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Description

This company offers builing materials and wholesale lumber.


BBB Accreditation

A BBB Accredited Business since

BBB has determined that Honsador Holding LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.


Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for Honsador Holding LLC include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 2 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

2 complaints closed with BBB in last 3 years | 1 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 2
Total Closed Complaints 2

Customer Reviews Summary Read customer reviews

0 Customer Reviews on Honsador Holding LLC
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0

Additional Information

BBB file opened: February 10, 1978 Business started: 01/01/1935 Business started locally: 01/01/1935 Business incorporated 10/05/2004 in DE
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

DCCA Business Registration Division
335 Merchant St STE 201, Honolulu HI 96813
www.businessregistrations.com
Phone Number: (808) 586-2727
breg@dcca.hawaii.gov
The number is 32888 C6.

State of Hawaii Department of Taxation
PO Box 1425, Honolulu HI 96806
http://pahoehoe.ehawaii.gov/tls/app
Phone Number: (808) 587-4242
The number is W50107959-01.

Type of Entity

Limited Liability Company (LLC)

Business Management
Mr. Wayne L. Lincoln, Vice President, Sales & Marketing Mr. Scott Choi, CFO Mr. Errol T. Nii, Sr. Vice President Mr. Peter Schiller, CEO
Contact Information
Principal: Mr. Wayne L. Lincoln, Vice President, Sales & Marketing
Customer Contact: Mr. Peter Schiller, CEO
Business Category

Building Materials Lumber - Wholesale


Additional Locations

  • 100 Kukila St

    Hilo, HI 96720 (808) 961-6000

  • 250 Lalo St

    Kahului, HI 96732 (808) 877-5045

  • 3186 Ninini Point Street

    Lihue, HI 96766 (808) 246-2412

  • 73-5580 Kauhola St

    Kailua Kona, HI 96740 (808) 329-0738

  • 91-151 Malakole St

    Kapolei, HI 96707 (808) 682-2011

  • 91-291 Hanua St

    Kapolei, HI 96707

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

1/30/2015 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: This complaint is against Honsador Lumber for deceptive and unfair business practices, and maintaining a conflict of interest between their role as a construction bonding agent and their role as a construction materials supplier.I went to Honsador Lumber to get a construction bond to protect me incase my general building contractor defaulted or failed to perform under contract. Honsador told me they could do that and had me fill out the paperwork. I told them I needed someone to go over the bond agreement with me because there were parts I did not understand. I was told by **** *******, who was handling the bond that she did not understand it herself. She said it was all standard paperwork. Later this became an issue when my general contractor, ***** Construction, failed to perform and I asked Honsador to pick up the bond. Honsadors bonding agent on Oahu refused. He told me that I had foolishly signed paperwork saying they did not have to do that. They stonewalled me for months, and I only got their attention when I contacted Senator *** ****** office. I have since learned that it is illegal for Honsador not to go over Indemnity Clauses at the time of bonding, which they did not do, even when specifically asked.When I finally got my general contractor back on the job, he went over the completion deadline. Honsador let him do that despite my telling their general manager, ***** *********, that he was not working on my house and would not finish on time. After being assigned several different Honsador bonding agents who kept leaving the company, I was told by their general manager that they had no bonding agent and were trying to hire a new one. The general manager told me that he had released all but $4,892.11 dollars to my general contractor, who was a friend of his and a primary customer of Honsador Lumber. I told him that the last bonding agent ****** ******* had told me that all of the final payment of $20,860 was to be held until my authorization and the final walkthrough. His response was that he was able to release the money under Honsadors policies and that he did not have to withhold the final payment despite work not being finished and badly installed items. I asked Honsador, **** ****, general manager and **** *******, bonding agent, not to release any more money to my contractor as my contract allowed me to fix damages caused by ***** Constructions crew if my contractor failed to do that and to finish items wrongly or improperly installed. I sent them a list of all the problems and told them not to release the remaining money. Then on December 12, 2014, I was inadvertently told by one of Honsador Maui office workers who was helping me replace damaged cabinets done by ***** Construction that Honsador had closed the bond. This was without a final walkthrough or authorization by me. When she realized that I had not been informed that my bond was closed she refused to complete the order as I had expected to charge the bond for the installation labor and she said was only authorized to give me the cabinets.In addition one of Honsadors workers referred to me in front of his coworkers as ***** ****** instead of my real name, as if I were a private joke between them, when I was in their office to get faulty materials replaced. Honsador Lumber is a multimillion-dollar company whose failure to provide good business practices has caused me financial loss and personal hardship. Their actions have been predatory, unfair, and insulting. Their release of most of my money from the final payment before house completion and without a final walkthrough, and then later releasing all of the bond when they knew ***** would not perform shows a total disregard for the bond I asked them to provide to me. Instead they did everything possible to protect the general contractor who buys his building materials from them.

