CONSTRUCTION DEFECT DEMAND LETTER
STATE OF HAWAII
NOTICE PURSUANT TO HAWAII CONTRACTOR REPAIR ACT
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND REGULAR FIRST-CLASS MAIL
[DATE]
[CONTRACTOR/BUILDER NAME]
[ADDRESS]
[CITY, STATE ZIP]
Hawaii Contractor License No.: [LICENSE NUMBER]
Re: STATUTORY NOTICE OF CONSTRUCTION DEFECTS
Property Address: [PROPERTY ADDRESS]
Owner: [OWNER NAME]
Original Contract Date: [DATE]
Substantial Completion Date: [DATE]
Dear Sir or Madam:
This firm represents [OWNER NAME] ("Owner" or "Claimant") regarding construction defects at the above-referenced property. This letter constitutes formal notice of construction defects pursuant to the Hawaii Contractor Repair Act, HRS Sections 672E-1 through 672E-13, and serves as the required pre-litigation notice providing you with the statutory opportunity to inspect, offer to repair, and/or settle this claim before litigation is commenced.
THIS IS A STATUTORY NOTICE REQUIRED UNDER HAWAII LAW. YOUR TIMELY RESPONSE IS REQUIRED WITHIN NINETY (90) DAYS.
I. HAWAII-SPECIFIC LEGAL FRAMEWORK
A. Hawaii Contractor Repair Act
This notice is provided pursuant to HRS Sections 672E-1 et seq., Hawaii's Contractor Repair Act, which establishes mandatory pre-litigation procedures for construction defect claims.
Under the Act:
- The claimant must provide written notice of claimed defects at least 90 days before filing suit
- The notice must describe each alleged construction defect
- The contractor has 21 days to respond and request an inspection
- After inspection, contractor has 30 days to make offer to repair or settle
- Failure to comply with the notice requirements may affect the action
B. Statute of Limitations
Hawaii law provides the following limitations periods for construction defect claims:
| Claim Type | Limitations Period | Authority |
|---|---|---|
| Written Contract | 6 years | HRS Section 657-1 |
| Oral Contract | 6 years | HRS Section 657-1 |
| Negligence/Tort | 2 years | HRS Section 657-7 |
| Breach of Warranty | 4 years (UCC) | HRS Section 490:2-725 |
| Personal Injury | 2 years | HRS Section 657-7 |
C. Statute of Repose
HRS Section 657-8 establishes a ten (10) year statute of repose for actions against design professionals and contractors, running from substantial completion of the improvement. This is among the longest in the nation.
D. Implied Warranties in Hawaii
Hawaii recognizes the following implied warranties in residential construction:
-
Implied Warranty of Habitability: Builders impliedly warrant that new homes are suitable for habitation. Hess v. Kauhi, 67 Haw. 542, 696 P.2d 346 (1985).
-
Implied Warranty of Workmanlike Construction: Construction must be performed in a workmanlike manner. Ass'n of Apartment Owners of Newtown Meadows v. Venture 15, Inc., 115 Haw. 232, 167 P.3d 225 (2007).
-
Implied Warranty of Fitness for Intended Purpose: Home must be fit for its intended use. Silva v. Hasebe, 76 Haw. 424, 879 P.2d 517 (1994).
E. Contractor Licensing Requirements
Under HRS Section 444-1 et seq. (Contractors License Law), contractors must be licensed by the Contractors License Board. Unlicensed contractors may be subject to criminal penalties and unable to enforce contracts.
