Illicit Construction Practices in Honolulu: A Costly Risk for Homeowners

May 29, 2025 at 4:03 AM
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In recent developments, the City and County of Honolulu has issued a stark warning to homeowners regarding illegal construction activities. The city's Department of Planning and Permitting uncovered a significant case involving fraudulent use of a professional engineer’s stamp on building plans, leading to a $10,000 fine against the business owner involved. This situation highlights an increasing trend of unauthorized construction practices across O'ahu, urging homeowners to be vigilant about their contractors’ credentials. While opting for unlicensed services might initially seem cost-effective, it often results in higher expenses down the line. Experts emphasize that engaging with non-permitted companies not only jeopardizes project quality but also complicates future property transactions.

The rise in illegal construction activities is alarming, particularly when instances such as forgery come into play. In this specific instance, the individual responsible was penalized heavily, illustrating the severity of these actions. According to Roseann Freitas, CEO of the Building Industry Association of Hawai'i, problems can emerge at any stage of a project, even during its execution. Homeowners might encounter issues ranging from incomplete work to abandoned sites after payments are made. Furthermore, projects completed without proper permits could pose challenges when selling properties later on.

Freitas explained that while some homeowners believe they secure better deals by hiring unlicensed contractors, numerous complications arise once the job begins or concludes. These may include substandard workmanship, unfinished tasks, or disappearing contractors post-payment. For those facing difficulties, there exists limited assistance through regulatory bodies like the Regulated Industries Complaints Office (RICO). However, RICO primarily addresses concerns related to licensed professionals. Therefore, spotting unlicensed entities involves recognizing red flags such as rushed repair offers or claims that licenses aren't necessary for certain jobs exceeding $1,500.

Transparency remains crucial; legitimate contractors openly discuss requirements rather than dismissing them. The Department of Planning and Permitting discovered this violation while reviewing blueprints, holding accountable both the contractor and the assisting business owner. Consequently, the latter must cover the imposed penalty. Although legal avenues exist for pursuing compensation, homeowners typically face restricted options due to the nature of these illicit operations.

As the city strives to enhance its permit processes using advanced technologies, homeowners are encouraged to prioritize safety and compliance over temporary savings. Engaging licensed, reputable contractors ensures peace of mind, protects investments, and maintains property values. With vigilance and informed decision-making, residents can avoid falling prey to deceptive practices prevalent in the construction sector.