If enacted, HB 2567 would mandate the inclusion of specific clauses in every construction contract concerning site conditions. These adjustments would require procurement officers to investigate reported differing site conditions and make necessary contract modifications that reflect any increases or decreases in costs or required work time. This change could lead to more accurate bidding processes, potentially lowering overall project costs for public works by eliminating excessive risk premiums included in bids due to the fear of unforeseen site conditions.
Summary
House Bill 2567 proposes amendments to the Hawaii Public Procurement Code to address issues related to differing site conditions encountered by contractors. The bill intends to ensure that the financial burdens caused by unexpected site conditions are equitably shared between contractors and governmental bodies. It aims to prevent contractors from absorbing all risks associated with conditions that significantly deviate from initial assessments or plans. By realigning state regulations with the Federal Acquisition Regulation, the bill seeks to mitigate unwarranted inflation of bid costs caused by contractors needing to account for unexplored risks in their proposals.
Contention
Notable points of contention may arise regarding the division of risk and the contractual obligations of contractors versus the state agencies. Supporters of the bill assert that it will create a fairer procurement system and enhance contractor competitiveness by allowing them to provide more precise bids without inflated contingencies. Opponents may criticize the requirement for government bodies to conduct more thorough investigations into site conditions and the associated administrative overhead, which could complicate procurement processes. Additionally, there may be concerns about the adequacy of the evidence needed to substantiate claims of differing site conditions.