A subcontractor completes work on February 10th, the general contractor achieves substantial completion on March 5th, and final completion occurs on March 20th. Under HRS 507, when does the lien filing deadline begin for the subcontractor?
Correct Answer
B) March 20th
Under HRS 507, the lien filing deadline begins from final completion of the entire project, not individual completion dates.
Why This Is the Correct Answer
Under Hawaii Revised Statutes Chapter 507, the lien filing clock begins upon final completion of the entire project, not upon any individual subcontractor's completion date or upon substantial completion. Because final completion occurs on March 20th in this scenario, that is the trigger date from which the subcontractor's lien deadline is calculated.
Why the Other Options Are Wrong
Option A: When the owner accepts the work
Owner acceptance of the work is a concept found in some contract law contexts but is not the statutory trigger under HRS 507. Hawaii's lien law ties the deadline to final completion of the project as an objective event, not the subjective act of owner acceptance.
Option C: March 5th
March 5th is the date of substantial completion by the general contractor, not final completion. Substantial completion — typically defined as the point when the project can be used for its intended purpose — is not the trigger for the lien filing deadline under HRS 507. Final completion is the controlling event.
Option D: February 10th
February 10th is when the subcontractor personally finished its work, which is the most intuitive (but legally incorrect) choice. Many candidates assume the subcontractor's lien clock starts when the subcontractor's own work ends. Under HRS 507, the clock runs from the final completion of the entire project, giving subcontractors who finish early the benefit of a later trigger date.
Memory Technique
Think of lien rights as a relay race: the clock doesn't stop for individual runners — it only stops when the entire team crosses the finish line (final completion). Even if the electrician finishes first, everyone's lien clock runs until the last trade is done.
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