Okada Trucking Bombshell

On January 28, 2002, the Hawaii Supreme Court issued a decision known as the Okada Trucking decision that caused quite a stir in the construction community. The decision disturbed a long standing practice in contracting that permitted licensed general contractors to perform almost all specialty work on projects that qualified as general contracting projects, without having to obtain the applicable specialty licenses. This work describes the evolution of the Okada decision, its varying interpretations, some of its impact on the construction community, attempts to mitigate its negative results, and gives a proposed permanent solution. Initially thought of as a decision of enormous impact, its negative effects have been muted by a common sense approach and cooperation among various competing groups in the industry and the Contractors License Board. Although serious problems remain, there is hope for a solution with the continued spirit of cooperation in the industry.