Desired Settlement: Honsador Lumber should be prevented from being able to make Indemnity Clauses part of their bond documents. Their Indemnity Clause goes directly against the primary purpose of a construction bond. I was told by Honsador that banks know never to sign it when signing bonding papers, but individuals like myself make that mistake. They illegally did not go over this document and should be held accountable so as not to do that to others. I want to be reimbursed the bond money of $4,892.11 as well.

Business Response:

Please be advised that this complaint has incorrect statements according to our records and we disagree with the accusations.  As the statements are potentially damaging to Honsador we will be preparing a response with our advisor which will take some time.  Please contact our CFO, ***** ****, who is copied on this email and in charge of responding to this complaint for any questions.
Regards,
**** ********

Business Response:

Dear Ms. *******:

 

We received your letter that was filed with the Hawaii Better Business Bureau.  We are very sorry that you feel that your concerns have not been adequately addressed by Honsador Lumber LLC.  While we disagree with the comments made in your letter, we always endeavor to satisfy our customers.

 

It is not unusual for disputes to arise between contractors and owners during the course of construction.  With respect to the construction of your home, Honsador spent a great deal of time—at no cost to you—working directly with both you and the contractor that you selected for the construction of your home, to mediate and resolve disputes that threatened the continued construction of your home.  Early in the construction of your home, we were able to work with you and your contractor to develop a change order to resolve these disputes and get your project back up and running. 

 

Like any contract, the Payment and Performance Bond sets forth mutual obligations and responsibilities of the parties to that contract.  In this case, the Bond represented a three-way agreement between yourself, your contractor, and Honsador, as the surety.  That Bond agreement was entered into freely by all parties, and all parties, including you, had an obligation to make sure they understood the terms of that contract.  Moreover, it is your contractor that had a statutory duty to explain lien and bonding rights to you. We acted consistent with our obligations under the Bond in responding to your concerns and worked with you and your contractor to complete the construction of your home.  Given that your home was completed by the contractor, lien free, then neither of Honsador’s obligations (to perform or pay unpaid subcontractors or suppliers) were or would have been triggered.  As you have not cited to any specific Bond provisions, we are not aware of what, if any, Bond obligations you are alleging that Honsador breached.

 

Contrary to the assertion in your letter, there is no conflict of interest by Honsador in selling construction materials and offering surety bonds.  Supply house sureties have long been a staple in Hawaii’s construction industry.  Banks, contractors, governmental agencies, and the courts, have all recognized the role that supply house sureties, such as Honsador, play in the construction process.  Furthermore, the reason why there is no conflict of interest in selling construction materials while also issuing bonds, is that Honsador, like other supply house sureties, do not condition the issuance of the bond on the sale of construction materials.  There is no contract term in either your construction contract or in the bond that obligates you or your contractor to buy materials from Honsador in order to get a bond. 

 

As to your comments about the indemnity agreement, it is within our business judgment to determine whether an indemnity agreement is needed from either the contractor or the owner in connection with the issuance of a bond.  It is not illegal to do so.  If in exercising our business judgment, we determine that an indemnity agreement is necessary from the owner, it is our standard operating procedure to inform the owner that they should seek independent advice regarding the contractual obligations under the agreement before signing it.  It was not Honsador’s duty to make sure you understood the indemnity agreement before you signed it.  You agreed to sign it because you wanted the benefit of the Bond.  We also need to point out that you were not asked to perform any obligations under the indemnity agreement that you signed, and Honsador did not impose any obligations on you.  You have complained about having to sign the indemnity, yet you were not damaged in any way by it.  No one has made you do anything or pay any money under that indemnity agreement.

