Hawaii Revised Statutes, Chapter 672E — Contractor Repair Act

chapter-672eHaw. Rev. Stat. ch. 672ECode1 de jan. de 2004

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Division 4. Courts and Judicial Proceedings — Title 36. Civil Remedies and Defenses and Special Proceedings

Hawaii Revised Statutes as published by the Hawaii State Legislature (files updated 1/5/2026 7:15 PM).

Division 4 Courts and Judicial Proceedings

Title 36 Civil Remedies and Defenses and Special Proceedings

Chapter 672E Contractor Repair Act

§672E-1 Definitions

The following terms, whenever used in this chapter, shall have the following meanings, unless a different meaning clearly appears in context:

"Action" means any civil proceeding, including but not limited to arbitration, in which damages or other relief may be awarded or enforced with respect to an alleged construction defect.

"Association" means a nonprofit, incorporated, or unincorporated organization upon which responsibilities are imposed and authority is granted in the organization's declaration or bylaws.

"Claim" means any notice of claim by a claimant to a contractor of a construction defect.

"Claimant" means any person, entity, partnership, corporation, or association asserting a claim concerning an alleged construction defect.

"Common area" means real property within a planned community that is owned or leased by the association or is otherwise available for the use of its members or designated as common area in or pursuant to the association's declaration or bylaws.

"Construction defect" means a deficiency in, or arising out of, the design, specifications, surveying, planning, construction, supervision, or observation of construction of a dwelling or premises.

"Contractor" means any person, firm, partnership, corporation, association, or other organization that is engaged in the business of designing, manufacturing, supplying products, developing, or constructing a dwelling.

"Dwelling" means a single-family house, duplex, or multi-family unit designed for residential use, including common areas and improvements that are owned or maintained by an individual, association, or other entity.

"Mediation" means a process in which a mediator facilitates communication and negotiation between parties to assist them in reaching a voluntary agreement regarding their dispute.

"Planned community" means a common interest community, including condominiums and cooperative housing corporations, and excluding time share plans.

"Premises" means a dwelling, including common areas and improvements that are owned or maintained by any person, firm, partnership, corporation, association, or other organization. "Premises" includes the systems, other component improvements, other structures, or recreational facilities appurtenant to, but not necessarily a part of, the dwelling or facility.

"Service" means personal service or delivery by certified mail, return receipt requested, to the last known address of the addressee.

[L 2004, c 119, pt of §2; am L 2007, c 22, §2]

§672E-2 Applicability.]

All claimants filing an action alleging construction defects shall comply with this chapter; provided that this chapter shall not apply to any actions that include claims for personal injury or death.

[L 2004, c 119, pt of §2]

§672E-3 Notice of claim of construction defect

(a) A claimant, no later than ninety days before filing an action against a contractor, shall serve the contractor with a written notice of claim. The notice of claim shall:

(1) State that the claimant asserts a claim against the contractor for a construction defect in the design, construction, or remodeling, or any combination thereof, of a dwelling or premises; and

(2) Describe the claim in detail sufficient to determine the circumstances constituting the alleged construction defect and damages resulting from the construction defect. The description shall specifically identify the alleged defect or problem; provided that a general statement that a construction defect may exist shall be insufficient.

The notice of claim shall not constitute a claim under any applicable insurance policy and shall not give rise to a duty of any insurer to provide a defense under any applicable insurance policy unless and until the process described in section 672E-5 is completed. Nothing in this chapter shall in any way interfere with or alter the rights and obligations of the parties under any liability policy.

(b) If available to the claimant, the claimant shall provide to the contractor, with the notice of claim, evidence that depicts the nature and cause of the construction defect and the nature and extent of the repairs necessary to repair the defect, including the following information if obtained by the claimant: photographs, videotapes, and any testing performed.

(c) A contractor served with a written notice of claim shall serve any other appropriate subcontractor with notice of the claim. The contractor's notice shall include the claimant's written notice of claim.

(d) After serving the notice of claim, a claimant shall give to the contractor reasonable prior notice and an opportunity to observe if any testing is done.

[L 2004, c 119, pt of §2; am L 2025, c 308, §2]

§672E-4 Rejection of claim; opportunity to repair construction defect

(a) The contractor rejects a claimant's claim of construction defects by:

(1) Serving the claimant with a written rejection of the claim; or

(2) Failing to respond pursuant to subsection (b)(1) or (2) to the notice of claim within thirty days after service.

