumer Affairs, the Contractors License Board, or PSI. Licensing details change, so verify current requirements against the Board's official publications before you act.
Question 1
A handyman agrees to repaint a lanai for $1,400 in labor and $300 in materials, plus $120 in sales tax passed through to the homeowner. Which statement about Hawaii licensing is most accurate?
- A. No license is required, because the total is under $2,000
- B. A license is required, because the aggregate labor and materials exceed $1,500
- C. No license is required, because the labor alone is under $1,500
- D. A license is required only if a building permit is pulled
Question 2
A contractor's license was not renewed by September 30 of the even-numbered renewal year. What is the license's status on October 15?
- A. Active, because renewal is not due until November 30
- B. Forfeited automatically as of October 1
- C. Suspended pending a board hearing
- D. Active with a $50 late fee assessed
Question 3
On a Hawaii public works construction contract, the government pays a proper invoice 45 days after receiving it. What interest, if any, accrues on the late payment?
- A. None, because government payments are not subject to interest
- B. Interest at the prime rate plus 2%
- C. Interest at 1.5% per month
- D. Interest at the contract rate, or 10% if none is stated
Question 4
A contractor wins a $200,000 Hawaii public works construction contract. What performance and payment security is required?
- A. None, because the contract is under $250,000
- B. A performance bond of 50% and a payment bond of 50%
- C. A performance bond of 100% and a payment bond of 100%
- D. A performance bond of 100% only
Question 5
A mechanics lien claimant last furnished labor on March 10. By when must the Application and Notice of Lien be filed in circuit court, and how long does the lien last after the Order Directing Lien to Attach is entered?
- A. 30 days after March 10; expires 6 months after the order
- B. 45 days after statutory completion; expires 3 months after the order unless enforced
- C. 90 days after March 10; expires 1 year after the order
- D. 45 days after March 10; the lien is permanent once filed
Question 6
A Hawaii contractor has one part-time employee working 10 hours a week. Which statement about workers' compensation and unemployment insurance is correct?
- A. Neither applies until the company has 5 employees
- B. Workers' comp applies but UI does not
- C. Both apply, because Hawaii's thresholds are one employee
- D. UI applies but workers' comp does not
Question 7
What is Hawaii's General Excise Tax rate on contracting income, and what county surcharge may apply?
- A. 4% state rate plus a 0.5% county surcharge where adopted
- B. 4.5% flat statewide with no surcharge
- C. 9.25% on gross income
- D. 10% on gross rental proceeds
Question 8
The RME of a licensed contracting entity becomes permanently disabled on April 1. What must the entity do?
- A. Notify the board within 60 days and qualify a new RME within 90 days
- B. Notify the board within 10 days and qualify a new RME within 30 days
- C. Cease all operations immediately until a new RME is qualified
- D. Notify the board within 90 days; no replacement deadline applies
How to use these questions
Eight questions will not get you licensed, but they show you the shape of the exam: specific numbers, specific timelines, and rules that reward precise knowledge over general impressions. Notice how many of the questions above turn on a single figure. That is the pattern to drill, because the exam is closed book and there is no looking anything up.
For real preparation, study every miss by learning the underlying rule, not by memorizing the answer. Then run a full timed set before exam day, using the closed-book study strategy.
Study sheet vs. practice quiz: what is what
This page and the free quiz do different jobs.
This page is a study sheet. Eight questions, no timer, no score. The answers stay hidden until you tap, so you can work each one slowly and read the full explanation. Use it to learn the rules.
The free quiz is the real run-through. Twelve questions, scored at the end with explanations for every answer, plus optional email results so you can track your progress. Use it to find your weak spots before exam day finds them. The full study guide also includes a 160-question bank for buyers.
Study here first, then prove it on the quiz.
Try the free practice quiz
Ready for the scored version? Take the free 12-question Hawaii Business and Law practice quiz and get your score with explanations for every answer. Start the free quiz