HONOLULU – The Hawaii Department of Transportation (HDOT) is pleased to announce that subcontractors and suppliers that have been owed money for completed work are now receiving payment and others will be paid. The State is using Act 19 (2017), formerly HB1022, to pay subcontractors and suppliers directly for work performed on the Hawaiian Airlines Terminal Maintenance and Cargo Facility at the Daniel K. Inouye International Airport (HNL).
“Although HDOT was not legally obligated, we had to make a good faith effort to pay the suppliers and subcontractors that worked on the Hawaiian Airlines Terminal Maintenance and Cargo Facility and we are happy to report that checks are signed and in the mail,” said Ford Fuchigami, Hawaii Department of Transportation Director. “Act 19 allowed us to use the airport revenue funds to provide compensation directly to the subcontractors and suppliers.”
“The Legislature passed Act 19 and Governor Ige signed it into law on May 18,” said Doug Chin, Hawaii Attorney General. “This resolved more than 20 potential lawsuits all at once and has saved the State years of costly litigation. Plus, it was the right and fair thing to do.”
HDOT terminated the general contractor on the Hawaiian Airlines Terminal Maintenance and Cargo Facility for cause and learned more than $2 million that should have been paid to suppliers and subcontractors had been retained by the general contractor. Under a construction contract, HDOT pays the contractor who is then supposed to pay subcontractors for work performed. Act 19 (2017) allowed HDOT to pay the subcontractors on this project directly through settlements.
For more information on the Hawaiian Airlines Terminal Maintenance and Cargo Facility project see http://hidot.hawaii.gov/airports/hdot-working-toward-resolving-claims-of-companies-left-unpaid-by-contractor/
For the full text of Act 19 (2017) including Gov. Msg. No. 1119 signing it into law, see http://www.capitol.hawaii.gov/session2017/bills/GM1119_.PDF