(a) A contractor awarded any contract shall ensure that Hawaii residents compose not less than eighty per cent of the workforce employed to perform the contract on a particular construction project, as determined under subsection (b). Prior to an award of a contract, the contractor may withdraw a bid without penalty if the contractor finds that it is unable to comply with this subsection.
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Terms Used In Hawaii Revised Statutes 103B-3

(b) The eighty per cent requirement under subsection (a) shall be determined by dividing the total number of hours worked on a contract by residents, by the total number of hours worked by all employees of the contractor in the performance of the contract. Hours worked for any subcontractor of the contractor shall count towards the calculation for purposes of this subsection. The hours worked by employees within shortage trades, as determined by the department of labor and industrial relations, shall not be included in the calculations for purposes of this subsection.
(c) Certification of compliance with this chapter shall be made under oath by an officer of the general contractor and applicable subcontractor to the procurement officer with the notice of completion of the contract.
(d) A general contractor or subcontractor who fails to comply with this chapter shall be subject to sanctions as follows:

(1) With respect to the general contractor, withholding of final payment on the contract until the contractor complies with subsection (a); or
(2) With respect to the general contractor and subcontractor, proceedings for debarment or suspension of the contractor or subcontractor under § 103D-702; provided that a general contractor shall not be sanctioned for noncompliance with this section by a subcontractor of that general contractor on the same contract.
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