REPORT TITLE:
Public Contracts


DESCRIPTION:
Extend the limits on the amount a contractor may withhold from a
subcontractor to the amounts a subcontractor may withhold from
another subcontractor for retainage to insure proper performance
on public contracts.  Repeals prohibition from retaining any
amount after 50% of the work is satisfactorily performed. (HB1338
HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1338
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC CONTRACTS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 103-32.1, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "103-32.1  Contract provision for retainage.  Any public
 
 4 contract issued under this chapter may include a provision for
 
 5 the retainage of a portion of the amount due under the contract
 
 6 to the contractor to insure the proper performance of the
 
 7 contract; provided that the sum withheld by the contracting
 
 8 officer from the contractor shall not exceed five per cent of the
 
 9 total amount due the contractor [and that after fifty per cent of
 
10 the contract is completed and progress is satisfactory, no
 
11 additional sum shall be withheld; provided further that if
 
12 progress is not satisfactory, the contracting officer may
 
13 continue to withhold as retainage, sums not exceeding five per
 
14 cent of the amount due the contractor.]; provided that in no
 
15 event shall the retainage withheld by the contractor from its
 
16 subcontractor exceed five per cent of the subcontractor's
 
17 contract price.  The maximum five per cent retainage shall also
 
18 apply to subcontractors who subcontract work to other
 
19 subcontractors."
 

 
Page 2                                                     1338
                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1      SECTION 2.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 3.  This Act shall take effect on July 1, 1999, and
 
 4 shall apply to all public works contracts entered into after
 
 5 June 30, 1999.