What an RME is in construction licensing, where the title is used, and Hawaii's Responsible Managing Employee rules in depth: experience, the PSI exam, verified 2026 Board fees, residency, dual RME status and the 60 and 90 day clocks.
RME stands for Responsible Managing Employee. In construction licensing, the RME is the licensed individual whose personal qualification lets a company hold a contractor's license: the license belongs to a business, the qualification belongs to a person, and that person has to be a real employee. This guide answers the general question first, then goes deep on Hawaii, where the title is written into the statute and the rules.
Hawaii's Contractors License Board does not license companies on their own merits. Every corporation, partnership, LLC, LLP or joint venture that wants a contractor's license must qualify through a licensed individual, and Hawaii's statutory name for that individual is the Responsible Managing Employee. We cover the 2026 requirements from the Board (Department of Commerce and Consumer Affairs, Professional and Vocational Licensing Division): the experience rule, the PSI exam, verified Board fees, and the 60 day and 90 day clocks that run when an RME and a company part ways.
At a glance
- Who issues it: Hawaii's Contractors License Board (Department of Commerce and Consumer Affairs, Professional and Vocational Licensing Division)
- Experience: 4 years of supervisory experience within the past 10 years in the classification you are applying for
- Exam: PSI Services, LLC; Part I is Business and Law, Part II is trade knowledge in your classification; every part needs 75 percent
- Fees: the $50 application fee, a $260 license fee, plus exam fees paid to PSI ($85 for the A or B examination, $80 for every other examination)
- If the RME leaves: notify the Board within 60 days; within 90 days qualify a new RME or go inactive, or the license is forfeited automatically
What an RME is: the general answer
An RME holds a license in their own name and uses it to qualify an employer. The employer's license rides on the RME's credential, and the RME is responsible for the work performed under it. In every program that uses the title, the RME must be employed by the company, not merely associated with it, and the license structure collapses when the employment ends. The exact rules depend on the agency.
| Program | Who must have an RME | The rule that defines the role |
|---|---|---|
| Hawaii Contractors License Board | Every corporation, partnership, joint venture, LLC or LLP with a contractor's license | A bona fide employee who qualifies the entity in the classifications they hold; four years of supervisory experience; the principal RME lives in Hawaii (HAR 16-77-3, 16-77-18, 16-77-71) |
| California Contractors State License Board | A company that does not qualify through an owner or officer (the RMO) | A bona fide employee working at least 32 hours per week or 80 percent of operating hours; one active license at a time; a $25,000 qualifying individual's bond; 90 days to replace a departed qualifier (BPC 7068, 7068.2 and 7071.9) |
| Texas State Fire Marshal's Office | Registered fire sprinkler contractors | RME-General, RME-Dwelling, RME-Underground and RME-General Inspector licenses, issued only once the person is employed by a registered company |
| Arkansas Fire Protection Licensing Board | Fire sprinkler firms | The RME plans and oversees sprinkler systems and may act as an inspector |
| Nevada Housing Division, Manufactured Housing | Manufactured housing dealers and servicepersons | RME licenses attach to a dealer or serviceperson license; $250 renewal with 8 hours of continuing education every two years |
RME, RMO and qualifying agent: the same job, different labels
Every state that licenses businesses needs a person to stand behind the license. Florida calls that person a qualifying agent. California splits the role: the Responsible Managing Officer (RMO) is an owner or officer, the RME is not. Hawaii uses only the RME, owner or not.
The pattern holds everywhere: the business needs a qualified individual, formally attached, actually responsible. Our guide to the qualifying agent versus the responsible managing employee breaks down the terminology state by state, our national qualifying agent overview explains the role from the owner's side, and the contractor license pillar covers licensing from state to state.
The RME in Hawaii: the short answer
HAR 16-77-3 defines the Responsible Managing Employee as "the individual who is a bona fide employee of the contracting entity that maintains a current contractor's license, and who qualifies the contracting entity for a contractor's license in the licensed classifications held by the individual." The statute behind it, HRS 444-11(a)(7), bars a license to any partnership or corporation unless its business is under the direct management of an employee, partner or officer who holds an appropriate license.
The RME holds a personal contractor's license in one or more classifications: General Engineering "A," General Building "B," or a specialty "C" classification such as C-13 Electrical. An "A" licensee automatically holds 17 specialty classifications and a "B" licensee holds 10 (HAR 16-77-32). Our Hawaii contractor license guide covers the entity side.
Who can become an RME in Hawaii
The Board's current RME application packet (form CT-35, revised October 2025) lists the core requirements. To be licensed as an RME you must:
- Be at least 18 years of age
- Have a good reputation for honesty, truthfulness, financial integrity and fair dealing
- Have 4 years of supervisory experience within the past 10 years in the classification you are applying for
- Pass the licensing examination in the appropriate classification
- Be employed by a licensed contracting entity
That last requirement defines the role. You do not get an RME license in the abstract; it connects a qualified supervisor to a specific contracting business, as its employee.
