Editor’s note: Since this article’s publication in February, state lawmakers appropriated $27 million for construction, mostly to address the leaking roof at the new hospital building built by Hensel Phelps Construction Co. Lawmakers earmarked another $10.6 million to address other problems with the building including mold, and to conduct an engineering evaluation. Also included in that money is $2 million to hire outside counsel to pursue potential claims against Hensel Phelps. State Comptroller Keith Regan said the company has “been responsive, and has been trying to address some of the issues that have come up.” But he said the state is doing all it can to recover all costs related to the construction “deficiencies.”

The cost to fix defects at a building that opened three years ago at Hawaiʻi State Hospital is now expected to reach nearly $37 million, and frustrated lawmakers are pushing the state administration to find a way to recoup that money from the contractor and consultants involved in the project.

State Rep. Scot Matayoshi said Wednesday he doesn’t understand why the state is “tiptoeing around” the issue of who is responsible for the shoddy construction of the hospital’s Hale Hoʻōla Building, including design flaws, leaks and mold.

He suggested it is time for the state Attorney General’s Office to take aggressive action against developer Hensel Phelps Construction Co., which completed the building and turned it over to the state in 2021.

“I don’t know why the state isn’t going kind of full force with these guys, because they’re costing us $40 million,” Matayoshi said during a hearing of the House Health Committee. “Why aren’t we more publicly going after them in, say, a lawsuit?”

Deputy Attorney General Jin Tae Kim said his office is conducting an inquiry into the problems with the building and working with Hensel Phelps to try to resolve the issues. He declined to discuss any legal matters or speculate on any possible legal action.

The $160 million Hale Hoʻōla Building was supposed to address overcrowding at the Hawaiʻi State Hospital for the mentally ill, but employees there almost immediately identified a variety of flaws and safety hazards that delayed the opening of the facility for a year.

Things went downhill from there. Lawmakers on Wednesday saw pictures of deteriorating air conditioning equipment, clogged drains that somehow became filled with grout, and leaks and mold throughout the building.

Gordon Wood, public works administrator for the Department of Accounting and General Services, told lawmakers there is a “great probability” water leaking into the structure has been infused into the walls as well.

The facility gym remains closed because thick metal screening over the windows deteriorated to the point that “little daggers” were falling from the screens into the gym, he said.

DAGS is asking for $6.16 million to immediately address leaks, mold and other problems throughout the structure along with another $2 million to cover unspecified legal costs.

Wood told lawmakers on Wednesday DAGS is now also asking for another $28.8 million for longer-term repairs that would include a new roof for the 170,000-square-foot building.

“Just giving out $40 million after we just gave $160 (million) is not going to go good with the people of Hawaiʻi,” Rep. Ikaika Olds said after the Health Committee briefing. “They’re going to be very upset about this, and they’re going to want to know who was incompetent, and why are we giving up our tax monies for this, and we’re all going to be held accountable to that.”

Hensel Phelps developed the 144-bed Hale Hoʻōla Building under a design-build contract with the state. It is a secure forensic psychiatric facility, meaning it houses patients who have been accused of a crime and are referred to the hospital by the court system for mental health evaluations or treatment.

According to the state Department of Health, staff at the facility encountered problems related to poor design and construction after the two-year construction warranty period had ended. The department said “at the time of project acceptance, the State was unaware of any defects that would have warranted rejection.”

DAGS and the health department said in a joint written statement Tuesday that Hensel Phelps has made some repairs under the warranty provision in the contract, but refused to make other repairs “that it claims fall outside the warranties.”

The emergency funding request for more than $8 million in immediate repairs and legal costs is included in Senate Bill 1448. The request for the additional $28.8 million for longer term repairs including a new roof is pending in Senate Bill 1105.

Civil Beat’s community health coverage is supported by the Atherton Family Foundation, Swayne Family Fund of Hawai‘i Community Foundation, the Cooke Foundation and Papa Ola Lōkahi.