SB 1587 Hawaii Senate · 2026 Regular Session

RELATING TO RETAINAGE.

Summary

Allows procurement officers to withhold a retainage fee from the total budget from contractors to ensure satisfactory project completion. Requires the retainage fee to be paid to contractors within a certain number of days of project completion. Applies to public contracts executed on or after 1/1/2026. Effective 1/1/2491. (SD1)

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 23, 2025 Last action Dec 8, 2025

Maddy AI version diff · 1 comparison

What changed between versions

SB1587 → SB1587_SD1 · 5 edits

MODERATE

This bill update clarifies the rules for withholding retainage fees from contractors, ensuring that the withheld amount is paid only after all project work, contract amendments, and warranty periods are fully satisfied. It also expands the definition of the 'total project budget' to include any changes made through amendments or supplementary contracts. Additionally, the bill sets a specific effective date of January 1, 2491, and applies to public contracts executed on or after January 1, 2026.

Scope change

The bill's applicability is now explicitly limited to public contracts executed on or after January 1, 2026, with an effective date of January 1, 2491.

REQUIREMENT

The condition for releasing retainage was updated to require the completion of all contractor warranty periods in addition to project completion and inspections.

The release of retainage is now tied to the completion of one hundred percent of the contract, including any amendments or supplementary contracts.

DEFINITION

A new definition was added for 'total project budget,' clarifying that it includes amounts increased or decreased through contract amendments and supplementary contracts.

TIMELINE

The bill specifies an effective date of January 1, 2491, and states it applies to contracts executed on or after January 1, 2026.

ENFORCEMENT

A new section was added stating that the Act does not affect rights, penalties, or proceedings that occurred before its effective date.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 14, 2025

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 14, 2025

Committee

Reported from GVO (Stand. Com. Rep. No. 526) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 6, 2025

Upper · Passed

The committee(s) on GVO recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in GVO were as follows: 5 Aye(s): Senator(s) McKelvey, Gabbard, Moriwaki, San Buenaventura, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Jan 31, 2025

Upper · Passed

The committee(s) on GVO has scheduled a public hearing on 02-04-25 3:05PM; Conference Room 225 & Videoconference.

upper

Jan 27, 2025

Committee

Referred to GVO, WAM.

upper

Jan 23, 2025

Introduced

Introduced.

upper

1 primary · 0 co-sponsors