Hawaii House Bill HR55

Hawaii 2025 Regular Session

• Introduced: 3/5/25
• Refer: 3/14/25
• Report Pass: 4/3/25
• Passed: 4/3/25

Caption

Requesting The Department Of Accounting And General Services To Study The Feasibility Of Limiting The Costs Of Project And Construction Management In Each State Construction Project To Ten Percent Of The Total Cost Of The Project.

Summary

H.R. 55 is a House Resolution that asks the Hawaii Department of Accounting and General Services (DAGS) to study whether the State should cap project and construction management costs at 10% of the total cost of each state construction project. The resolution is framed as a response to rising construction expenses in Hawaii, noting that the State spends more than $1 billion annually on capital improvement projects and that Honolulu’s construction market is affected by high transportation, fuel, and labor costs. The resolution does not itself change procurement rules or impose a cap. Instead, it directs DAGS to evaluate the feasibility of such a limit and to report findings, recommendations, and any proposed legislation to the Legislature by twenty days before the 2026 Regular Session. The study would focus on whether a 10% ceiling could help control project overhead and improve the efficiency of state spending on roads, buildings, harbors, airports, and other public works.

Impact

Because H.R. 55 is a resolution requesting a study, its immediate legal effect is limited: it does not amend existing statutes, create a binding cap, or alter current contracting authority. Its practical impact is to place the issue of construction management overhead before DAGS and the Legislature, potentially leading to future legislation or administrative changes if the study supports a cap. The measure primarily affects state capital improvement planning, public construction contracting, and the agencies and contractors involved in managing state projects.

Sentiment

The overall sentiment reflected in the resolution is supportive of cost containment and fiscal oversight. The bill’s findings suggest concern that project and construction management fees have risen beyond traditional ranges and may be consuming too much of public construction budgets. No committee transcripts or recorded votes were provided, so there is no evidence of formal opposition or debate in the available record.

Contention

The main point of contention implied by the resolution is whether a 10% cap on project and construction management costs is realistic or appropriate in Hawaii’s high-cost construction environment. Supporters are likely to emphasize taxpayer savings and more efficient use of state funds, while potential critics could argue that a rigid cap may not account for Hawaii’s unique logistics, labor, and fuel costs, or could limit flexibility on complex projects. Because no hearing testimony or votes are available, the record does not identify specific legislators, agencies, or industry groups taking positions.