Mechanic’s Liens on Private Projects in Hawaii

Abstract

Mechanic’s and materialman’s liens are an important alternative remedy for tradesmen who have not been paid for improvements made under a contract. These statutes allow the unpaid tradesman to place a lien on the improved property and then foreclose and force the sale of the property to satisfy the lien. While the procedures are technical and vary from state to state, general concepts are commonly shared. This article examines Hawaii’s mechanic’s lien statutes and case law and describes the basic procedures and requirements of the remedy for nonpayment on contracted work. Because a lien jeopardizes an owner’s interest in his real property, courts require strict compliance with procedural safeguards including notice and a right to a hearing to contest the lien before the property can be foreclosed. Owners can avoid the danger of liens by requiring payment bonds, by ensuring that subcontractors and suppliers are promptly paid, and by overseeing the project with care. The issues surrounding timely filing are emphasized.