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Hawaii Waivers


  • A waiver of claim may be included in contract negotiations. If the contract has a “no lien” clause and the contract is clear, unambiguous and complies with requirements governing Hawaii lien statutes, then the court will generally uphold that “no lien” contract provision.
  • Pay-if-paid terms are presumably invalid due to lack of clear and unequivocal waiver.
  • “Paid if Paid” is enforced if explicit.
  • “Pay when Paid” suggests time for payment.
  • There are no cases from courts regarding this statute, but the language of the statute does suggest the enforcement of a contingent payment clause.  HRS § 444-25: If payment is contingent upon receipt of funds, the contractor shall clearly state this fact in the contractor's solicitation of bids.

Retainage Provisions

Public

  • REV. STAT. §103-32.1 Contract provision for retainage; subcontractors.  The sum withheld by the procurement officer from the contractor shall not exceed five per cent of the total amount due the contractor and that, after fifty per cent of the contract is completed and progress is satisfactory, no additional sum shall be withheld; provided further that if progress is not satisfactory, the procurement officer may continue to withhold, as retainage, sums not exceeding five per cent of the amount due the contractor; The contractor may substitute securities in lieu of retainage. HAW.  103.32.1.