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Bill

SB 1587

RELATING TO RETAINAGE.

2026 Regular Session Introduced by Henry Aquino

SB 1587 modifies Hawaii construction retainage rules to adjust payment withholding percentages and protections for contractors and subcontractors.

Carried over to 2026 Regular Session.
#contractors #publiccontracts #retainagefees
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Bill Summary · SB 1587

Legislative bill overview

SB 1587 modifies Hawaii's retainage laws, which govern how much money contractors and subcontractors can withhold from payments on construction projects. The bill adjusts the conditions and percentages for retainage to provide clearer protections for workers and smaller contractors in the construction industry.

Why is this important

Retainage practices directly affect cash flow for construction workers and small subcontractors who often depend on timely payments to meet their own obligations. Changes to retainage rules can either ease financial burdens for those lower in the construction supply chain or, conversely, reduce protections that ensure final payment completion.

Potential points of contention

  • Contractor burden vs. payment security: Reducing retainage percentages helps small contractors but may concern project owners who use retainage as leverage to ensure quality work completion
  • Scope and applicability: Disputes may arise over which projects and contract types the new retainage rules apply to (public works, private construction, etc.)
  • Implementation timeline: Questions about when amended retainage rules take effect and whether they apply retroactively to existing contracts

Compiled from official sources — confirm details with the bill’s official record.

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