II. PROPERTY AND PROJECT INFORMATION
A. Property Description
| Item | Details |
|---|---|
| Property Address | [COMPLETE ADDRESS] |
| Island/County | [ISLAND], [COUNTY], Hawaii |
| Property Type | [ ] Single-family home [ ] Condominium [ ] Townhouse [ ] Multi-family |
| Year Built | [YEAR] |
| Square Footage | [SQUARE FEET] |
| Current Owner(s) | [NAME(S)] |
| Date of Purchase | [DATE] |
| Purchase Price | $[AMOUNT] |
B. Project Information
| Item | Details |
|---|---|
| Project Type | [ ] New construction [ ] Remodel [ ] Addition [ ] Repair |
| General Contractor | [NAME] |
| HI Contractor License No. | [NUMBER] |
| Contract Date | [DATE] |
| Contract Amount | $[AMOUNT] |
| Substantial Completion | [DATE] |
| Final Completion | [DATE] |
| Warranty Period | [DESCRIBE] |
C. Parties Involved
General Contractor:
- Name: [NAME]
- License Number: [NUMBER]
- Address: [ADDRESS]
- Contact: [PHONE/EMAIL]
Subcontractors: (List all subcontractors whose work is believed defective)
| Trade | Company Name | License No. | Work Performed |
|---|---|---|---|
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
| [TRADE] | [NAME] | [NUMBER] | [DESCRIPTION] |
III. DESCRIPTION OF DEFECTS
Pursuant to HRS Section 672E-3, the following is a detailed description of each claimed construction defect:
DEFECT #1: [TITLE - e.g., ROOF LEAKAGE]
Location: [Specific location within the property]
Description: [Detailed description of the defect, including how it manifests, when it was discovered, and any progression]
Building Components Affected:
[ ] Foundation/Slab [ ] Framing [ ] Roofing [ ] Exterior walls/Siding [ ] Windows/Doors
[ ] Plumbing [ ] Electrical [ ] HVAC [ ] Insulation [ ] Drywall/Interior finishes
[ ] Flooring [ ] Waterproofing [ ] Drainage [ ] Lanai/Deck [ ] Other: [SPECIFY]
Evidence Supporting Defect:
[Describe supporting evidence - expert reports, photographs, testing results, etc.]
Standards Violated:
[ ] Hawaii State Building Code
[ ] Manufacturer's Installation Instructions
[ ] Industry Standards (IRC, IBC, ASTM)
[ ] Contract Specifications
[ ] Implied Warranty of Workmanship
[ ] Implied Warranty of Habitability
Date First Observed: [DATE]
Estimated Cost to Repair: $[AMOUNT]
DEFECT #2: [TITLE]
[REPEAT FORMAT ABOVE FOR EACH DEFECT]
IV. SUMMARY OF DEFECTS AND DAMAGES
| Defect | Location | Est. Repair Cost | Related Damages |
|---|---|---|---|
| [DEFECT 1] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| [DEFECT 2] | [LOCATION] | $[AMOUNT] | $[AMOUNT] |
| SUBTOTAL - Repair Costs | $[AMOUNT] | ||
| Consequential Damages | $[AMOUNT] | ||
| Expert/Investigation Costs | $[AMOUNT] | ||
| Temporary Housing | $[AMOUNT] | ||
| TOTAL ESTIMATED DAMAGES | $[AMOUNT] |
V. LEGAL BASIS FOR CLAIMS
A. Breach of Contract
You failed to perform construction in accordance with the contract terms, plans, specifications, and applicable building codes.
B. Breach of Express Warranty
You provided express warranties regarding quality and durability of construction which you have breached.
C. Breach of Implied Warranty of Habitability
Under Hawaii law, builders impliedly warrant that new homes are suitable for habitation. Hess v. Kauhi, 67 Haw. 542, 696 P.2d 346 (1985).
D. Breach of Implied Warranty of Workmanlike Construction
Under Hawaii law, construction must be performed in a workmanlike manner. Ass'n of Apartment Owners of Newtown Meadows v. Venture 15, Inc., 115 Haw. 232, 167 P.3d 225 (2007).
E. Negligence
You owed a duty of care to perform construction in accordance with the applicable standard of care and breached that duty.
F. Violation of Building Codes
The construction violates the Hawaii State Building Code and/or county building codes.
