HI SB2463

Raises the threshold for "duty to defend" clause restrictions from $1,000,000 to $10,000,000 for public works contracts with licensed design professionals under Hawaii Revised Statutes chapter 464.

Prohibits governmental bodies from requiring design professionals to defend against liability claims arising from the contractor's performance on contracts under $10,000,000 unless the contractor is found at fault.

Allows design professionals to still be required to indemnify and hold harmless the governmental body for claims resulting from the contractor's negligent, reckless, or wrongful acts, errors, or omissions after negligence is determined.

Applies to contracts entered into on or after July 1, 2014, addressing competitive disadvantages for local small design firms and teams against larger multi-state or multinational firms.

Takes effect on December 21, 2112.