Construction Defect Demand Letter - Hawaii

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 alleged construction defects at the above-referenced residential dwelling or premises. This letter is the Claimant's written notice under the Hawaii Contractor Repair Act, HRS Chapter 672E, and provides the statutory opportunity to offer settlement without inspection or to propose an inspection before an action is filed.

THE CLAIMANT IS SERVING THIS NOTICE AT LEAST NINETY (90) DAYS BEFORE FILING AN ACTION. YOUR WRITTEN RESPONSE UNDER HRS SECTION 672E-4 IS DUE WITHIN THIRTY (30) DAYS AFTER SERVICE.

I. HAWAII-SPECIFIC LEGAL FRAMEWORK

A. Hawaii Contractor Repair Act

Chapter 672E applies to actions alleging construction defects in a covered residential dwelling or premises, including single-family houses, duplexes, multi-family units, common areas, and associated systems or improvements. It does not apply to an action that includes a claim for personal injury or death. "Service" means personal service or delivery by certified mail, return receipt requested, to the addressee's last known address. See HRS Sections 672E-1 and 672E-2.

The current statutory sequence is:

B. Statute of Limitations

The correct filing period depends on the cause of action and accrual facts. Potentially relevant periods include:

C. Statute of Repose

Under HRS Section 657-8, a covered action—whether in contract, tort, statute, or otherwise—arising from a construction-related deficiency or neglect may not be commenced more than ten years after the date of completion. This outer limit does not extend shorter periods under HRS Chapter 657, including Sections 657-1 and 657-7.

Substantial completion occurs upon the earlier of a certificate of occupancy or the filing of an affidavit of publication and notice of completion under HRS Section 507-43(f). "Date of completion" means substantial completion or abandonment. When a project has multiple buildings or improvements, each is measured separately. Section 657-8 excludes specified claims based on an owner or interested person's negligent repair or maintenance and a surveyor's own boundary-survey errors, and it does not limit products-liability law.

D. Contractor Licensing and Home Contracts

HRS Section 444-9 requires a person within Chapter 444's scope to obtain the applicable contractor license. For licensed contractors performing home construction or improvements, HRS Section 444-25.5 requires a written, signed contract executed before work and containing the specified homeowner disclosures, including notice of the Chapter 672E process. Statutory exemptions and the contractor's particular license classifications must be checked for the project.

II. PROPERTY AND PROJECT INFORMATION

A. Property Description

B. Project Information

C. Parties Involved

General Contractor:

• Name: [NAME]
• License Number: [NUMBER]
• Address: [ADDRESS]
• Contact: [PHONE/EMAIL]

Subcontractors: (List all subcontractors whose work is believed defective)

III. DESCRIPTION OF DEFECTS

Pursuant to HRS Section 672E-3, each claim below identifies the alleged defect or problem and describes in detail the circumstances and resulting damage. A general statement that a defect may exist is insufficient. Available evidence obtained by the Claimant—including expert reports, photographs, video, and testing—is identified or enclosed.

DEFECT #1: [TITLE - e.g., ROOF LEAKAGE]

Location: [Specific location within the property]

Description and Circumstances: [Identify the specific condition, location, manifestation, date first observed, progression, and resulting damage]

Alleged Nature and Cause: [State the known or suspected cause and supporting basis; do not speculate]

Necessary Repair or Replacement: [Describe the nature and extent of work believed necessary]

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]

Available Evidence:
☐ Expert report ☐ Photographs ☐ Video ☐ Testing results ☐ Repair estimate ☐ Other: [SPECIFY]

[Identify each enclosed or available item and the date obtained]

Standards Violated:
☐ Specifically identified state or county building-code provision
☐ Manufacturer's Installation Instructions
☐ Identified industry standard
☐ Contract Specifications
☐ Express written warranty
☐ Approved plans or permit requirements

Date First Observed: [DATE]

Estimated Cost to Repair: $[AMOUNT]

DEFECT #2: [TITLE]

[REPEAT FORMAT ABOVE FOR EACH DEFECT]

IV. SUMMARY OF DEFECTS AND DAMAGES

V. CLAIMED FAILURES AND THEORIES

The following should be retained only to the extent supported by the agreement, project records, facts, and law after review by Hawaii counsel.

A. Breach of Contract

Claimant alleges that you failed to perform the work in accordance with identified contract terms, plans, specifications, and approved change orders: [DESCRIBE].

B. Breach of Express Warranty

Claimant alleges breach of the following express written warranty terms: [QUOTE OR ATTACH TERMS AND DESCRIBE BREACH].

C. Negligent Design, Construction, Supervision, or Observation

Claimant alleges that the following conduct departed from an applicable duty and caused property damage: [IDENTIFY CONDUCT, DUTY, CAUSATION, AND DAMAGE].

D. Identified Code, Plan, or Installation Deviation

Claimant alleges the work deviates from the following specifically identified adopted code provision, approved plan, permit requirement, manufacturer instruction, or applicable standard: [IDENTIFY AND EXPLAIN MATERIAL EFFECT].

VI. STATUTORY NOTICE REQUIREMENTS

A. Contractor's Initial Response

Under HRS Section 672E-4, within thirty (30) days after service you shall serve the Claimant and any other contractor that received the notice with a written response that either:

1. Offers to settle without inspection through a monetary payment, repairs, or both; or
2. Proposes to inspect the dwelling or premises that is the subject of the claim.

