Bonding - HPM Building Supply
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HPM provides bonding services for your project


When you bond with HPM, you’ll enjoy a clear and well-defined process while working with experienced staff. We charge no fees for the program and offer electronic form signing for a streamlined process.

Material house bonds allow financially sound lumber and building material suppliers to issue bonds, which give guarantees to the owner and financial institution providing a construction loan. It ensures that the project will be completed in accordance with the construction contract, plans, and specifications. Additionally, all suppliers and subcontractors who provided materials and services for the specific project will be paid.

Frequently Asked Questions

  • What is a bond?

    A bond is a guarantee to the bank and owner that a project will be completed per plans and specifications. It also ensures that all suppliers and subcontractors on the project will be paid through the bond expiration period.

  • When is a bond required?

    Financial institutions in Hawai'i require a bond to make a residential construction loan, securing the bank’s collateral for the construction loan. However, a homeowner funding their own project may request a bond to be furnished by their contractor.

  • Does HPM bond Owner-Builders?

    Some bonding companies and financial institutions will work with owner-builders on a case-by-case basis. HPM will bond owner-builders if they meet our underwriting criteria. Please contact our bonding team for further information.

  • Are there any fees for material house bonds?

    No, material houses are not legally allowed to charge a fee for the service. HPM agrees to bond a project assuming 20-25% of the bond amount in material will be purchased from HPM. HPM believes we are price-competitive and have access to the widest selection of products and the best service package in our market.

A Homeowner’s Guide to Bonding

Determine the type of material and/or finishes you want, and let your planning consultant, draftsperson, or architect know what to include in your plans. This will help your contractor determine the final contract amount, including allowances. If you also put your plans out to bid, you should receive a return of bids that are comparable.

Do your homework and select a contractor who will meet your expectations for quality and workmanship, as the bond is in place to ensure completion only. Ask for references, and check licenses and/or prior complaints with the State of Hawaii Department of Commerce and Consumer Affairs (DCCA).

Be patient. Sometimes, the key parties involved in the construction and loan process can’t move forward without another’s cooperation.

Know the Roles

 Here is a general breakdown of each party and their roles in the bonding process:

  • Home Planning Consultant/ Draftsperson/ Architect – Design and Selections
  • Draftsperson/Architect/Engineer – Plans/Stamping
  • County Building Department – Building Permit
  • Contractor – Bid Proposal, Bonding Application
  • Bonding Company – Underwriting, Bonding Documents, Administration of Funds
  • Bank – Underwriting, Appraisal, Closing, Disbursements
  • Escrow Company – Title Insurance/Convey Title

Homeowner Benefits

  • Guaranty that a bonded project will be completed.
  • HPM performs extensive prequalification reviews on contractors and their projects, reducing the possibility of contractors underbidding/underestimating.
  • Relieves the owner of financial loss arising from liens field by unpaid supplies and/or subcontractors.
  • HPM accounts for receipt and disbursement of payments, reducing the possibility of a contractor diverting funds from the project to another.
  • If required, HPM provides assistance in resolving disagreements
  • No charges or fees of the program

Are you a first time home builder?

Read our Home Planning Guide that walks you through the steps of building an HPM Home.

Have questions or need assistance?

If you have questions or need assistance with bonding, please call (808) 966-5466 on Hawaiʻi Island or (808) 435-9169 on Kauaʻi, Maui, and Oʻahu.