VI. STATUTORY NOTICE REQUIREMENTS
A. Your Rights Under the Hawaii Contractor Repair Act
Pursuant to HRS Section 672E-4, upon receipt of this notice, you have the right to:
- Respond to Notice: Provide written response within 21 days of receiving this notice
- Inspect the Property: Request an inspection within the 21-day response period
- Offer to Repair: Make a written offer to repair within 30 days after inspection
- Offer Settlement: Make a written offer of monetary compensation
- Dispute Claims: Deny responsibility for the claimed defects in writing
B. Response Deadline
Your written response is due within TWENTY-ONE (21) DAYS of receipt of this notice.
Your response should include:
1. Whether you accept or dispute the claimed defects
2. Whether you wish to inspect the property
3. Your offer, if any, to repair or compensate
4. Any documentation supporting your position
C. Consequences of Non-Response
Failure to respond within the statutory period may result in:
- Owner proceeding directly to litigation after 90-day waiting period
- Waiver of your right to inspect and repair
- Potential adverse inference at trial
- Court may consider lack of response in awarding damages
VII. DEMAND FOR INSPECTION ACCESS
We hereby offer you the opportunity to inspect the property pursuant to the Hawaii Contractor Repair Act. To schedule an inspection:
- Contact our office in writing within 21 days
- Propose inspection dates during reasonable business hours
- Identify all persons who will attend
- Identify any experts who will participate
Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]
VIII. PRESERVATION OF EVIDENCE
You are hereby directed to preserve all documents and materials relating to the construction, including:
- All contracts and subcontracts
- Plans, specifications, and drawings
- Inspection reports and quality control records
- Correspondence with owner and subcontractors
- Photographs taken during construction
- Daily logs and progress reports
- Warranties from manufacturers
- Insurance policies and certificates
Spoliation Warning: Failure to preserve evidence may result in adverse inference instructions and sanctions.
IX. SETTLEMENT DEMAND
To resolve this matter without litigation, we demand:
Option A - Repair by Contractor:
1. Complete repair of all identified defects within [NUMBER] days
2. All repairs warranted for minimum of [NUMBER] years
3. Payment of investigation and expert costs: $[AMOUNT]
4. Payment of attorney's fees incurred to date: $[AMOUNT]
Option B - Monetary Settlement:
Payment of $[AMOUNT] within 30 days.
X. CONCLUSION
Please respond in writing within 21 days of receipt of this notice as required by HRS Section 672E-4. If we do not receive a timely response, or if the parties cannot reach resolution within the 90-day notice period, our client will proceed with litigation.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
Hawaii State Bar No. [NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [OWNER NAME]
ENCLOSURES:
[ ] Photographs of defects
[ ] Expert report(s)
[ ] Repair estimates
[ ] Copy of construction contract
[ ] Correspondence history
cc: [OWNER NAME]
[INSURANCE CARRIER]
Contractors License Board (if applicable)
HAWAII-SPECIFIC PRACTICE NOTES
Contractor Repair Act (HRS Sections 672E-1 et seq.):
- 90-day pre-suit notice required for construction defect claims
- Contractor has 21 days to respond and request inspection
- Contractor has 30 days after inspection to make written offer
- Applies to residential and commercial construction
- Mediation may be required before litigation
Implied Warranties:
- Warranty of habitability recognized for new residential construction
- Extends to subsequent purchasers within reasonable time
- Silva v. Hasebe, 76 Haw. 424, 879 P.2d 517 (1994)
Contractor Licensing:
- All contractors must be licensed under HRS Section 444-1 et seq.
- Verify license status with Department of Commerce and Consumer Affairs
- Specialty contractor licenses required for specific trades
Condominium Claims:
- Special procedures for condominium association claims
- Ass'n of Apartment Owners of Newtown Meadows v. Venture 15, Inc., 115 Haw. 232 (2007)
- Association has standing to pursue claims on behalf of owners
Discovery Rule:
- Statute of limitations may be tolled until defect discovered
- Au v. Au, 63 Haw. 210, 626 P.2d 173 (1981)
Climate Considerations:
- Hawaii's tropical climate creates unique construction challenges
- Moisture, salt air, and humidity damage common issues
- Expert testimony often critical on climate-related defects
This template is for informational purposes only and does not constitute legal advice. Consult a licensed Hawaii attorney before use.