CONFERENCE COMMITTEE REP. NO. 77-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2358

S.D. 2

H.D. 1

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 2358, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONSTRUCTION CLAIMS,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is establish procedures for the resolution of disputes related to construction defects.

This measure abolishes the Design Professional Conciliation Panel and establishes a process of resolving disputes over construction defects that requires a contractor to be given notice of a construction defect claim and an opportunity to repair the defect or make some other settlement. Unresolved disputes must proceed to mediation before the filing of a lawsuit, and construction contracts must contain disclosures regarding the notice and opportunity to repair law. Your Committee on Conference finds that this measure will facilitate the nonjudicial resolution of construction defect claims, enable property owners to more quickly regain the full use of affected structures, and ultimately reduce the cost of construction for consumers in Hawaii.

Your Committee on Conference has amended this measure:

(1) By adding a definition for "claim" and expanding the definition of "contractor" to include entities that engage in manufacturing and the supplying of products;

(2) To exclude construction claims related to commercial, industrial, and hotel facilities;

(3) To clarify that the serving of a notice of claim does not constitute the making of a claim of liability under an insurance policy and does not obligate an insurer to provide a defense thereunder;

(4) To require a claimant to give a contractor reasonable prior notice and an opportunity to observe testing after serving the contractor with a notice of claim;

(5) To require, rather than permit, a contractor to serve a written response to a notice of claim;

(6) By deleting provisions specific to the rights, duties, and prohibitions applicable to apartment owners' or homeowners' associations, except for provisions that provide associations with additional time to provide access to premises and accept a settlement offer;

(7) To take effect on July 1, 2004; and

(8) By making technical changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 2358, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 2358, S.D. 2, H.D. 1, C.D. 1.

 

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

KENNETH T. HIRAKI, Co-Chair

____________________________

RON MENOR, Co-Chair

____________________________

BLAKE K. OSHIRO, Co-Chair

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COLLEEN HANABUSA, Co-Chair