HONOLULU (HawaiiNewsNow) - A brand-new building at the Hawaii State Hospital in Kaneohe already needs nearly $40 million in repairs.
State officials faced outraged lawmakers Wednesday, who want to know why the construction company isn’t being sued over multiple hidden defects.
Many of the same problems have been reported at Hale Hoola before.
However, what started as a relatively minor punch list of small defects has turned into a gut punch for taxpayers and questions from lawmakers about whether the state is being tough enough on Hensel Phelps, the Colorado company that designed and built it.
State Rep. Scot Matayoshi said he was “pissed” because he had defended the project to his Kaneohe constituents.
“I don’t know why the state is not going full force on these guys,” Matayoshi said, “because they are costing us $40 million.”
The building, which cost $160 million, houses 144 of the most acutely mentally ill and dangerous patients.
It’s billed as state of the art, safe and secure when it was finished in 2021, but problems like unsafe door handles and improperly installed shower drains delayed the opening.
Now, state Public Works administrator Gordon Wood said problems, like corroding metals and pipes filled with grout, have emerged during repairs.
“Those are defects you can’t find until you start to tear things apart,” he said.
The state is asking lawmakers for $8 million for emergency repairs for safety and health and $28.8 million for long-term fixes, including a new roof.
Wood said it may not be the last request.
“You have to remember that we are continuing to investigate, and with latent defects we may find even more,” he said.
Marian Tsuji, deputy health director for behavioral health, said Hensel Phelps had failed to fix some of the issues.
“There’s a point at which you fix it, and the problem comes back and you fix it, and the problem comes back and then you fix it again, and the problem is still there,” Tsuji said.
Matayoshi responded, “If that’s the case we should be litigating right now.”
Deputy attorney general J.T. Kim said, “That option is always there.”
Kim also said they are trying to work with the company without litigation.
“If we to get into it then they become defensive unfortunately and then it might become a more longer process,” he said.
That brought out lawmakers’ frustrations.
WATCH THE FULL INFORMATIONAL BRIEFING:
Rep. Ikaika Olds acknowledged that the hospital is an essential resource, but spending $40 million on a new building would outrage taxpayers.
“I am going to have a really hard time going back to my constituents and telling them, ‘Hey, we had to drop $40 million that we may or may not get back because we don’t want to go through litigation to make this company upset,‘” Olds said.
State Rep. Lisa Marten pointed out that the $40 million would take away from other worthy projects, like schools.
“If it wasn’t our fault, then we would want it reimbursed so that we can use it for other important state projects,” she said. “I just want to make sure that we are not giving Hensel Phelps a free ride.”
Matayoshi, an attorney, said the state should have sued already to protect its rights and the evidence.
“I feel like we are really tiptoeing around,” Matayoshi said. “I am not sure what they have over us, and maybe you can’t tell us, that’s making us step so carefully.”
But some lawmakers, including health committee chair Gregg Takayama, were also suspicious that that state construction inspectors and consultants also failed.
“There should have been some kind of proactive action before we accepted the building,” he said.
Woods responded, “I don’t disagree with you.”
Hawaii News Now reached out via phone and email to Hensel Phelps and did not get a response.
The public works administrator said the company is still eligible to bid on state construction projects.
Copyright 2025 Hawaii News Now. All rights reserved.