Bill > HR55

This resolution requests the Department of Accounting and General Services (DAGS) to conduct a feasibility study on limiting project and construction management costs for state construction projects to ten percent of the total project cost. The resolution highlights that Hawaii currently spends over $1 billion annually on capital improvement projects, and construction costs in Honolulu are among the highest globally due to factors like transportation expenses, fuel costs, and high labor rates. The resolution notes that project management costs have increased from a traditional range of seven to eleven percent to potentially up to fifteen percent in recent years. DAGS is specifically asked to submit a report with findings and recommendations, including potential legislation, no later than twenty days before the 2026 Regular Session. The resolution aims to help the state more efficiently manage and control construction-related expenses by potentially establishing a cap on management costs. A certified copy of the resolution will be transmitted to the Comptroller, indicating the formal nature of this request for study and potential cost management.

Budget and Finance

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HR&billnumber=55&year=2025