Bill > HB808

This bill modifies the Hawaii Procurement Code to require public contractors working on projects over $25,000 to obtain insurance covering at least half of the project's construction costs, specifically to provide funds for addressing construction defects discovered within ten years after contract completion. The bill expands existing requirements for performance and payment bonds by adding a new insurance mandate, and it authorizes the State to take legal action against contractors to recover the costs of fixing construction defects within that ten-year period. Contractors must now secure performance bonds, payment bonds, and proof of insurance through companies authorized to do business in Hawaii, though the insurance will not cover repairs resulting from normal wear and tear. The legislation also establishes procedural guidelines for how and when the State can sue contractors for construction defects, including specifying that such lawsuits must be filed in the circuit court where the project is located and must be initiated within ten years of contract completion. This bill aims to provide additional financial protection and accountability for public construction projects by ensuring funds are available to address potential defects in the years following project completion.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=808&year=2026