HB1900 revises Hawaii’s construction-defect and construction-related remedies laws in three main ways. First, it amends the statute of repose for claims arising from construction of improvements to real property and adds a new rule that building-code-based claims may proceed only when the alleged violation is a “material violation,” defined as one that could reasonably cause physical harm or significant system damage. Second, it tightens the pre-suit notice, inspection, and repair process under the Contractor Repair Act by requiring claimants to provide detailed notice, comply individually before joining class actions, and allow contractors an opportunity to inspect, test, and propose repairs or settlement.
Impact
The bill would change sections 657-8, 672E-3, 672E-4, and 672E-6 of the Hawaii Revised Statutes. Its practical effect is to make it harder to bring or maintain certain construction-defect and building-code claims, while preserving claims for negligent repair/maintenance, survey errors, and products liability. It also removes the prior nine-month deadline for inspections and testing, clarifies settlement-offer procedures, and limits a claimant’s repair recovery if the claimant rejects a contractor’s reasonable inspection proposal or reasonable offer to remedy the defect. Contractors, subcontractors, homeowners, condominium associations, and construction defect litigants would be the primary affected parties.
Sentiment
The available voting history suggests the bill advanced with general support but not unanimity. It passed second reading as amended in the House with Representative Alcos and Representative Amato voting aye with reservations, Representative Pierick voting no, and Representative Holt excused. That pattern indicates the measure was acceptable to a majority, but some members had concerns significant enough to register reservations or opposition.
Contention
The main points of contention appear to be the bill’s restrictions on construction-defect litigation and the limits it places on recovery. Critics may object to the new “material violation” threshold, the requirement that each claimant comply with the Contractor Repair Act before joining a class action, and the cap on repair recovery when a claimant rejects a contractor’s reasonable proposal. Supporters are likely to view these changes as reducing frivolous claims, encouraging early inspection and repair, and giving contractors a fair chance to cure defects before litigation. The removal of the nine-month inspection/testing deadline also suggests an effort to make the process more workable, though it may raise concerns about delay.
Providing for the capital budget for fiscal year 2025-2026; itemizing public improvement projects, furniture and equipment projects, transportation assistance, redevelopment assistance projects, flood control projects and Pennsylvania Fish and Boat Commission projects leased or assisted by the Department of General Services and other State agencies, together with their estimated financial costs; authorizing the incurring of debt without the approval of the electors for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies; authorizing the use of current revenue for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies stating the estimated useful life of the projects; and making appropriations.
Providing for the capital budget for fiscal year 2025-2026; itemizing public improvement projects, furniture and equipment projects, transportation assistance, redevelopment assistance projects, flood control projects and Pennsylvania Fish and Boat Commission projects leased or assisted by the Department of General Services and other State agencies, together with their estimated financial costs; authorizing the incurring of debt without the approval of the electors for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies; authorizing the use of current revenue for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services and other State agencies stating the estimated useful life of the projects; and making appropriations.