The experience requirement in practice
HAR 16-77-18 requires "not less than four years of supervisory experience as a foreman, supervising employee, or contractor in the particular classification" within the ten years before filing. A supervisor with four years running electrical crews qualifies for the C-13 electrical classification, not for General Building. Training may count for at most one year (HAR 16-77-19), and Hawaii has no reciprocity.
Hawaii's electrical trade has its own individual licensing ladder under HRS chapter 448E; our Hawaii electrician license guide covers it, including why an electrician's license alone does not let you contract, and under HRS 444-9.5 a contractor whose RME is not a 448E licensee must employ 448E licensees to perform the electrical or plumbing work. Plumbing works the same way, in our Hawaii plumbing license guide. HVAC does not: as our Hawaii HVAC license guide explains, the state licenses no HVAC individuals, so the contractor license and its RME are the entire credential.
Documentation is where most applications slow down. Every RME applicant submits a Chronological History of Projects form (the "Project List") detailing four full years of supervisory work: project start and end dates, the employer, the employer's license classification, your position title, the number of workers you supervised, and a detailed description of the work you personally supervised. The experience must also be certified by at least three notarized certificates from employers, fellow employees or journeymen with direct knowledge of your supervisory role, with their own license numbers where applicable.
Step by step: from application to RME license
Hawaii's Board runs on a monthly cycle, and the calendar matters.
- File your application with the $50 non refundable application fee so it is received in the Board's Honolulu office on or before the first Tuesday of the month prior to the scheduled meeting date. The packet says the Board is scheduled to meet once a month except December, but the posted 2026 schedule lists a December 18 meeting and shows the March, April, June and July meetings cancelled, so check the calendar before you count on a date.
- The Board reviews complete applications the following month and notifies you of approval, disapproval or deferral.
- Register with PSI and pay the exam fees to the vendor. Hawaii's contractor examinations have been administered by PSI Services, LLC since January 2023. DCCA's own forms, including the October 2025 revision, still name Prometric; the Board's live examination page names PSI. Use PSI.
- Take the two part exam: Part I is Business and Law, Part II is trade knowledge in your classification. Every part needs 75 percent (HAR 16-77-44). Pass within six months of approval or file a new application and fee (HAR 16-77-45).
- Pass, then complete license requirements. The Board notifies you of the remaining fees and issues the license. Under HRS 436B-9 an unfinished application is abandoned and destroyed after one year; the packet counts that year from filing, the statute from the Board's written notice to you.
| Exam (PSI, Hawaii) | Questions | Passing score |
|---|---|---|
| Part I, Business and Law | 80 | 75 percent |
| Part II, A General Engineering | 100 | 75 percent |
| Part II, B General Building | 80 | 75 percent |
| Part II, C-13 Electrical | 40 | 75 percent |
| Part II, C-42 Roofing | 50 | 75 percent |
| Exam (PSI, Hawaii) | Time | Format |
|---|---|---|
| Part I, Business and Law | 180 minutes | Closed book, NASCLA Hawaii edition |
| Part II, A General Engineering | 240 minutes | Closed book |
| Part II, B General Building | 240 minutes | Closed book |
| Part II, C-13 Electrical | 120 minutes | National Electrical Code 2020 provided at the test center |
| Part II, C-42 Roofing | 120 minutes | Closed book |
Start to finish, a clean application typically spans several months because of the monthly cycle. Miss a first Tuesday deadline and you wait a month.
Fees, verified 2026
Figures come from the October 2025 application packet, the PSI bulletin dated January 20, 2026, and the Board's renewal fee box for the October 1, 2026 to September 30, 2028 period.
| RME fee | Amount | Paid to |
|---|---|---|
| Application fee, non refundable, per application | $50 | Board |
| Exam fee, A General Engineering or B General Building examination | $85 | PSI |
| Exam fee, every other examination | $80 | PSI |
| License fee at issuance | $260 | Board |
| Compliance resolution fund assessment | $148, or $74 for licenses issued in the second half of the licensing period | Board |
| Biennial renewal, active RME | $208.00 by September 30 of every even numbered year | Board |
| Biennial renewal, inactive | $160.00 | Board |
| Restoration of a forfeited license | $258.00 active, $210.00 inactive | Board |
Exam fees are not refundable or transferable and are valid for one year from the date of payment. The entity you qualify files its own application and pays its own fees, including a $260 license fee and $338.00 at each renewal. Fees are set by the Board and the vendor and change; verify the current amounts with the Contractors License Board (cca.hawaii.gov/pvl) and PSI before you file.
The rules that make "Employee" the operative word
Hawaii is unusually explicit about what happens when the RME relationship ends.
