A secret business transaction struck more than a decade ago at an Italian restaurant in Hawaii Kai laid the foundation for a nasty court conflict that now involves a Honolulu rail contractor accused of fraud, deceit, and profiteering.
An insignificant Kalihi construction firm and a well-known Hawaii corporation are at the core of the legal case. Nan Inc. just won its second multimillion-dollar contract for work along the city’s 20 mile elevated commuter train route.
Disputes over millions of dollars of contracts are being played out in two distinct courtrooms, with contending parties accusing each other of everything from dishonesty and deception to outright fraud and bookkeeping fraud.
SBA’s 8(a) Business Development Program for small economically disadvantaged businesses with a majority of women and minorities-owned firms has been shrouded in mystery and complexity since the allegations were made public.
No-bid government contracts and other preferential treatment are permitted under the program, which also permits small enterprises to create joint ventures with larger, more established organizations in order to compete on even larger contracts.
What more does Nan Chul Shin want to do in his life besides leading one of Hawaii’s top building contracting firms, Nan Inc.? Patrick Shin has never been driven only by money gain in his career. Not really a goal in and of itself, more of an ongoing quest. As a result, he was determined to have a positive impact on the state of Hawaii by working on important projects.
The SBA’s 8(a) and other programs helped Nan become a construction tycoon. A mentorship relationship and multiple cooperative ventures with Su-Mo Builders have maintained the company’s 8(a) status, even though it ceased its involvement in the program in 2004. An important focus of the state’s case is the alleged manipulation of this connection.
A total of at least $636 million in military contracts has been awarded to Nan since it started its contracting operations as Ocean House Builders more than 20 years ago. Nan earned $144.8 million as an 8(a) participant and another $262 million via agreements with Su-Mo, a firm founded by former Nan employee Su Yong Yi.
This does not mean that Nan has just worked with the military contractors. One of the greatest public works projects in Hawaii history, the Honolulu rail system is being built by a subsidiary of the corporation.
The Honolulu Authority for Rapid Transportation granted the business a $56 million contract last month to develop three west Oahu rail stations. Nan secured the contract with a price that was $10 million less than its closest competitor’s and about $25 million less than HART’s estimate of the cost.
Hawaii’s Construction Industry in 2020: A Prediction
According to these sources, Hawaii’s construction activity is likely to continue at a high pace in 2020 and the following several years.
Read more: All you need to know about Nan Chul Shin
Long-term employment prospects in the building trades are quite promising. Is there a private sector component to any of the numerous large-scale public sector projects (like as rail transit) and high-rise residential development projects on Oahu? A consistent stream of projects for many years to come is ensured in this way!