New compliance initiative launched for oversight of public construction projects

Pacific Resource Partnership, in collaboration with the Hawai‘i Regional Council of Carpenters, has undertaken a new compliance initiative to strengthen oversight of publicly funded construction projects.

“It’s been PRP’s experience that whenever there’s an uptick in construction projects, such as what is occurring with the rebuilding of Lahaina, unscrupulous contractors tend to become more active, whether bidding for taxpayer funded projects or those paid for with private capital,” said Nathaniel Kinney, PRP’s executive director. “By letting contractors know that PRP will be watching to make sure all federal, state, and county laws are followed during construction, we are ensuring that tax dollars don’t go to contractors who cut corners, depress wages and put workers’ safety at risk.”

As part of its effort, PRP will send letters to all contractors awarded county, state or federal public projects, notifying them that their work will be reviewed for compliance with all applicable laws, including prevailing wages, worker classification, certified payroll and overtime pay.

“Fairness and accountability are the cornerstones of a thriving construction industry,” Kinney said. “Our new compliance initiative sends a clear message: every contractor working on public projects in Hawai‘i must follow the rules. By enforcing compliance, we’re protecting workers, supporting ethical businesses, and ensuring that our communities benefit from quality construction that meets the highest standards.”

According to an announcement from PRP, the proactive strategy underscores its commitment to ensuring a level playing field in Hawai‘i’s construction industry, particularly during the current surge in construction activity that continues to underpin the state’s economy.

“PRP’s compliance initiative aims to hold all contractors accountable to the highest standards of integrity and fairness,” the announcement says. “If violations are found or suspected, PRP will work closely with federal, state and county partners to address issues promptly.” Meanwhile, workers can report suspected fraud anonymously by going to PlayFairInHawaii.com. 

The compliance initiative involves rigorous monitoring of public projects to verify adherence to labor laws and regulations, according to PRP. Its team will review certified payroll records, verify proper worker classifications and ensure that prevailing wages and overtime pay are correctly applied.

“This initiative not only safeguards workers’ rights but also promotes fair competition among contractors, fostering a construction industry that benefits all stakeholders,” the announcement says.

“During construction booms, we often see attempts to skirt regulations, which can lead to worker exploitation and substandard project outcomes,” said Micah Kim, PRP compliance manager. “Our role as a watchdog is to ensure that every contractor plays by the rules. This initiative empowers us to identify and address violations swiftly, protecting the integrity of Hawai‘i’s construction industry and the workers who build our communities.”