(b) The contractor, within thirty days after service of the notice of claim, shall serve the claimant and any other contractor that has received the notice of claim with a written response to the alleged construction defect that:

(1) Offers to settle without inspecting the construction defect by:

(A) Monetary payment;

(B) Making repairs; or

(C) Both subparagraphs (A) and (B); or

(2) Proposes to inspect the premises of the alleged construction defect that is the subject of the claim.

(c) Within thirty days following any proposal for inspection under subsection (b)(2), the claimant shall accept a contractor's proposal to inspect. After accepting the contractor's proposal to inspect, the claimant and contractor shall agree on a time and date for the inspection, which shall occur within thirty days of the claimant's acceptance of the contractor's proposal to inspect, unless the claimant and contractor agree to a later date. The claimant shall provide reasonable access to the dwelling or premises during normal working hours to:

(1) Inspect the premises;

(2) Document any alleged construction defects; and

(3) Perform any testing required to evaluate the nature, extent, and cause of the asserted construction defect, and the nature and extent of any repair or replacement that may be necessary to remedy the asserted construction defect;

provided that if the claimant is an association under chapter 514B, the claimant shall have forty-five days to provide access. If access to an individual condominium unit is necessary, and the association is unable to obtain access, then the association shall have a reasonable time to provide access. If destructive testing is required, the contractor shall give advance notice of tests and return the premises to its pre-testing condition. If inspection or testing reveals a condition that requires additional testing to fully and completely evaluate the nature, cause, and extent of the construction defect, the contractor shall provide notice to the claimant of the need for additional testing. The claimant shall provide additional access to the dwelling or premises. If a claim is asserted on behalf of owners of multiple dwellings, or multiple owners of units within a multi-family complex, the contractor shall be entitled to inspect each of the dwellings or units.

(d) Inspections and testing performed pursuant to this section shall be completed within nine months of the contractor's request to inspect, unless the parties agree or the court orders otherwise.

(e) Within fourteen days following the inspection and testing, the contractor shall serve on the claimant a written:

(1) Offer to fully or partially remedy the construction defect at no cost to the claimant. The offer shall include a description of construction necessary to remedy the construction defect and a timetable for the completion of the additional construction;

(2) Offer to settle the claim by monetary payment;

(3) Offer for a combination of repairs and monetary payment; or

(4) Statement that the contractor will not proceed further to remedy the construction defect.

(f) Upon receipt of the offer made under subsection (b)(1) or (e)(1), (2), or (3), the claimant may, within thirty or forty-five days, whichever applies pursuant to section 672E-5(a), accept the offer and authorize the contractor to proceed with any repairs offered under subsection (b)(1) or (e)(1) or (3), or deny the offer.

(g) Any offer of settlement under this section shall reference this section, and shall state that a claimant's failure to respond with a written notice of acceptance or rejection within thirty or forty-five days, whichever applies pursuant to section 672E-5(a), shall mean that the offer is rejected. Failure to serve a written offer or statement under this section shall be deemed a statement that the contractor will not proceed further.

[L 2004, c 119, pt of §2; am L 2008, c 28, §40; am L 2017, c 181, §44; am L 2025, c 308, §3]

§672E-5 Written notice of acceptance; access to premises

(a) The claimant, within thirty days after receipt of a contractor's settlement offer, may accept any offer by serving the contractor with a written notice of acceptance; provided that an association shall have forty-five days to respond. If no written notice of acceptance is served, the settlement offer shall be deemed rejected.

(b) If a claimant accepts a contractor's offer to repair, the claimant shall provide unfettered access to perform and complete the construction within the timetable stated in the settlement offer.

[L 2004, c 119, pt of §2; am L 2005, c 22, §43]

§672E-6 Offer of settlement

. (a) Any time after the service of the notice of claim, any party may serve an offer of settlement.

(b) If the offer is accepted, the parties shall be deemed to have resolved the claim in whole or in part pursuant to the offer.

(c) An offer not accepted within the time period required under section 672E-5, or ten days after service for any subsequent offers, shall be deemed withdrawn and evidence thereof shall not be admissible except to determine entitlement to recovery of costs. If the judgment or award obtained in a subsequent proceeding is not more favorable than the offer, the offeree shall pay the costs incurred by the offeror after the making of the offer. The fact that an offer is made and not accepted does not preclude a subsequent offer.

