Hawaii requires prevailing wages on all state and county construction projects greater than $2,000. Wage rate schedules are issued approximately on February 15 and September 15 each year. Contractors must pay at least the basic hourly rate plus fringe benefits.
Hawaii has an active prevailing wage law (Hawaii Prevailing Wage Law (HRS Chapter 104)). Administered by Hawaii Department of Labor and Industrial Relations, Wage Standards Division. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Hawaii enforces a broad prevailing wage requirement under its Prevailing Wage Law (HRS Chapter 104), administered by the Department of Labor and Industrial Relations, Wage Standards Division. The coverage threshold is among the lowest in the nation: prevailing wages apply to all state and county construction projects greater than $2,000. In practice, that means nearly every public construction contract in Hawaii is covered, so estimators should treat prevailing rates as the default labor basis rather than the exception when bidding state or county work.
A critical estimating detail is that contractors must pay at least the basic hourly rate plus fringe benefits for each classification, not just the base wage. Omitting fringes from your labor buildup understates cost on every covered hour. Hawaii issues updated wage rate schedules approximately on February 15 and September 15 each year, and contractors must adjust wages when new schedules are published during a project. This mid-project escalation is the single biggest pricing pitfall: a bid locked to current rates can lose margin when a new schedule lands before the work is complete, so build escalation into longer schedules.
Certified payroll is required, documenting classifications, hours, base rates, and fringe payments for every worker. On federally funded Hawaii projects, Davis-Bacon applies in parallel, and you must pay the higher of the state or federal determination for each classification. Violations can result in back wages, debarment from public contracts, and civil penalties. Price the correct base-plus-fringe rate by classification, account for the twice-yearly rate updates across your schedule, and include certified payroll administration in your bid so compliance costs are captured before award rather than discovered during the job.
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Hawaii. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Contractors who fail to pay prevailing wages may be required to pay back wages, face debarment from public contracts, and be subject to civil penalties.