§104-4 - Termination of work on failure to pay agreed wages; completion of work; contract and specifications provision.
§104-4 Termination of work on failure to
pay agreed wages; completion of work; contract and specifications provision.
Every contract and the specifications for such contract shall contain a
provision that if the governmental contracting agency finds that any laborer or
mechanic employed on the job site by the contractor or any subcontractor has
been or is being paid wages at a rate less than the required rate by the
contract or the specifications, or has not received the laborer's or mechanic's
full overtime compensation, the governmental contracting agency may, by written
notice to the contractor, terminate the contractor's right, or the right of any
subcontractor, to proceed with the work or with the part of the work in which
the required wages or overtime compensation have not been paid and may complete
such work or part by contract or otherwise, and the contractor and the
contractor's sureties shall be liable to the governmental contracting agency
for any excess costs occasioned thereby. [L 1955, c 133, pt of §2; RL 1955,
§9A-3; HRS §104-4; gen ch 1985]
Attorney General Opinions
The notion of immediately suspending a contractor from doing
work was contemplated as evidenced by this section's requirement that a public
work contract contain specifications which allow the governmental contracting
agency to "terminate the contractor's right...to proceed with the work or
with the part of the work in which the required wages or overtime compensation
have not been paid". Att. Gen. Op. 97-8.