HOUSE OF REPRESENTATIVES H.R. NO. 55 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII HOUSE 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.
HOUSE OF REPRESENTATIVES H.R. NO. 55
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE OF REPRESENTATIVES
H.R. NO.
55
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
HOUSE 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, 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 Resolution be transmitted to the Comptroller. OFFERED BY: _____________________________
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, 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 Resolution be transmitted to the Comptroller.
OFFERED BY: _____________________________
OFFERED BY:
_____________________________
Report Title: Construction Costs; Management; Department of Accounting and General Services; Study
Report Title:
Construction Costs; Management; Department of Accounting and General Services; Study