HI HB2295

Raises the threshold for prevailing wage requirements on public works construction contracts from $2,000 to $5,000 for governmental contracting agencies.

Creates a new exemption from contractor licensing requirements for public works projects with labor and materials costs of $5,000 or less when a governmental contracting agency is involved.

The $2,000 prevailing wage exemption threshold has not been updated since July 1, 2002, and the increase to $5,000 aligns with inflation based on the Honolulu Construction Cost Index.

Exemptions do not apply when a building permit is required or when projects are divided into smaller contracts to evade procurement requirements.

Aims to reduce administrative burdens on agencies like the Department of Education, allowing faster completion of routine repairs such as plumbing and electrical work.