NOTICE OF INTENT TO CLAIM MECHANIC’S & MATERIALMAN’S LIEN

(“Pre-Lien Notice” / “Notice to Owner”)
State of Hawaiʻi

[// GUIDANCE: This template is drafted for use on private construction projects located in Hawaiʻi. Although Hawaiʻi lien law does not presently mandate a preliminary notice, timely service of this document is a proven risk-management practice that preserves lien rights, promotes early resolution of payment disputes, and demonstrates good-faith compliance with HRS Chapter 507. Confirm project-specific facts, licensing status, and any contractual notice requirements before issuing.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Certificate of Service & Execution Block

1. DOCUMENT HEADER

1.1 Parties.
a. “Owner” or “Reputed Owner”: [OWNER LEGAL NAME], a [ENTITY TYPE] with a principal place of business at [OWNER ADDRESS].
b. “Claimant”: [CLAIMANT LEGAL NAME], a [ENTITY TYPE] duly licensed in the State of Hawaiʻi (Contractor’s License No. [LICENSE #]) with its principal place of business at [CLAIMANT ADDRESS].
c. “General Contractor” (if Claimant is not the GC): [GC LEGAL NAME] of [GC ADDRESS].
d. “Lender/Construction Lender” (if any): [LENDER NAME] of [LENDER ADDRESS].

1.2 Property.
Street Address: [PROPERTY ADDRESS]
Tax Map Key (“TMK”) No.: [TMK #]
Legal Description: [INSERT OR ATTACH EXHIBIT A]

1.3 Contract/Order Information.
a. Original Contract/PO Date: [DATE]
b. Brief Scope of Work/Materials Supplied: [DESCRIPTION]
c. Original Contract/PO Amount: $[AMOUNT]
d. Approved Change Orders: $[AMOUNT]
e. Amount Paid To-Date: $[AMOUNT]
f. Amount Currently Due & Owing: $[AMOUNT] (“Unpaid Balance”)

1.4 Effective Date. This Notice is effective as of [DATE] (“Effective Date”).

1.5 Governing Law & Jurisdiction. Hawaiʻi lien law, Haw. Rev. Stat. § 507-42 et seq. (“State Lien Law”); exclusive forum: state courts of competent jurisdiction sitting in the circuit where the Property is located (“State Court”).

2. DEFINITIONS

For purposes of this Notice, capitalized terms have the meanings set forth below and apply equally to singular and plural forms.

“Completion” means the earlier of (i) substantial completion as defined in the Contract, or (ii) filing of an owner’s notice of completion pursuant to State Lien Law.

“Last Furnishing Date” means the most recent date on which Claimant supplied labor, services, or materials to the Property, currently estimated as [DATE].

“Notice” means this duly executed Notice of Intent to Claim Mechanic’s & Materialman’s Lien.

“Project” means the improvement to real property identified in Section 1.2.

“Work” means the labor, services, equipment, and/or materials furnished by Claimant in connection with the Project pursuant to the Contract.

3. OPERATIVE PROVISIONS

3.1 Statutory Basis. Claimant hereby gives notice pursuant to State Lien Law that it has furnished, and continues to furnish, Work to the Property and intends to assert a mechanic’s and materialman’s lien for the value of unpaid Work should full payment not be received.

3.2 Amount Claimed. As of the Effective Date, the Unpaid Balance is $[AMOUNT]. This figure is subject to adjustment for additional Work, change orders, retainage release, credits, or payments received after the Effective Date.

3.3 Timing.
a. Recommended Service Window. Claimant shall serve this Notice no later than forty-five (45) days after the Last Furnishing Date to align with the statutory lien-recording deadline.
b. Lien Filing Deadline. If the Unpaid Balance is not satisfied, Claimant may commence lien proceedings within forty-five (45) days after (i) Completion or (ii) the Owner’s recordation of a notice of completion, whichever occurs first.

3.4 Payment Demand. Owner is requested to remit the Unpaid Balance to Claimant at the address in Section 1.1(b) within ten (10) calendar days following receipt of this Notice.

3.5 Conditions Precedent. Prompt payment in full shall constitute a condition precedent to Claimant’s waiver and release of lien rights. No partial payment, conditional payment, or payment by third parties shall satisfy this condition unless expressly acknowledged in a signed lien waiver.

3.6 Reservation of Rights. Claimant expressly reserves all statutory, contractual, and equitable remedies, including without limitation the right to (i) record a mechanic’s lien, (ii) foreclose such lien, and (iii) pursue any other relief available at law or in equity.

4. REPRESENTATIONS & WARRANTIES

4.1 Claimant represents and warrants to Owner that:
a. Licensing. Claimant holds and has maintained all required state and local licenses to perform the Work.
b. Authority. The individual executing this Notice on behalf of Claimant has full authority to do so.
c. Accuracy. The information provided in this Notice is true and correct to the best of Claimant’s knowledge as of the Effective Date.

