District Council 50, of the International Union of Painters & Allied Trades v. Saito

216 P.3d 108, 121 Haw. 182, 2009 Haw. App. LEXIS 587, 2009 WL 2712989
CourtHawaii Intermediate Court of Appeals
DecidedAugust 31, 2009
Docket27927
StatusPublished

This text of 216 P.3d 108 (District Council 50, of the International Union of Painters & Allied Trades v. Saito) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
District Council 50, of the International Union of Painters & Allied Trades v. Saito, 216 P.3d 108, 121 Haw. 182, 2009 Haw. App. LEXIS 587, 2009 WL 2712989 (hawapp 2009).

Opinion

Opinion of the Court by

FUJISE, J.

This case arises out of the award of a capital improvements contract to a general contractor without certain specialty licenses. It comes before this court to review the judgment and order entered by the Circuit Court of the First Circuit (circuit court) 1 ruling that it lacked jurisdiction over the matter.

I.

On January 31, 2005, the State of Hawai'i Department of Accounting and General Services (DAGS) issued a notice to bidders requesting sealed bids for job number 52-16-5581, a public works project to renovate and paint various buildings at Lanakila Elementary School (Project). To be eligible, the bidder was required to hold a “State of Hawaii Contractor’s license classification B.” 2

Pertinent to this appeal, the Project involved the installation of aluminum jalousie windows (jalousies). The Project specifications contained detailed requirements for the manufacture and installation of the jalousies. The bids were opened on March 3, 2005, and Allied Pacific Builders (Allied) was the lowest bidder on the Project.

Allied held a class “B” contracting license. When Allied bid on the Project, it filled out a form indicating all of the specialty licenses it *184 or its subcontractors possessed. 3 Allied did not indicate that it held a C-22 glazing and tinting specialty license, nor did it list a subcontractor holding such a license, 4 on the bid form. Whether the winning bidder should have been required to hold such a license or list such a subcontractor was the subject of the underlying dispute in this case.

BCP Construction of Hawaii, Inc. (BCP) was also a bidder for the job and submitted the next lowest bid. On March 7, 2005, BCP wrote a letter of protest to DAGS. In BCP’s view, because Allied “did not list a C-22 (GLAZING) contractor to install the new [jalousies] ... their bid should be considered non responsive [sic] and rejected by the State of Hawaii.” On March 17, 2005, Allied requested that the Contractors License Board for the State of Hawai'i (CLB) issue a ruling on whether Allied was “qualified to complete the replacement of the [jalousies] as specified for this [Project].” On March 21, 2005, the CLB responded,

Based solely on the information you provided, the Board determined that if the renovation work performed by the “B” General Building contractor falls within the scope of the C-5 Cabinet, millwork, and carpentry remodeling and repairs classification,[ 5 ] and the replacement of aluminum jalousie windows is part of the renovation work, then the jalousie work may be performed by the “B” General Building contractor.
In accordance with Section 16-201-90, [HAR], the above interpretation is for informational and explanatory purposes only. It is not an official opinion or decision and thus is not binding on the Board.
If a formal or binding opinion is requested, a petition for declaratory relief must be filed with the Board....

Aloha Glass Sales & Service, Inc., Plaintiff-Appellant herein, (Aloha Glass) was a subcontractor listed by another bidder for the Project. In a May 16, 2005 letter to DAGS, Aloha Glass explained its belief that Allied did not hold a C-22 license, no C-22 specialty contractor was listed on the bid form, and the jalousie-installation work constituted more than 1% of the Project and therefore called for a C-22 license. Aloha Glass then asked whether DAGS “[w]ill disqualify [sic] their bid?” On May 20, 2005, DAGS responded:

The [Project] is currently under a protest on the low bidder’s failure to list a C-22 glazing subcontractor for the replacement of the aluminum jalousie windows and a C- *185 51 6 ceramic tile subcontractor for the ceramic tile work. Previous inquiry to the [CLB] has provided informational and explanatory interpretation that the B general building contractor may, under their C-5 cabinet, millwork, and carpentry remodeling and repairs classification, do the replacement of aluminum jalousie windows which is part of the renovation work. This is currently still their position although it is not binding on the board.
DAGS will follow their interpretation in reviewing the subcontractor listing.

On July 1, 2005, the administration of the contract was transferred from DAGS to the State of Hawai'i Department of Education (DOE).

On July 15, 2005, DAGS petitioned the CLB for a “formal interpretation on what is incidental and supplemental work that can be performed by ‘B’ General building contractor....” On September 8, 2005, District Council 50 of the International Union of Painters and Allied Trades, Plaintiff-Appellant herein, (DC 50) moved to intervene. DC 50 is a union representing the painters, glaziers and glass workers, carpet and soft tile installers, and drywall finishers of Hawai'i. DC 50 claimed that it was “compelled to intervene on behalf of the glaziers and carpet layers to protect their interests[.]” DC 50 requested that the CLB find that a “B” General Building Contractor with its automatic C-5 license could not perform, inter alia, the kind of work covered by a C-22 license.

On September 8, 2005, a hearing before the CLB was set for October 18, 2005. However, on September 28, 2005, DAGS withdrew its petition for declaratory relief.

On November 15, 2005, DOE responded to BCP’s March 7, 2005 letter, informing BCP that it had taken control over the Project and would proceed with the bid: “In reviewing the unofficial opinion of the [CLB] dated March 21, 2005, the [DOE] views that installation of the [jalousies] is permissible under the C-5 license.” Thus, the DOE “dismissed” BCP’s “concerns” and stated that the DOE “intends to proceed with award of this solicitation based upon the bid results.”

On November 21, 2005, BCP again wrote to the DOE, stating that,

[i]t was our intended and now official statement that there is “GLAZING” involved in this project and the apparent low bidder does not posses this “SPECIALTY” C-22 (Glazing) license as required to perform the glazing work as identified in ... [the project specifications].

BCP also requested a “complete ‘OFFICIAL’ review of our position and a response prior to the award of this [Project]....”

The DOE responded on December 19, 2005, stating,

pursuant to the requirements of the Okada Trucking decision, the acceptance of the bid is in the best interests of the State; and the value of the work to be performed by the joint contractor is equal to or less than one percent of the total bid amount. Under the foregoing analysis, the apparent low bid is accepted. Notice of award shall be issued on December 20, 2005. Subject to HAR § 3-126-4 you have 5 working days from this date to file an official protest.

On December 21, 2005, BCP submitted an official protest to the DOE.

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Bluebook (online)
216 P.3d 108, 121 Haw. 182, 2009 Haw. App. LEXIS 587, 2009 WL 2712989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/district-council-50-of-the-international-union-of-painters-allied-trades-hawapp-2009.