Report Title:

Construction Costs; County Reports

 

Description:

Requires a quarterly report from each county listing every change order, contract modification, or other contract price adjustment which causes the county's expenditure for a county construction project assisted by the State to increase by either: (1) 5% of the original contract amount; or (2) $50,000.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

364

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO county CONSTRUCTION projects.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to require periodic reports from the counties on certain change orders, contract modifications, and other contract price adjustments for county construction projects assisted by the State.

The legislature intends that section 103-10.5, Hawaii Revised Statutes, apply to the new section added by this Act.

SECTION 2. Chapter 103, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:

"103- County report of change order, contract modification, or other contract price adjustment for county construction project assisted by the State. (a) For the purpose of this section:

"County construction project assisted by the State" means a public works project of a county involving:

(1) Construction through a contract with a contractor; and

(2) Payment to or reimbursement of the contractor, either totally or partially, with:

(A) State funds; or

(B) Federal funds granted to the State and then allocated or awarded at the State's discretion to the county. This subparagraph does not include federal funds passed through the State and distributed to the county pursuant to a non-discretionary formula established by federal law or regulation.

"Original construction contract" means an original contract for construction executed between a county and a contractor before any modification.

"Original construction contract amount" means the dollar amount payable, reimbursable, or both, by a county to a contractor under an original construction contract. If the original construction contract does not set forth a firm fixed price, the "original construction contract amount" shall be the maximum dollar amount identified under the contract as payable, reimbursable, or both, by the county. If the original construction contract does not set forth a firm fixed price or maximum dollar amount, the "original construction contract amount" shall be the dollar amount estimated by the county as payable, reimbursable, or both, by the county at the time of the county's execution of the contract.

"Other contract price adjustment" means a price adjustment allowable under a construction contract by other than a change order or contract modification.

(b) Each county shall prepare a quarterly report listing every change order, contract modification, or other contract price adjustment which causes the county's expenditure for a county construction project assisted by the State to increase by either of the following:

(1) A dollar amount equaling at least five per cent of the original construction contract amount for the project; or

(2) $50,000.

A county shall submit the quarterly report to the state director of finance within thirty days after the end of every fiscal quarter. The report for a quarter shall cover every change order, contract modification, or other contract price adjustment required to be reported by this section which was certified pursuant to section 103D-326 during the quarter.

If a county has no change order, contract modification, or other contract price adjustment to report for a quarter, the county shall notify the state director of finance of that fact. The notification shall be in writing and deemed the report from that county for the quarter.

(c) A quarterly report shall include the following in addition to the list of change orders, contract modifications, and other contract price adjustments required by subsection (b):

(1) The reason for each listed change order, contract modification, or other contract price adjustment;

(2) For each county construction project assisted by the State which is subject to a listed change order, contract modification, or other contract price adjustment:

(A) The original construction contract amount;

(B) The amount appropriated for construction of the project;

(C) The amount of the appropriation for construction allocated to contingencies; and

(D) The amount of state or federal funds appropriated for construction of the project; and

(3) The total number and total dollar amount of the change orders, contract modifications, and other contract price adjustments listed for the quarter.

(d) The state director of finance shall transmit copies of each quarterly report from a county to the president of senate, speaker of the house of representatives, and chair of the council of the county. The report shall be public information."

SECTION 3. The July 1, 2001 to September 30, 2001, fiscal quarter shall be the first quarter for which the quarterly reports required under section 2 of this Act shall be submitted by the counties.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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