STATE OF HAWAIʻI

KA MOKU ʻĀINA O HAWAIʻI

JOSH GREEN, M.D.

GOVERNOR

KE KIAʻĀINA

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

KA ʻOIHANA PILI KĀLEPA

NADINE Y. ANDO

DIRECTOR

KA LUNA HOʻOKELE

Public Urged to be Vigilant Against Contractor Fraud Following Statewide Disaster

FOR IMMEDIATE RELEASE

April 7, 2026

HONOLULU - In the wake of recent statewide flooding and widespread property damage affecting communities across Hawaiʻi, homeowners and residents are urged to exercise caution and prioritize hiring licensed contractors for rebuilding and repair projects. The Hawaiʻi Department of Commerce and Consumer Affairs (DCCA) emphasizes the importance of choosing licensed professionals to ensure safety, adherence to building codes and proper permit acquisition.

As affected communities begin the process of recovery and rebuilding, prioritizing the engagement of licensed contractors remains imperative Significant property damage has been reported across multiple islands. With ongoing insurance claims processing, homeowners are especially vulnerable to opportunistic, unlicensed contractors seeking to take advantage of the situation.

Incidents of cold-calling landowners and attempting to take advantage of their vulnerability have been reported in the aftermath of prior disasters. Each year, DCCA receives hundreds of tips and complaints regarding unlicensed contractors. The complaints range from construction that has been poorly done, to money being taken and no work being done at all. Unlicensed contractors may also go door-to-door with deceptive or fraudulent claims to pressure consumers into procuring their services.

Homeowners should also be aware of the difference between insurance adjusters and contractors. Insurance adjusters assess damage and determine claim payouts - they do not perform repairs. Anyone who arrives at your property offering both to assess your insurance claim and perform the repair work should be treated with caution, as this may be a sign of fraud. Always verify credentials independently before agreeing to any services.

Civil penalties for unlicensed activity can include fines, and injunctive relief. Given that a home is a substantial investment, it is crucial for homeowners to invest time in researching and hiring licensed contractors. Engaging unlicensed individuals may also jeopardize homeowners' insurance policies if claims arise from faulty work.

A comprehensive list of licensed contractors in the state and additional consumer tips and resources are available on the Licensed Contractor website at http://licensedcontractor.hawaii.gov.

The public can verify a contractor's license by visiting https://businesscheck.hawaii.gov. This online tool provides information about licensed contractors, electricians and plumbers, including license status, classifications, proof of insurance and records of complaints.

Reasons to Hire a Licensed Contractor:

• A contractor's license is mandatory for projects exceeding $1,500 in labor and material or requiring a building, electrical or plumbing permit. Electrical and plumbing contractors must employ licensed electricians and plumbers to perform the actual electrical and plumbing work, respectively.
• Hiring a licensed contractor ensures proper training, experience, background checks and compliance with safety regulations.
• Licensed contractors carry workers' compensation and liability insurance, providing protection for homeowners against injuries or damage during the project.
• Licensed contractors can obtain and sign building permits and in case of issues, homeowners may access the Contractors Recovery Fund if a licensed contractor was hired.

Choosing the Right Contractor:

• General Engineering (type "A") for specialized engineering projects.
• General Building (type "B") for structures.
• Specialty (type "C") for specific skills like electrical work or roofing.

Key Considerations for Homeowners:

• On-Site Verification: Licensed electricians and plumbers are mandated by law to visibly display their licenses while on the job, providing a tangible means of verification for homeowners.
• Handyman: For smaller projects with a total cost not exceeding $1,500, including labor and materials, homeowners have the option to hire a handyman. Typically, handymen undertake minor repairs and projects described as "odd jobs" or "fix-up tasks." However, it's important to note that handymen without a contractor's license should refrain from working on projects that:
  • Exceed $1,500 in total cost,
  • Require a building, electrical, or plumbing permit,
  • Involve electrical work,
  • Involve plumbing work.

• Written Contracts: Always get a written contract before any work begins. The contract should clearly outline the scope of work, materials to be used, project timeline, total cost and payment schedule. Never pay the full amount up-front. A written contract protects you legally and ensures both parties have agreed to the same terms.

• Penalties for Unlicensed Activity: Engaging in unlicensed contracting, especially for projects exceeding the defined limits, carries serious consequences for contractors. Homeowners are strongly advised to be cautious and to consider hiring a licensed professional regardless of the project's cost.

• Reporting of Unlicensed Activity: If you come across a person or business that is engaged in or offering to do contracting work but you discover that the person or business does not hold a contractor's license, notify the Regulated Industries Complaints Office at 1-844-808-3222 or submit a complaint online at https://cca.hawaii.gov/rico/file/.

Top 10 Tips for Construction Projects.png

Unlicensed Contractors After a Natural Disaster.png

# # #