If the RME leaves the company
Under HAR 16-77-64 and the Board's maintain entity rules, if the Responsible Managing Employee leaves the contracting entity for any reason, the entity must notify the Board within 60 days. Then, within 90 days of the RME leaving, the entity must do one of three things:
- File an application to qualify a new RME
- Appoint an appropriate licensed RME, or
- File an application to place the license on inactive status
Miss the window and the consequence is not a fine or a warning. The entity's license is forfeited automatically, without a hearing. An entity that files a timely application for a new RME may keep operating until the Board rules, but may not bid on or enter new contracts until it does.
The RME has mirror obligations
An RME who leaves must also notify the Board within 60 days, and within 90 days must apply to become a contracting entity, obtain employment with another contracting entity, or place their own license on inactive status. Fail to act and the RME's individual license is automatically forfeited too (HAR 16-77-64(f) and (g)). The license is the employment relationship, and when the employment ends both halves are on a clock. The tie runs the other way as well: under HAR 16-77-75 an RME's license may be suspended, revoked or forfeited when the entity's is, and a lapse in the entity's liability or workers' compensation insurance forfeits the entity's license automatically under HRS 444-11.1, with the Board's packet adding that the RME license goes with it and that both apply as new applicants if coverage is not reinstated within 60 days.
The residency rule and the principal RME's duties
Hawaii Administrative Rules require that the principal RME be in residence in Hawaii while the contracting entity's license is in effect or a project is under construction (HAR section 16-77-71). A mainland supervisor who never sets foot in the islands cannot anchor a Hawaii contracting license. For mainland companies expanding to Hawaii, this is frequently one of the biggest planning constraints.
The same rule says the principal RME must secure full compliance with chapter 444, sign or initial every contract, know every project, with records kept of the principal RME's time and payroll, and is held responsible for any violation. An entity may employ more than one RME but designates a principal on form CT-26; the others are subordinate RMEs. An RME who signs a contract for anyone but the employing entity is engaging in unlicensed activity (16-77-71(c)).
Can one RME qualify more than one company?
Only in narrow circumstances. HAR 16-77-72 and the entity application allow "dual" RME status only where the applicant documents common ownership of at least 51 percent of the equity of each contracting entity, one entity is a subsidiary or joint venture of the other, or a direct immediate family relationship between the RME and the officers, directors, members, managers or partners of the other entity, and the Board is satisfied that dual status is in the public interest.
Outside those situations, one RME anchors one company, and under HAR 16-77-73 no license is transferable. That rule exists for the same reason the 60 and 90 day rules exist: Hawaii does not want qualifiers spread across unrelated companies in name only. The RME is supposed to be genuinely responsible for the work.
Renewal, restoration and inactive status
All Hawaii contractor licenses expire on September 30 of each even numbered year (HRS 444-15, HAR 16-77-50). A license not renewed by then is forfeited as of October 1. It can be restored within 60 days of expiration, which the rule states as on or before November 30, by filing the renewal with a penalty; after that the holder applies as a new applicant. An RME who wants to pause goes inactive on form LB-51, may not contract while inactive (HRS 444-15), and reactivates with an application, the application fee and a current credit report (HAR 16-77-56).
The legitimate path: a real W-2 relationship
Hawaii's "Responsible Managing Employee" is one of the clearest statutory versions of the individual qualifier a contracting business needs in most licensing states. An RME who does not live in the state, does not sign the contracts and does not appear in the payroll records is not an RME under 16-77-71, and the entity's license has no foundation. So the compliant structure in Hawaii is the one the rule names: a bona fide employee. The RME is a full time W-2 employee of the entity, with real supervisory responsibility for the work performed under the classifications they hold, whose wages, payroll taxes and workers' compensation coverage come from that employer, exactly as HAR 16-77-3 defines an employee.
That is precisely the model The Licensing Company places nationwide. Founders Marshall Schofield and Jeremiah Jaskulski built the company around one rule: we connect contracting businesses that need a qualifier with licensed professionals who join as full time W-2 employees and actually supervise the work, never on a percentage deal and never per project. In a state where the qualifier is literally titled "Responsible Managing Employee" and the Board forfeits licenses over broken employment relationships, the W-2 structure is the only structure the law contemplates.
Hawaii requires the qualifier by statute: HRS 444-11(a)(7) bars a license to any corporation or partnership whose business is not under the direct management of a licensed employee, partner or officer, and the entity application says an entity cannot be issued a license without an RME in its employ. If your Hawaii company needs that person, or your RME has given notice and the 60 day clock has started, hire a qualifying agent and we will scope the classification, the residency question and the timeline with you.
- If you hold a Hawaii contractor license and want to put it to work as an RME: become a qualifying agent
- For the entity side of the license: Hawaii contractor license
- For state by state requirements: browse our state guides or the contractor license pillar
Frequently asked questions
What does RME stand for, and what does an RME do?
