Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.
A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.
In Hawaii, home improvement contractors are regulated to ensure consumer protection and fair business practices. Contractors must be licensed by the Hawaii Department of Commerce and Consumer Affairs (DCCA) through its Professional and Vocational Licensing Division. The licensing process includes passing an exam, providing proof of insurance, and meeting other requirements. Contracts for home improvement must be in writing and include specific details such as the scope of work, materials to be used, contractor obligations, payment terms, completion time, and insurance requirements. Hawaii Revised Statutes (HRS) Chapter 444 outlines the requirements for contractor licensing and regulations. Regarding mechanic's and materialmen's liens, Hawaii's lien law is found in HRS Chapter 507, which stipulates the procedures for filing and enforcing construction liens to secure payment for labor and materials provided. Contractors and subcontractors must adhere to these statutes to ensure their lien rights are protected and to avoid legal disputes.