SR 173: urging all state and county agencies involved in construction procurement to implement prompt payment TRANSPARENCY measures and expressing appreciation to the public works division of the department of accounting and general services for its efforts.

SENATE RESOLUTION

urging all state and county agencies involved in construction procurement to implement prompt payment TRANSPARENCY measures and expressing appreciation to the public works division of the department of accounting and general services for its efforts.

     WHEREAS, prompt and timely payment of amounts due on state and county construction projects is an essential management practice that promotes efficiency and fairness; and

     WHEREAS, Act 291, Session Laws of Hawaii 2006 (Act 291), resolved many issues related to prompt payment, benefiting prime contractors and subcontractors; and

     WHEREAS, retainage - the withholding of a percentage of construction funds to ensure proper and timely completion of work - is a common practice, but complaints persist regarding overdue retainage and delayed progress payments; and

     WHEREAS, excessive delays in releasing retainage harm contractors economically and threaten their continued success; and

     WHEREAS, following Act 291, the Public Works Division of the Department of Accounting and General Services established a contractor payment website providing detailed information on job progress, payments to prime contractors, retainage amounts, and subcontractor payment status; and

     WHEREAS, this transparency promotes fair dealings and accountability between prime contractors and subcontractors; and

     WHEREAS, similar practices by other procuring agencies would improve efficiency and fairness in construction procurement statewide; now, therefore,

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that all state and county agencies involved in construction procurement are urged to implement prompt payment transparency measures; and

BE IT FURTHER RESOLVED that this body expresses its appreciation to the Public Works Division of the Department of Accounting and General Services for its efforts in promoting prompt payment transparency and serving as a model for other procuring agencies; and

     BE IT FURTHER RESOLVED that all state and county agencies involved in construction procurement are requested to implement a contractor payment public website within one year of the adoption of this Resolution and submit a report on its progress, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and

     BE IT FURTHER RESOLVED that any state or county agency unable to establish such a website is requested to provide a written explanation of the barriers to implementation so that the Legislature may address these obstacles during the Regular Session of 2027; and

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Comptroller, Director of Transportation, Superintendent of Education, President of the University of Hawaii, Mayors of each county, Executive Director of the General Contractors Association of Hawaii, and President of the Subcontractors Association of Hawaii.

Report Title: 

Procurement; State; County; Contractor Payment Public Website; DAGS; Public Works Division