HI SB1587

Amends Hawaii Revised Statutes Section 103-32.1(c) to allow procurement officers to withhold retainage fees from the total project budget (rather than only from amounts due to contractors) to ensure proper contract performance.

Removes the previous requirement that retainage withholding stop after 50% contract completion if progress is satisfactory, simplifying the retainage framework.

Requires retainage fees to be paid to contractors within a specified number of days after 100% contract completion, including all amendments, supplementary contracts, certificates, inspections, and warranty periods.

Defines "total project budget" as the contract amount which may be increased or decreased through contract amendments and supplementary contracts.

Applies to all public contracts executed on or after January 1, 2026.