STAND. COM. REP. NO. 403-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2210

H.D. 2

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred H.B. No. 2210, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ECONOMIC DEVELOPMENT,"

begs leave to report as follows:

The purpose of this bill is to avoid inadequate design and planning that result in poor-quality construction and excess costs by requiring value engineering and charrette services for construction, infrastructure, and transportation projects that cost more than $2,500,000.

Hawaiian Cement/Hawaiian Laboratories, the Lawrence D. Miles Value Foundation, Division of Construction Engineering and Management of Purdue University, USI-Hawaii, Inc., Value Management Institute, VT Griffin Services, Inc., and a concerned individual testified in support of this measure. The Department of Accounting and General Services opposed this measure. The American Institute of Architects Hawaii State Council offered comments.

Your Committee notes that the Department of Transportation should be considered within the measure. Your Committee also recognizes legitimate concerns raised by the Department of Accounting and General Services, such as:

 

(1) Requiring an engineering methodology that is best used as part of the project planning, design, and implementation process, rather than apart from it;

(2) Implementing an impractically rigid process that ignores management discretion; and

(3) Adding complexity, consultants, and delays to projects, thereby increasing rather than decreasing costs.

Your Committee has amended this bill by changing the effective date to July 1, 2020, to facilitate further discussion.

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2210, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2210, H.D. 2, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Economic Development and Business Concerns,

 

____________________________

BRIAN SCHATZ, Chair