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Penalties for using an illegal construction contract in Hawaii:
- A residential contract that does not comply with Hawaii Revised Statutes § 444-25.5 has four consequences. First, the contract is void. Second, the contractor has no mechanics' lien rights. Third, the contractor has committed a deceptive act under Hawaii Revised Statutes § 480-12 and is liable for a $5,000 fine (§ 444-23). Fourth, the contractor's license can be revoked (§ 444-17-2).
- Failure to provide the disclosures required by Hawaii’s Code of Rules, Title 16, Chapter 77, Subchapter 12, § 79 § 80 can result in suspension or revocation of the contractor's license. Hawaii Revised Code § 444-17.
- Hawaii’s Contractor Repair Act, § 672E-11, requires that residential contracts include a notice of the contractor's right to repair construction defects.
- Failure to provide the roofing bond required by Hawaii Revised Statutes § 444-25.7 voids the contract, deprives the contractor of lien rights (§ 480-12) and can result in a fine of up to $5,000.
- Hawaii Revised Statutes § 431:10-222 voids any provision in a construction contract which would indemnify someone for their own sole negligence.
- Omission of any notice required by either Hawaii Revised Statutes § 481C-2(1) or (2) voids the contract and risks a fine of between $500 and $2,500.
- Omission of the disclosures required by either Hawaii Revised Statutes § 476-3 or § 476-7 (credit sale) makes the contractor liable for a 10% penalty plus attorney fees. § 476-21.
- Omission of federal truth in lending disclosures required by 15 United States Code § 1638 makes the creditor liable for both the overcharge and the debtor's attorney fees.
- Omission of disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
- Omission of insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Hawaii contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Hawaii and federal court decisions.
The contracts linked below comply with the following Hawaii and federal laws:
- Arbitration -- Hawaii Revised Statutes § 658A-23
- Attorney fees -- Hawaii Revised Statutes § 607-14
- Consumer fraud -- Hawaii Revised Statutes § 480-12
- Contractor Repair Act -- Hawaii Revised Code § 672E-1 to § 672E-13
- Differing site conditions -- Hawaii Revised Statutes § 103D-501
- Disclosure of lien rights -- Hawaii Revised Statutes § 444-25.5
- Excavation -- Hawaii Revised Statutes § 269E-7(a)
- Failure to make disclosures -- Hawaii Revised Statutes § 444-23
- Home improvement disclosures -- Hawaii’s Code of Rules, Title 16, Ch. 77, Sub. 12, § 79 and § 80
- Indemnity – Hawaii Revised Statutes § 431:10-222
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rate -- Hawaii Revised Statutes § 478-4
- Mechanics' liens -- Hawaii Revised Statutes § 507-49
- Payment bonds -- Hawaii Revised Statutes § 103-32.2.
- Payment of subcontractors on private jobs – Hawaii Revised Statutes 444-25
- Payment of subcontractors on public jobs – Hawaii Revised Statute § 103-10.5
- Penalty for failure to disclose -- Hawaii Revised Statutes § 480-12
- Retainage -- Hawaii Revised Statutes § 103-32.1
- Revocation of license -- Hawaii Revised Statutes § 444-17(2)
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Roof bond -- Hawaii Revised Statutes § 444-25.7
- Statute of limitations -- Hawaii Revised Statutes § 657-1
- Truth in lending -- 15 United States Code § 1638
- Warranty -- Code of Hawaii Rules § 16-77-97
Return to Penalties for Illegal Contracts in Hawaii.
The contracts linked below conform with current Hawaii and federal court decisions.
The contracts linked below comply with the following Hawaii and federal court decisions:
- Choice of law -- Airgo, Inc. v. Horizon Cargo Transp., 66 Hawaii 590, 1983
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Disclaimer by owner -- J. A. Thompson & Son v. State, 51 Hawaii 529 (1970)
- Disclosures -- Hiraga v. Baldonado, 96 Hawaii 365 (2000) and Toney v. Fauhiva, 109 Hawaii. 96 (2005)
- Excusable delay -- Associated Engineers & Contractors v. State, 58 Hawaii 187 (1977)
- Implied warranty -- Association of Apartment Owners v. Venture 15, Inc., 115 Hawaii 232 (2007)
- Liquidated damages – OWBR LLC v. Clear Channel Communs., Inc., 266 F. Supp. 2d 1214 (2003)
- Material breach of contract -- Golf Cards v. Mid-Pacific Country Club, 53 Hawaii 357 (1972)
- Obligation of unlicensed contractors -- Shultz v. Lujan, 86 Hawaii 137 (1997)
- Payment -- Jones v. Phillipson, 92 Hawaii 117 (1999)
- Payment for changes -- E. E. Black, Ltd. v. State, 50 Hawaii 267 (1968)
- Payment of unlicensed contractors -- Jones v. Phillipson, 92 Hawaii 117 (1999)
- Rights of third parties -- Association of Owners v. Swinerton & Walberg Co., 68 Hawaii 98 (1985)
- Statute of limitations -- Silverhorn v. Pacific Mutual Life Insurance Co., 24 Hawaii 366 (1918)
- Termination of contract by owner -- Mayer v. Alexander & Baldwin, Inc., 56 Hawaii 195 (1975)
- Warranty -- Agustin v. Dan Ostrow Construction Co., 64 Hawaii 80 (1981)
Return to Penalties for Illegal Contracts in Hawaii.
Return to construction contract laws in Hawaii.
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