Construction contracts

Hawaii is known to life difficult for entrepreneurs who are not in the ranks no. Sometimes bordering on the ridiculous, the results are, at least from a contractor. Just ask Michael Sakatani, Honolulu, a contractor doing business as 808 Development LLC.

A few years ago, landed Mike's undertaking, on a 1.8 million U.S. dollars contract to a 9000 SF home in Honolulu to build - in the shadow of Diamond Head and just one block from the blue Pacific Ocean. This would have a good job for Mike. But the cost was a bit longer than expected, and the relationship with the landlord and bitter. The payments stopped and you can certainly imagine what happened next. A team of lawyers intervened to clarify things. The case dragged through the Hawaiian dishes for several years, eventually landing in Hawaii Supreme Court

Like many other states require Hawaii specific advice and information in construction contracts. What is required depends on the type of work. Mike job was Diamondhead homes --. For residential work:

Hawaii Revised Statutes 444-25,5 voids any contract that includes information and details omitted.

Repeal of the same information is also a fraudulent act under Hawaii Revised Statutes 480-12, so that the contractor is responsible for a $ 5000 fine (444-23).

Faulty information can, for Hawaii's Civil Procedure Code, Title 16, Chapter 77 information required, Part 12, 79 and 80 lead to suspension or revocation of license contractor. Hawaii Revised Guidelines 444-17.

Hawaii's law should contractors Repair, 672E-11 that the contracts contain a reference to the right of the contractor to repair construction defects.

After Mike became lawyers, they discovered a problem. One of the necessary notifications Hawaii Mike is missing from the contract - lift mechanics lien. Mike claimed that the lien notice had been delivered under the contract. But he could not find a copy and even the owners could.

Thus, the agreement was invalid under Hawaii law.

In most states, the contractor may, with two choices. Either collect under the theory of "unjust enrichment" or file a mechanic lien. Neither you receive the total contract value. But Mike could at least cover their sunk costs. And that's what Mike's legal team argued. In her words, everything else would be "absurd and unjust."

This is not, as Hawaii Supreme Court, they saw. No matter how absurd and unjust, the failure of a business that also requires an indication of a construction contract has no right to collect, period.

When it comes to building contracts, Hawaii, takes no prisoners. If you plan to collect the contract better be perfect.

But the court's decision was not all bad news for Mike. He had not assessed the $ 5,000 fine, revoked his license and not have to pay to the owner is not a lawyer. And if he finds that the material is still lacking Mechanics' notice of the court offered to reconsider its decision. It was in 2006. I can not find, based on recent appeal decision in this case. So I guess Mike is still looking for missing lien reserved.