SB1587 modifies retainage rules for public contracts in Hawaii, limiting the percentage withheld and the conditions under which it can be applied.

SB1587 amends Hawaii's retainage rules for public contracts, specifying that after 50% of the contract is completed and progress is satisfactory, no additional sums can be withheld. If progress is unsatisfactory, the procurement officer may withhold up to 1% of the total project budget. The withheld sum must be paid within a specified period after the contract is completed and satisfactory, including all certificates and inspections. The bill also clarifies that retainage does not include sums deducted as liquidated damages.

SB1587 modifies retainage rules for public contracts in Hawaii, limiting the percentage withheld and the conditions under which it can be applied.

SB1587 amends Hawaii's retainage rules for public contracts, specifying that after 50% of the contract is completed and progress is satisfactory, no additional sums can be withheld. If progress is unsatisfactory, the procurement officer may withhold up to 1% of the total project budget. The withheld sum must be paid within a specified period after the contract is completed and satisfactory, including all certificates and inspections. The bill also clarifies that retainage does not include sums deducted as liquidated damages.