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Hawaii Public Procurement Bonds

Hawaii procurement rules link required bid, performance, and payment bonds to the threshold in HRS §103D-305. For covered construction, bid security is at least 5% and performance and payment bonds are each 100% of contract price. A correct dollar amount alone may not cure a mismatched form or obligee name. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Hawaii Requirements

RequirementDetails
Construction bid securityConstruction bids exceeding the §103D-305 limits require bid security of at least 5% of base bid plus additive alternates; missing required security is ordinarily nonresponsive. 1,2
Separate construction bondsWhen the threshold applies, performance and payment bonds are each 100% of construction contract price; a reduction requires the procurement officer’s written determination under the rule. 1
Threshold referenceThe 2025 procurement code desk reference states that construction bid security applies when estimated contract price exceeds $25,000; verify the current procurement code and solicitation before relying on that figure. 2,1

What to Watch for in Hawaii

  • Match the stated owner and amount

    Hawaii procurement decisions summarized by the state’s 2025 Desk Reference describe bids rejected when a bond stated “5% of bid” instead of the required fixed dollar amount, and require the State of Hawaii to be identified as owner where the rule protects the State. Copy the solicitation’s precise wording. 2,1

  • Include additive alternates

    The five-percent bid-security calculation includes base bid and additive alternates. Recalculate if an addendum changes quantities or alternates, and confirm the bond remains sufficient. 1

  • Goods and services use a different cap

    For goods and services, performance and payment bonds each may not exceed 50% of contract price and require chief procurement officer approval; those terms do not apply to construction bond amounts. 1

Who Regulates Insurance in Hawaii

Hawaiʻi Insurance Division

The Insurance Division oversees insurance companies and producers, examines Hawaiʻi-based insurers, reviews rate and policy filings, and investigates insurance complaints. It is part of the Department of Commerce and Consumer Affairs. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 4.68% of premium when Hawaiʻi is the home state Hawaiʻi applies a 4.68% tax when it is the insured’s home state. Surplus-lines coverage is placed with an unauthorized insurer, so do not assume the Hawaiʻi Insurance Guaranty Association protects the policy; confirm the insurer’s status and policy terms with your broker. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Hawaii. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 13

Questions to Ask Before You Buy in Hawaii

  1. Which solicitation, statute, and project category does the obligee say governs this contract?
  2. What bond form, penal sum, obligee name, effective date, and filing deadline must the surety meet?
  3. What indemnity, collateral, or personal guarantee would the surety require from the principal, and how could a claim affect the business?

Surety Bonds in Hawaii: FAQ

Can the State reduce the construction bonds? 1

The rule permits written determinations to reduce bond amounts, including a pre-deadline construction reduction to at least 50%; the procurement officer may also reduce bonds during performance or add bond amounts after change orders. 1

Who does each project bond protect? 1

The rule calls the performance bond security for contract completion and the payment bond for labor and material claimants. They are separate obligations and are not a promise that the contractor’s own losses are insured. 1

Surety Bonds in Other States

Other Coverage in Hawaii

Sources

  1. Hawaii Administrative Rules §3-122-223 to §3-122-227. Hawaii State Procurement Office; Subchapter 15, bid security and contract performance/payment bonds, lines 795–845; rule compiled March 21, 2008. Accessed 2026-09-28.
  2. 2025 Public Procurement Code Desk Reference. State of Hawaii, Procurement Policy Board/Hearings Officer; Section VIII.A, pp.41–42; HRS §103D-323 threshold and procurement decisions on bond amount/owner; PDF posted March 2026. Accessed 2026-09-28.
  3. Insurance Division. Hawaiʻi Department of Commerce and Consumer Affairs; Official division homepage; scope, license search, complaints, contact information. Accessed 2026-09-28.
  4. Insurance Licenses and Registrations. Hawaiʻi Insurance Division; Insurance license information; links to state-based system for license applications and status. Accessed 2026-09-28.
  5. Filing a Complaint. Hawaiʻi Insurance Division; Online complaint form and published consumer phone. Accessed 2026-09-28.
  6. Surplus Lines Tax. Hawaiʻi Insurance Division; 4.68% rate and home-state application under HRS § 431:8-315. Accessed 2026-09-28.
  7. HRS § 431:16-105: Definitions. Hawaiʻi Legislature; Defines a member insurer as an insurer licensed or holding a certificate of authority in Hawaiʻi; cross-read with HRS § 431:8-102 and § 431:8-301 for unauthorized surplus-lines placements. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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