 

We regret if there was any confusion on the timing of the disbursement of final payment.  However, all funds that we disbursed were for the construction of your home.  No monies were diverted, misappropriated, or overpaid.  To the best of our knowledge, no liens have been filed against your property, meaning that all funds were utilized to pay for all labor, materials, and equipment furnished, just as they should be.

 

We understand that your home has been substantially completed and that you have moved into the house.  To the extent that you and your contractor are still working through responsibility for addressing limited warranty matters, we have continued to work with both of you to amicably resolve these matters.  Over the course of the last several months, our team has had multiple conversations with both you and your contractor to discuss whether certain items that you have identified are covered under the construction contract and/or are the responsibility of your contractor to complete.  Given these discussions and our continued efforts to work with you and your contractor to mediate and resolve your differences of opinion, we were very surprised to read your allegation that Honsador has not been working with you.  As we have informed you, we are committed to continue to address these matters with you and your contractor.  However, Honsador’s obligations to you and your contractor are not open ended—they are dictated by the terms of the Bond, which you agreed to.  Our obligations have been honored in good faith, and we stand ready to remedy any legitimate discrepancy that you wish to bring to our attention.

 

As with the prior resolution of the dispute between you and your contractor, thank you for giving us the opportunity to address the issues raised in your complaint to the Hawaii Better Business Bureau, and we look forward to promptly addressing any other concerns you have.

 

Sincerely,

***** ***

Senior Vice President

 

 

 

 

 

 

 

Consumer Response:  
Complaint: ********

I am rejecting this response because:

 

In response to my original complaint of unfair and predatory business practices by Honsador Lumber to the BBB I received a phone call from Honsador Lumber’s attorney ***** **** on January 18, 2015.  She told me that Honsador had not closed my Construction Bond.  I told her that I had an email from Honsador that the Bond was closed and all funds in my Bond account dispersed to ***** Construction.  Ms. **** then said that Honsador had a right to close the bond 45 days after the completion of work.  She wanted to settle things outside the BBB saying that Honsador could handle the problem with ***** Construction.  I told her I wanted the BBB to handle the matter; that Honsador had a conflict of interests.  I also felt it was inappropriate since I had a complaint against Honsador as well.

 

In Honsador’s rebuttal to my complaint on them, they maintain that Honsador was of help to me.  I will go over the facts of my complaint again to show that what they did was harmful to me, not helpful.

 

Before signing the construction agreement with ***** Construction I asked Honsador Lumber of Maui to bond.  I told Honsador I wanted protection incase ***** Construction could not perform.  I asked them to go over their bond papers with me.  **** ******* at Honsador Maui who was handling it told me that the papers were Honsador’s standard documents and that she did not understand them herself so could not go over them with me.  Honsador does not refute the fact that they did not go over their Indemnity Clause with me.

 

Later when ***** Construction walked off the project because of a mistake he made on the concrete foundation, which he could not afford to fix, I was told by Honsador’s bonding agent, Mr. *******, that I was not bonded and that they would do nothing because I had signed their Indemnity Clause.  He said that banks know not to sign Indemnity Clauses, but individuals do not.  In my opinion indemnity clauses should be illegal as they go against the direct intent of a construction bond and are unfair to consumers.  The Clauses can be used as leverage against the consumer.  Mr. *** in his rebuttal defends this practice; a practice that can only be defined as predatory. 

 

Since Honsador was refusing to bond, I consulted a construction attorney who reviewed all the documents, including construction blueprints, and said that Honsador had to bond.  He told me that Indemnity Clauses are considered so heinous by the courts that they will award triple damages if the Clause was not gone over with me. 

 

Both Honsador and their attorneys chose to completely ignore the construction blueprints I sent them that showed ***** had made a mistake on the foundation.

