Question: I recently completed construction of my house. I got Department of Planning and Permitting final inspection and approval by a DPP home inspector, electrical and plumbing inspector last month. I can see online all of my build permits are closed and approved for occupancy. I noticed in the daily newspaper there is “Notice of Completion” in the classified section by general contractors. I am the owner/builder on the permit. So I hired a subcontractor to build the house, but I am essentially the general contractor for it. Is it required for me to publish a notice of completion for my house since I am the owner/builder?
Answer: Yes, state law requires the property owner or general contractor to notify the public when construction is done, and the requirement applies to owner-builders, according to the state Department of Commerce and Consumer Affairs. Doing so greatly reduces how long unpaid contractors, subcontractors or suppliers have to file a lien against a property.
“The general building contractor is required to file the notice of completion only if the owner fails to file the NOC in accordance with HRS section 507-43(f). The requirement to file the NOC would extend to the owner-builder, as HRS section 444-2.5 allows owner-builders to perform the work of the general building contractor,” said William Nhieu, a spokesman for the DCCA, which oversees the licensing of contractors and other building trades.
You can read the applicable statutes at 808ne.ws/hrs50743 and 808ne.ws/hrs44425. An easier-to-understand guide, “Consumers, Contractors and Contracts,” found on the DCCA website at 808ne.ws/buildtips, explains why publishing a notice of completion is important.
As the guide says, “Any person not paid for labor or materials furnished for a home improvement project may obtain a lien against the homeowner’s property.” A lien is a legal claim on a property to satisfy a debt. A property with a lien cannot be sold without the consent of the lien-holder.
Even if you paid your subcontractor in full, anyone the subcontractor hired to supply materials or labor could obtain a lien against your property if the subcontractor didn’t pay them.
The guide says homeowners should obtain lien releases in exchange for payment and also ensure that a notice of completion is published to start the clock ticking on potential lien applications.
“Request partial lien releases for partial payments and a final complete lien release for final payment. In addition, check with your prime contractor to see if the contractor will publish a notice of completion in the newspaper when the work is completed. If the contractor will not do so, do it yourself,” the guide states.
Because you are the owner-builder, the duty automatically falls to you.
Anyone seeking a lien must file a court application no later than 45 days after the notice of completion is published. If a valid notice is not published, a lien-seeker has up to a year to make the claim.
Per HRS 507-43f, an NOC is published twice, seven days apart, in a newspaper of general circulation in the county where the property is located; the newspaper files an affidavit of publication with the circuit court.
Mahalo
On July 29, around 5:30 p.m. in front of the Town Center of Mililani Zippy’s, my husband fell down between two cars because his knee gave out due to his arthritis. We wanted to say a big “thank you” to the father and daughter and two males who stopped to help my husband up off the ground. Without them I could not have done so. Unfortunately, I wasn’t able to get their names. We extend our sincere gratitude. — A reader
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