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Hawaii bonds

Hawaii — Concessionaire Bond

For public concession performance security under HRS §102-11, a Hawaii bond backs full and faithful performance of the contract for the State or county. Arrange the required security before entering the contract and keep it separate from bid-stage security.

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Recorded state
Hawaii
Category
Business operations & taxes

What this bond does

Help a concession operator prepare the performance security requested for a Hawaii public-property contract governed by HRS §102-11.

Who needs it
Operators asked to furnish performance security for a State or county public-property concession under Chapter 102. Use the officer's written request to identify the contract and accepted security.
Who it protects
For performance security under HRS §102-11, the condition is full and faithful performance of the contract, benefiting the State or county as applicable. A §102-8 bid bond instead concerns entering the contract and furnishing satisfactory security after award. Confirm which accepted condition this offering must meet.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details

Chapter 102 defines concessions on government property to include public sales of goods or services, vehicle rentals and specified parking, advertising and communications uses. Section 102-11 addresses security for performance of the concession contract. Section 102-8 separately addresses a bidder's promise to enter the contract and furnish satisfactory security after award; do not substitute one obligation for the other.

For performance security under §102-11, the statutory minimum is two months' rental and other charges. If the contract requires less than four months' security, the section allows listed alternatives to a bond; at four months or more it requires a good and sufficient bond. In-bond merchandise at Daniel K. Inouye International Airport has a specific minimum tied to the highest minimum annual rental guaranty. That exception is not a rule for every airport concession. Obtain the officer's actual calculation and accepted security instructions.

Purchase Now opens Propeller's Hawaii concessionaire application in a new tab. Bring the actual written bond request and complete accepted undertaking, legal operator name, agency, premises, contract or bid reference, amount and dates. Have the requesting officer and provider establish the stage, condition and this exact offering's fit before paying. Execute and deliver it as instructed and retain acceptance; buying a bond does not select the concessionaire or complete the operating contract.

Sources

Have these ready

  1. Identify the requesting agency, property, concession activity and contract or bid reference.
  2. Establish bid-stage versus contract-performance security from the actual written request.
  3. Obtain the accepted undertaking and officer's calculation, including any applicable airport merchandise provision.
  4. Confirm State versus county beneficiary, acceptable surety, signatures, coverage dates and delivery instructions.

Questions about this bond

Are the bid bond and performance security the same obligation?

No. Section 102-8 conditions bid security on entering the contract and furnishing satisfactory security after award. Section 102-11 conditions performance security on full and faithful contract performance. Match the actual requested stage and form.

Does every public concession have to use a bond?

Section 102-11 allows specified alternatives when required performance security is less than four months' rental and other charges. For security at four months or more, it calls for a good and sufficient bond. Ask the officer what your contract requires.

Does the airport provision apply to every concession at HNL?

The special statutory minimum concerns sale and delivery of in-bond merchandise at Daniel K. Inouye International Airport. Do not apply that rule to another activity without the requesting officer's instructions.

Who is protected by the performance security?

Section 102-11 requires it to benefit the State or the county, as applicable. Obtain the actual accepted form for the proper named beneficiary; do not assume all Hawaii concessions use the same agency name.

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