In the midst of recovery efforts following the August 2023 wildfires on Maui, the state Department of Commerce and Consumer Affairs last week urged property owners to prioritize hiring licensed contractors for their repair work.

With almost 4,000 properties destroyed due to the wildfires, and about $1.2 billion in combined residential property and personal motor vehicle losses paid out by insurers, Hawaii Contractors License Board Chair Neal Arita said that there will be a lot of contracting activity in the near future.

“We just want the public to be aware that licensed contractors are the way to go,” Arita said. “There’s going to be a lot of unlicensed people trying to get work.”

The appearance of storm chasers, or unlicensed individuals who reach out to property owners after natural disasters like hurricanes or storms, are not new occurrences. DCCA said it receives hundreds of tips and complaints about unlicensed contractors regarding situations like poorly done construction work or payment being taken and no construction work being done. The department also said it receives reports of unlicensed contractors cold-calling property owners and going door to door with false claims about their services.

“There will probably be more people to come in and try to get work, maybe from out of state or maybe someone who just sees the potential for getting work to be done who has some skills, but is not necessarily a licensed contractor,” Arita said. “It’s all about the money for some people.”

Contractor’s licenses are required for projects that cost over $1,500 in labor and materials, or that require a building, electrical or plumbing permit. Licensed electricians and plumbers must visibly display their licenses while working.

Licensed contractors have been properly trained, go through background checks, must comply with safety regulations, and have to have worker’s compensation and liability insurance. Property owners who use licensed contractors also have access to the Contractors Recovery Fund, a fund made up of fees collected from licensed contractors that can be used to compensate homeowners in case of issues.

Introduced this legislative session, Senate Bill 2977 would make it illegal for an unlicensed contractor to offer or conduct repairs to a property following destruction by a natural disaster in which the governor declares a state of emergency. Violators would be fined up to $10,000, face up to a year imprisonment or both.

Individuals looking to hire a contractor should consult the state’s Licensed Contractor website, where an updated list of licensed contractors and other resources are available. A contractor’s license also can be verified using DCCA’s online Business Check tool. But Arita said spreading awareness of this issue via word of mouth also is very important.

“If more people understand this, then they can watch out for one another because there’s so many people out there that need construction to be done, and I believe there’s enough contractors to get that work done,” Arita said. “There’s going to be a lot of temptation to go with the cheaper one or the one that may be unlicensed. It’s more of an awareness for the public to help one another. We’re all in it together.”

If you come across an individual practicing unlicensed contracting work, it should be reported to the Regulated Industries Complaints Office via phone at 808-587-4272 or online.