Bill > HB274

This bill establishes new regulations for payment between contractors and subcontractors in Hawaii, requiring contractors to pay subcontractors within 30 days of receiving an invoice for services, with penalties for late payments. If a contractor fails to pay within 45 days, they will incur compounding interest at two percent per week. The bill mandates that contractors cannot withhold payment to subcontractors even if the contractor's own payment from the project owner is delayed, and requires that any retention amounts (funds withheld to ensure satisfactory performance) be paid promptly upon project completion. Contractors must carry subcontractor default insurance, and subcontractors must guarantee their work. If a subcontractor successfully pursues a civil claim for late payment, the contractor must pay the original amount owed plus the subcontractor's attorney fees, any financial penalties incurred, and the accrued interest on loans that could not be repaid due to the delayed payment. The bill defines a subcontractor as a person or entity contracted to perform specific tasks or provide materials for a construction project, and it will take effect upon approval.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=274&year=2026