[L 2004, c 119, pt of §2; am L 2025, c 308, §4]

§672E-7 Mediation

(a)If the parties are unable to resolve the claim pursuant to section 672E-5 or 672E-6, all parties shall attempt to resolve the dispute through mediation, even if mediation is not otherwise ordered or mandated by contract or by law; provided that the parties shall not be required to attempt to resolve the dispute through mediation more than once.

(b) Mediation shall be completed within twelve months of the filing of the notice of the claim, unless the parties agree or the court orders otherwise.

[L 2004, c 119, pt of §2; am L 2025, c 308, §5]

§672E-8 Statute of limitations on actions exception

If an applicable statute of limitation or repose would preclude an action after the notice of claim has been served but before the dispute is resolved under this chapter, the claimant may file an action against the contractor but the action shall be immediately stayed pending the contractor's opportunity to repair under section 672E-4, or submission of the dispute to mediation under section 672E-7; provided that no action shall be filed pursuant to this section more than six months before the end of the applicable limitation or repose period. This section shall not be construed to revive a statutory period of limitations on actions that have expired prior to the date on which a claimant's written notice of claim is served. After the sending of the initial notice of claim, a claimant and a contractor, by written mutual agreement, may alter the procedure for the notice of claim under this section.

[L 2004, c 119, pt of §2; am L 2025, c 308, §6]

§672E-9 Additional construction defects

A construction defect discovered after the notice of claim is served may not be alleged in an action until the claimant has given the contractor:

(1) A written notice of claim regarding the alleged defect under section 672E-3; and

(2) An opportunity to repair the construction defect or reject the notice of claim under section 672E-4.

[L 2004, c 119, pt of §2]

§672E-10 Release

If the parties resolve the claim in whole or in part, the claimant shall be barred from bringing an action for the resolved claims.

[L 2004, c 119, pt of §2]

§672E-11 Contract of sale; provisions

(a) Upon entering into a contract for sale of a new structure or the construction or substantial remodeling of a premises, the seller of the new structure shall provide to the purchaser of the new structure, and the contractor of the construction or substantial remodeling of the premises shall provide to the owner of the premises, notice of the contractor’s right to resolve alleged construction defects before a claimant may commence litigation against the contractor. The notice shall be conspicuous and included as part of the contract.

(b) The notice required by subsection (a) shall explicitly reference this chapter, and shall be in substantially the following form:

"CHAPTER 672E OF THE HAWAII REVISED STATUTES CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY FILE A LAWSUIT OR OTHER ACTION FOR DEFECTIVE CONSTRUCTION AGAINST THE CONTRACTOR WHO DESIGNED, REPAIRED, OR CONSTRUCTED YOUR HOME OR FACILITY. NINETY DAYS BEFORE YOU FILE YOUR LAWSUIT OR OTHER ACTION, YOU MUST SERVE ON THE CONTRACTOR A WRITTEN NOTICE OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE. UNDER THE LAW, A CONTRACTOR HAS THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR AND/OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY A CONTRACTOR. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER THE LAW, AND FAILURE TO FOLLOW THEM MAY NEGATIVELY AFFECT YOUR ABILITY TO FILE A LAWSUIT OR OTHER ACTION."

[L 2004, c 119, pt of §2]

§672E-12 Other actions

This chapter shall not interfere with a contractor's right to seek contribution, indemnity, or recovery against a subcontractor, supplier, or design professional for any claim made against a contractor by a claimant.

[L 2004, c 119, pt of §2]

§672E-13 Dismissal without prejudice

The court or arbitrator shall dismiss, without prejudice, any action failing to meet the requirements of this chapter, unless:

(1) The failure to meet the requirements is the direct result of the wrongful conduct of another party;

(2) Circumstances beyond the control of the party prevented compliance; or

(3) An applicable statute of limitations on actions would prevent the refiling of an action, in which case the action shall be immediately stayed to provide the claimant with an opportunity to comply with this chapter, but for no longer than six months;

provided that the exceptions provided by this section to any specific requirement of this chapter shall not excuse a party from substantially complying with the remainder of the chapter.

[L 2004, c 119, pt of §2]

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