RME stands for Responsible Managing Employee: the licensed person whose qualification allows a company to hold a contractor's license, and who is responsible for the company's work under it.
What is an RME in California?
A qualifying individual who is not an owner or officer (those qualify as the RMO). The RME must be a bona fide employee working at least 32 hours per week or 80 percent of operating hours, may qualify only one active license at a time, and posts a $25,000 qualifying individual's bond. If the RME leaves, the company has 90 days to replace the qualifier or the license is suspended.
How much does it cost to get an RME license in Hawaii?
The Board's verified 2026 charges are the $50 application fee, a $260 license fee, and the compliance resolution fund assessment ($148 full period / $74 half period), plus exam fees paid to PSI ($85 for the A or B examination, $80 for every other examination). The bigger cost question is what it takes to bring a qualified RME onto payroll, which varies with the classification and the market for licensed supervisors. There is no one size number; request a consultation and we will scope it.
How long does it take to become an RME?
Plan in months, not weeks. Applications are due the first Tuesday of the month before a board meeting, the Board reviews the following month, and exam registration and testing add another cycle. A complete application without deferral typically spans three to five board cycles, and you must pass both exam parts within six months of approval.
What happens to our jobs if our RME quits mid project?
The entity has 60 days to notify the Board and 90 days to qualify a replacement RME or go inactive; blow the deadline and the license forfeits automatically. File for a replacement in time and you may finish work under contract while the Board decides, but not bid or sign new contracts. Start the replacement search immediately; it is the single most common reason businesses come to us.
Does the RME have to live in Hawaii?
The principal RME must be in residence in Hawaii while the entity's license is in effect or a project is under construction, per HAR 16-77-71. Remote qualification from the mainland does not satisfy the rule.
Is an RME the same as a qualifying agent?
Functionally yes. "Qualifying agent" is the generic (and Florida statutory) term for the licensed individual who qualifies a contracting business; RME is Hawaii's version, with Hawaii's employment, residency and replacement rules attached. See our comparison of qualifier terminology across states.
Sources
- Hawaii Contractors License Board, home page and renewal fee box (retrieved 2026-09-24)
- Hawaii Contractors License Board, examination page (retrieved 2026-09-24)
- Hawaii Contractors License Board, Maintain Entity, RME Requirements (retrieved 2026-09-24)
- Hawaii Contractors License Board, forms page and 2026 meeting schedule (retrieved 2026-09-24)
- RME application packet, form CT-35 rev 10/25 (retrieved 2026-09-24)
- Entity application packet, forms CT-00 and CT-01 rev 10/25 (retrieved 2026-09-24)
- Contractor Frequently Asked Questions, 7/9/18 (retrieved 2026-09-24)
- Hawaii Administrative Rules, Title 16, Chapter 77, sections 16-77-3, 16-77-18, 16-77-19, 16-77-32, 16-77-44, 16-77-45, 16-77-50, 16-77-51, 16-77-56, 16-77-64, 16-77-70 to 16-77-73 and 16-77-75 (retrieved 2026-09-24): Hawaii Administrative Rules, Chapter 77 and Cornell Legal Information Institute, 16-77-71
- Hawaii Revised Statutes 436B-9, 444-7, 444-9.5, 444-11, 444-11.1 and 444-15 (retrieved 2026-09-24; mirrored at codes.findlaw.com when capitol.hawaii.gov blocks a fetch): HRS 444-11 and HRS 444-15
- PSI Services LLC, Hawaii Contractor Examinations Candidate Information Bulletin, 1/20/2026 (retrieved 2026-09-24)
- California CSLB, Before Applying for the Examination, and Application for Replacing the Qualifying Individual (retrieved 2026-09-24)
- California Business and Professions Code 7068, 7068.1, 7068.2 and 7071.9 (retrieved 2026-09-24): BPC 7068.2 and BPC 7071.9
- Texas State Fire Marshal's Office, fire sprinkler license and test information (retrieved 2026-09-24)
- O*NET OnLine, Fire Sprinkler RME license cards, Texas and Arkansas (retrieved 2026-09-24)
- Nevada Housing Division, RME License Renewal (retrieved 2026-09-24)
Talk to us about your Hawaii RME
Whether your company needs a Responsible Managing Employee, your RME just gave notice and the 60 day clock is running, or you hold a Hawaii license and want to put it to work as a full time employee, call 615-219-2110 or hire a qualifying agent to start the conversation.
Requirements, fees and procedures are set by the Hawaii Contractors License Board and its testing vendor and are subject to change. Verify current requirements with the DCCA Professional and Vocational Licensing Division (cca.hawaii.gov/pvl) before applying. This article does not constitute legal advice.
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.