HI HB1325

Amends Hawaii Revised Statutes Section 103D-324 to require public contractors to obtain insurance covering at least 50% of a project's construction costs for defects discovered within 10 years after contract completion.

Establishes proof of insurance as a new requirement alongside existing performance and payment bonds for construction contracts exceeding $25,000.

Authorizes the State to institute legal action against contractors for the full costs of curing construction defects discovered within 10 years of contract completion.

Excludes normal wear and tear from insurance coverage requirements.

Effective July 1, 2112.