A written rejection, or failure to make either response within 30 days, constitutes rejection of the claim under Section 672E-4(a).

B. Response Deadline

Your written response is due within THIRTY (30) DAYS after service of this notice.

Your response should include:

1. Whether you offer monetary payment, repairs, or both without inspection; or
2. Whether you propose an inspection under HRS Section 672E-4(b)(2); and
3. The address and contact information for statutory communications.

C. Inspection and Post-Inspection Process

If you propose an inspection, the Claimant has 30 days to accept. The inspection is to occur within 30 days after acceptance unless the parties agree to a later date. Reasonable access during normal working hours will be provided for inspection, documentation, and necessary testing. An association governed by HRS Chapter 514B has 45 days to provide access; inaccessible individual units receive a reasonable additional period. All inspection and testing must conclude within nine months after the contractor's inspection request unless the parties agree or the court orders otherwise.

Within 14 days after inspection and testing, you shall serve a written offer to remedy at no cost, a monetary offer, a combined offer, or a statement that you will not proceed further. A repair offer must describe the proposed work and completion timetable. The Claimant generally has 30 days to accept or reject an offer; an association has 45 days. An offer must state that failure to respond within the applicable period means rejection. See HRS Sections 672E-4 and 672E-5.

D. Settlement Offers and Mediation

After service of this notice, either party may serve a settlement offer under HRS Section 672E-6. A subsequent offer is deemed withdrawn if not accepted within ten days after service. If a later judgment or award is not more favorable than an offer, the offeree must pay the offeror's post-offer costs.

If the claim is not resolved under Sections 672E-5 or 672E-6, all parties must attempt mediation once. Mediation must be completed within 12 months after filing of the notice of claim unless the parties agree or the court orders otherwise. See HRS Section 672E-7.

E. Deadline-Preservation Procedure

If a limitations or repose period would expire after service but before this process concludes, HRS Section 672E-8 permits filing no more than six months before the deadline; the action is immediately stayed for the repair opportunity or mediation. The section does not revive a period that expired before service of the notice.

VII. DEMAND FOR INSPECTION ACCESS

If your timely written response proposes an inspection under HRS Section 672E-4(b)(2), please provide:

1. Proposed inspection dates during normal working hours
2. The areas, components, dwellings, or units to be inspected
3. The names and roles of persons who will attend
4. The proposed scope and method of any testing, including destructive testing

Contact Information:
[LAW FIRM NAME]
[ADDRESS]
[PHONE]
[EMAIL]

VIII. PRESERVATION OF EVIDENCE

Please preserve documents and materials relating to the construction and the claimed conditions, 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

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, if recoverable by contract or law: $[AMOUNT]

Option B - Monetary Settlement:
Payment of $[AMOUNT] within [NUMBER] days after written acceptance.

X. CONCLUSION

Please serve your written response within 30 days after service as required by HRS Section 672E-4. If the claim is not resolved, the parties will follow the remaining Chapter 672E procedures, including the one-time mediation requirement. Claimant reserves all rights and will use HRS Section 672E-8's filing-and-stay procedure if necessary to preserve a claim approaching an applicable deadline.

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

• Scope: Chapter 672E covers construction-defect actions involving residential dwellings or premises as defined in Section 672E-1. Do not use this form as a Chapter 672E notice for a purely commercial project or an action that includes personal-injury or death claims without Hawaii counsel's review.
• Service proof: Preserve the certified-mail return receipt or personal-service proof and calculate every deadline from the service date.
• Notice detail: Identify each defect, circumstances, damage, available cause information, and proposed repair. Attach available claimant-obtained expert reports, photographs, video, and testing.
• Later testing: After notice, give reasonable advance notice and an opportunity for the contractor to observe claimant testing under Section 672E-3(e).
• Associations: Association access and offer-response periods differ from individual-claimant periods. If a claim covers multiple dwellings or units, Section 672E-4 permits inspection of each dwelling or unit.
• Offers: Calendar both the 30/45-day initial-offer response period and the ten-day period for later offers. Section 672E-6 can shift post-offer costs.
• Mediation: Unresolved parties must attempt mediation once and ordinarily complete it within 12 months after filing the notice.
• Limitations: The Chapter 672E process does not itself revive an expired claim. Analyze Sections 657-1, 657-7, 657-8, and any claim-specific rule immediately.
• Licensing: Verify the contractor and relevant trade classifications through Hawaii DCCA's BusinessCheck before alleging a licensing violation.

SOURCES AND REFERENCES

• HRS Chapter 672E — Contractor Repair Act
• HRS Section 672E-3 — Notice of claim
• HRS Section 672E-4 — Response, inspection, and offer procedure
• HRS Sections 672E-6 through 672E-8 — Offers, mediation, and deadline exception
• HRS Chapter 657 — Limitations of Actions
• HRS Section 444-9 — Licenses required
• HRS Section 444-25.5 — Home-construction disclosures and contracts
• Act 308 (2025), HB 420 CD1
• Hawaii DCCA BusinessCheck

This template is for informational purposes only and does not constitute legal advice. Consult a licensed Hawaii attorney before use.