HCR 59: 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.

HOUSE CONCURRENT

RESOLUTION

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.

     WHEREAS, the State expends more than $1 billion per year on capital improvement projects, including construction or renovation of roads, buildings, harbors, and airports; and

     WHEREAS, Honolulu has some of the highest construction costs in the world due, in part, to the high cost of transporting goods to Hawaii, the cost of fuel, and high labor costs; and

     WHEREAS, the costs for project and construction management, which traditionally should account for seven to eleven percent of a project, have increased significantly over the last decade, with some contractors charging as much as fifteen percent of a project's cost for management expenses; and

     WHEREAS, being able to control rising construction costs would help to more efficiently use state funds; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, the Senate concurring, that the Department of Accounting and General Services is requested to study the feasibility of limiting the costs of project and construction management costs in each state construction project to ten percent of the total cost of the project; and

     BE IT FURTHER RESOLVED that the Department of Accounting and General Services is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and

     BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Comptroller.

Report Title: 

Construction Costs; Management; Department of Accounting and General Services; Study

STAND. COM. REP. NO. 1937

Honolulu, Hawaii

RE:    H.C.R. No. 59

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Government Operations, to which was referred H.C.R. No. 59 entitled:

"HOUSE CONCURRENT RESOLUTION 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,"

begs leave to report as follows:

     The purpose and intent of this measure is to request 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.

     Your Committee received testimony in support of this measure from the Department of Accounting and General Services and one individual.

     Your Committee finds that the State expends more than $1 billion annually on capital improvement projects, a large portion of which is allocated to exceptionally high construction costs due to the high price of labor, fuel, and transporting goods to the islands.  Your Committee further finds that already high construction costs have been inflated by significant hikes in the costs of project and construction management in recent years.  These costs, which traditionally accounted for seven to eleven percent of a project, have risen to as high as fifteen percent of a project's cost in the last decade.  Therefore, this measure will facilitate more efficient use of state funds by requesting the Department of Accounting and General Services to conduct a feasibility study on limiting project and construction management costs to ten percent of the total cost of a state construction project.

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 59, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Government Operations,

STAND. COM. REP. NO.  1796

Honolulu, Hawaii

                , 2025

RE:   H.C.R. No. 59

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred H.C.R. No. 59 entitled:

"HOUSE CONCURRENT RESOLUTION 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,"

begs leave to report as follows:

     The purpose of this measure is to request 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.

     Your Committee received testimony in support of this measure from the Department of Accounting and General Services and one individual.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 59 and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Finance,