HRS § 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 ; 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.