 

The Performance Order, which is referred to as a “Change Order” by Mr. ***, was that I would pay half and that ***** would pay half to fix the concrete foundation, even though none of it was my fault.  During negotiations I said that Honsador should pick up the other half if ***** could not afford it since they were bonding and they said no.  I agreed to pay half because I could not afford to have the project stalled any longer.  At the meeting, *** ***** of ***** Construction told Honsador that he did not have enough money to complete the project. 

 

Lengo then went on to cut corners on the construction of the house, did not provide adequate oversight, and worked other jobs, going many months over his second deadline, which was already moved 5 months back to accommodate the long delay in resolving the foundation problem due to his walking off the project and Honsador’s stonewalling.  Honsador did nothing to keep ***** on schedule.  When bonding Honsador is vouching that he will complete on time.

 

Lengo Construction recently advertised in the Maui News as building Honsador Lumber’s Model Kit Homes for them.  Mr. ***** is one of Honsador’s best customers in purchasing building supplies. Most of the building materials used in the construction of my house came from Honsador.  There is a conflict of interests when it comes to Honsador protecting the homebuilder when ***** fails to perform as general contractor.  They will protect ***** Construction first.

 

Some States do not allow building material companies such as Honsador Lumber to give construction bonds because of conflicts of interests.   In my opinion this is a good direction for Hawaii to follow.  At the very least, potential conflicts of interests such as those with Honsador Lumber and Lengo Construction need to be disclosed to consumers before bonding.  

 

Honsador went on to release almost all of the final payment to ***** in advance of completion, leaving so little in the Bond that there was no incentive for Lengo to complete or fix damaged and improperly installed items.  With under $5,000 left in the Bond’s final payment, I again contacted a construction attorney to find out if I could move into the unfinished house, as the house had been under construction over two years, on a contract that was originally 8 months.  The delay was causing hardship and added expense to my family, which Honsador was aware of.  The first check I wrote to Honsador to begin construction is dated 06/27/2012 on their Bond Detail Report.

 

The attorney told me to write to Honsador telling them my intentions, and not to release the remaining money before the items were fixed and home completed, and to send Honsador a list of the problems.  This I did and then moved in later on 10/06/14, only to have Honsador go on to release all of the remaining money the day I moved in without telling me, despite the work that had not been completed, work not done according to plans, substandard work done that needed repair, and no final walkthrough. The attorney said their action was illegal.  

 


Sincerely,

***** *******

7/12/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Purchased windows from Honsador. Window damaged in burglary. Honsador has not assisted in obtaining replacement parts. Purchased Milgard windows from Honsador about 6 years ago. On April 2, 2013 our home was burglarized and one window was damaged. Our contractor contacted Honsador for the repair parts. There response was extremely slow and parts were finally delivered on or around May 31st. Some of the parts sent were not the correct parts and the part were incomplete. Our contractor contacted Honsador to return and obtain the correct parts and they have not received any return calls. I contacted Honsador in June and ask for assistance in obtaining parts for our broken window. I was transferred to the window Dept. and left a voice mail for a **** Hanohano. No return call.

Desired Settlement: We would like them to obtain the correct parts to repair our window.

Business Response: Business' Initial Response /* (1000, 5, 2013/07/09) */ Our inattention to returning customer calls is unacceptable and we humbly apologize for this lack of response. This is not our organization, its management or leadership's customer service standard. Honsador Lumber does have full access to Milgard parts and glass and lead times and parts are often on hand and available for immediate shipment. In a situation where a special order or custom parts are required we are informed by Milgard at time of inquiry and communicate the same to the customer. It is essential and Milgard will request we provide/obtain manufacture markings and/or codes within the glass or frame of the window to ensure parts and/or glass is correct and to size and specification of the series of window needing repairs. Our suggestion to resolve is to contact and conference with the contractor and customer or they can contact us directly to assure that we are communicating, sharing and gathering the information needed to order the parts required for the contractor to successfully complete the repair to this window. If needed we can also arrange for a Milgard Representative visit the jobsite. Consumer's Final Response /* (2000, 7, 2013/07/11) */ (The consumer indicated he/she ACCEPTED the response from the business.) We accept the business' response. All we ask is that they assist in expeditiously returning the wrong parts received and obtaining the correct parts so the window can be repaired.