4.2 Survival. The representations and warranties in this Section 4 survive service of this Notice and any subsequent lien filing.

5. COVENANTS & RESTRICTIONS

5.1 Mutual Duty to Cooperate. Owner and Claimant agree to cooperate in good faith to (i) verify payment applications, (ii) reconcile accounting records, and (iii) facilitate prompt resolution of any disputes relating to the Unpaid Balance.

5.2 Notice Obligations. Owner shall promptly notify Claimant of (i) any change in ownership of the Property, (ii) recordation of any notice of completion, and (iii) commencement of any foreclosure or bankruptcy proceeding affecting the Property.

6. DEFAULT & REMEDIES

6.1 Event of Default. Failure of Owner to remit the Unpaid Balance within the time set forth in Section 3.4 constitutes an “Event of Default.”

6.2 Cure Period. Owner shall have five (5) calendar days after written notice of default to cure by payment in full.

6.3 Remedies. Upon an Event of Default that is not timely cured, Claimant may, without further notice, pursue one or more of the following:
a. Record a mechanic’s and materialman’s lien;
b. Petition the State Court for an expedited lien-enforcement hearing;
c. Foreclose the lien and seek sale of the Property to satisfy the indebtedness;
d. Recover reasonable attorneys’ fees, court costs, interest, and other charges recoverable under State Lien Law.

7. RISK ALLOCATION

7.1 Limitation of Liability. In any lien-enforcement action, Claimant’s recovery shall not exceed the lesser of (i) the reasonable value of the Work furnished, or (ii) the unpaid contract balance at the time of lien filing.

7.2 No Indemnification. Consistent with the metadata instructions, this Notice does not impose any indemnification obligations on either party.

7.3 Force Majeure. Delays or interruptions caused by events beyond Claimant’s reasonable control (including acts of God, governmental actions, labor disputes, or material shortages) shall extend all statutory and contractual deadlines on a day-for-day basis.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Notice and any resulting dispute are governed by the laws of the State of Hawaiʻi, without regard to conflict-of-law principles.

8.2 Forum Selection. Exclusive jurisdiction and venue lie in the state courts situated in the circuit where the Property is located.

8.3 Arbitration & Jury Trial. Per metadata, arbitration and jury-trial waivers are not applicable. All claims shall be adjudicated by the State Court.

8.4 Injunctive Relief. Claimant retains the right to seek injunctive or equitable relief, including but not limited to orders for the preservation of lien rights and the prevention of property transfer pending resolution.

9. GENERAL PROVISIONS

9.1 Amendments & Waivers. Any amendment or waiver of this Notice must be in writing and signed by Claimant.

9.2 Assignment. Claimant may assign its rights hereunder (including its claim and any resulting lien) to financing parties or successors without Owner’s consent.

9.3 Severability. If any provision of this Notice is held unenforceable, the remaining provisions shall be construed to give maximum effect to the parties’ intent.

9.4 Integration. This Notice constitutes the entire notice required (or, where not required, elected) by Claimant to preserve its lien rights and supersedes all prior oral or written communications regarding the Unpaid Balance.

9.5 Electronic Signatures. Electronic or counterparts signatures shall be deemed originals for all purposes under Hawaiʻi law, including HRS Chapter 489E (Uniform Electronic Transactions Act).

10. CERTIFICATE OF SERVICE & EXECUTION BLOCK

10.1 Service Method.
This Notice was served on each party listed below by the method indicated:

[// GUIDANCE: Hawaiʻi courts routinely accept certified mail, return-receipt requested, or personal delivery by a process server. Retain delivery receipts and sworn affidavits of service for court submission.]

10.2 Declaration.
I, the undersigned authorized representative of Claimant, declare under penalty of perjury under the laws of the State of Hawaiʻi that (i) I have read the foregoing Notice and know the contents thereof, and (ii) the same is true and correct to the best of my knowledge, information, and belief.

CLAIMANT
[CLAIMANT LEGAL NAME]

By: _______
Name: [PRINTED NAME]
Title: [PRINTED TITLE]
Date: [DATE]

NOTARY ACKNOWLEDGMENT
State of Hawaiʻi )
) ss.
[COUNTY] )

On this ___ day of _, 20_, before me personally appeared _____, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the foregoing instrument, who acknowledged that he/she executed the same in the authorized capacity therein stated, and that such execution is the act and deed of the Claimant.

Notary Public, State of Hawaiʻi
My commission expires: _______

[// GUIDANCE: Attach the legal description of the Property as Exhibit A and any supporting invoices, statements of account, or proof of last furnishing as Exhibit B. File copies in your project record immediately upon service.]