Senate committees back resolution urging prompt‑payment transparency for public construction

A joint hearing of the Senate Committee on Government Operations and Energy & Intergovernmental Affairs on April 2 advanced SCR 178 and SR 173, resolutions urging state and county agencies involved in public construction procurement to implement prompt‑payment transparency measures.

Tim Lyons, appearing remotely after being called by the committee, told senators that retainage practices—where the prime contractor withholds money from subcontractors—leave many subcontractors without contractual standing to obtain payment records from agencies. Lyons said DAGS created a prompt‑payment website after 2006 that helps contractors track payments, and he urged other agencies to follow suit so subcontractors can obtain timely information and payment. "Retainage is, of course, is a concept where government withholds, a little bit from the prime contractor to ensure everything goes right," Lyons said.

The chair read into the record multiple trade groups and individual supporters that filed written testimony, including the Sheet Metal Contractors Association of Hawaii, Plumbers and Mechanical Contractors Association, and Electrical Contractors Association. With no public testimony in person, the committee recommended the measures as submitted. During the committee vote the chair and vice chair recorded yes votes, Senator Moriwaki recorded an aye and Senator Hashimoto was excused; the joint hearing adopted the resolutions.

The resolution expresses appreciation to the Department of Accounting and General Services for its existing prompt‑payment website and asks other agencies to adopt similar transparency measures to reduce payment delays for subcontractors. Committee members framed the action as an encouragement rather than a statutory change; the measure is a formal statement urging agency practice changes.