Bill Text: HI SB1587 | 2025 | Regular Session | Amended
Bill Title: Relating To Retainage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-02-14 - Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM. [SB1587 Detail]
Download: Hawaii-2025-SB1587-Amended.html
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THE SENATE |
S.B. NO. |
1587 |
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THIRTY-THIRD LEGISLATURE, 2025 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO RETAINAGE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 103-32.1, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) Any public contract may include a provision
for the retainage of a portion of the total project budget from the amount
due under the contract to the contractor to ensure the proper performance of
the contract; provided that:
(1) The sum withheld by the procurement officer
from the contractor shall not exceed [five]
per cent of the total [amount due the contractor and that, after fifty per
cent of the contract is completed and progress is satisfactory, no additional
sum shall be withheld; provided further that if progress is not satisfactory, the
procurement officer may continue to withhold, as retainage, sums not exceeding five
per cent of the amount due the
contractor; and] total project budget;
(2) The retainage shall not include sums deducted
as liquidated damages from moneys due or that may become due the contractor
under the contract[.]; and
(3) The sum withheld by the procurement officer
from the contractor shall be paid to the contractor no later than
days after one hundred per cent of the contract, including any contract amendments
or supplementary contracts, is completed and satisfactory; provided that the
contract shall not be deemed completed until all certificates and inspections
are also completed and satisfactory and all contractor warranty periods have
been completed.
For
the purposes of this subsection, "total project budget" means the
contract amount which may be increased or decreased through contract amendments
and supplementary contracts."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect January 1, 2491; and shall apply to all public contracts executed on or after January 1, 2026.
Report Title:
Retainage Fees; Contractors; Public Contracts
Description:
Allows procurement officers to withhold a retainage fee from the total budget from contractors to ensure satisfactory project completion. Requires the retainage fee to be paid to contractors within a certain number of days of project completion. Applies to public contracts executed on or after 1/1/2026. Effective 1/1/2491. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
