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.

HCR37

HOUSE OF REPRESENTATIVES

H.C.R. NO.

37

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

HOUSE CONCURRENT

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 House of Representatives of the Thirty-third Legislature of the
State of Hawaii, Regular Session of 2026, the Senate concurring, 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 Concurrent 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 Concurrent 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.

OFFERED BY:

_____________________________

Report Title:
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Procurement;
State; County; Contractor Payment Public Website; DAGS; Public Works Division