Report Title:

Construction Resources Research Center; University of Hawaii

Description:

Establishes the construction resources research center within the University of Hawaii's college of engineering. Allocates 1/4 of 1% of all state fund appropriations for capital improvements designated for construction to be used for the center's programs and functions. Appropriates funds.

THE SENATE

S.B. NO.

1527

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to A construction resources research CENTER.

 

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

SECTION 1. The legislature finds that construction engineering is a major part of our State's economy, and construction projects have a multiplier effect on the State's economy. Construction expenditure in Hawaii approximates $3,000,000,000 per year, while the State spends anywhere from $500,000,000 to $1,200,000,000 per year on construction projects.

The legislature further finds that investment in construction is a significant portion of the State's expenditure at a time of economic difficulties. States wish for many expensive construction and infrastructure facilities that are durable and sustainable, and have strong needs for these items, but do little to ensure the success of these needs, taking an important contribution for granted. Frequent cost overruns on construction projects are common. There is also considerable waste in construction through lost resource utilization, material abuse, poor management and procurement, substance abuse, accidents, and safety violations. The estimated waste in managerial, technical, and contractual effort on construction projects range from five per cent to twenty-five per cent, which amounts to more than $150,000,000 wasted per year from a $3,000,000,000 outlay -- money that could be successfully used elsewhere in other social and public programs by both public and private agencies. Furthermore, it is estimated that ten per cent of the Hawaii workforce is employed in the construction sector, with their needs not having been fully met over numerous decades, even though they are a prime engine of economic stimulation.

Construction is a high technology area. Engaging in the construction of complex projects, such as dams, harbors, airports and runways, tunnels, bridges and highways; high-rise buildings for hospitals, hotels, and office space; housing complexes and commercial construction; and coastal construction, offshore structures, and erosion control, requires long design and planning lead times and consumes immense effort on the part of the community.

The State has established a water resources research center to study, monitor, and research drinking water in Hawaii because the supply of water is critical to the State. The legislature finds that construction is also a very critical investment area for all taxpayers, especially due to its singularly large capital outlay and that, accordingly, there is a similar need for the establishment of a construction resources research center.

Money set aside for a construction resources research center to specifically study, monitor, and research construction activities in the State can provide much needed information, useful strategies, and techno-managerial improvements for the construction industry. Tens of billions of dollars have already been spent by the State in construction development through the years, but not a cent has been devoted to learning from that construction or establishing a competitive and scientific research base that can be used for the benefit of those interested in and involved in construction in future years and to help with reducing waste and construction costs in Hawaii.

The dividends from this small investment for study and research will be many times the construction outlay and will have a long lasting effect on the business, construction, and economic environment in Hawaii. The results of research undertaken in a scientific manner be used to benefit the State, public and private agencies, planning agencies, and other interested individuals, such as local general contractors, unions, and engineering consultants engaged in construction activities.

The opportunity to improve construction management in Hawaii is immense because of minimal or non-usage of value engineering plans, constructability reviews, effective project delivery methods, earned value techniques of cost control, resource sustainability, fair-cost estimates, and claims control. Change order management will stand improved, the probability of timely completion of projects will increase, and cost overruns will be controlled. None of this is trivial, since the savings is expected to amount to hundreds of millions of dollars per year.

Suitable planning and resource management for construction work entails elaborate calculation techniques for effective results that include the use of innovative contractual arrangements, modern design and planning, operational analysis, process simulation, 4-D scheduling, design-construction integration, automation, robotics, computerized construction, agile construction, safety management, and resource optimization. The improvement and application of these sophisticated techniques will serve Hawaii through the decades to come and are potentially projected to save Hawaii $3,000,000,000 in current dollars over twenty-one years. These savings could be used for other urgent needs in Hawaii, such as elementary and higher education, transportation projects, prisons, salary increases in collective bargaining, and future projects.

The State has unique conditions and cultural situations, the information and analysis of which cannot be obtained from any research performed on the mainland or elsewhere. The college of engineering of the University of Hawaii has the resources, facilities, skills, talents, visibility, and credibility to organize these studies. Furthermore, a construction resources research center will provide stimulus to the University of Hawaii.

The purpose of this Act is to establish a construction resources research center within the college of engineering of the University of Hawaii.

SECTION 2. Chapter 304, Hawaii Revised Statutes, is amended by adding a new subpart to part II to be appropriately designated and to read as follows:

" . Construction Resources Research Center

§304-A Construction resources research center. (a) There is established a construction resources research center within the college of engineering of the University of Hawaii to study, monitor, research, and disseminate information regarding the nature, business, and technology of construction activities in the State to provide information, useful strategies, and techno-managerial improvements for the construction industry.

(b) The center shall be located in and be a part of the college of engineering at the University of Hawaii at Manoa. The affairs and operations of the center shall be administered by a director appointed by and responsible to the chancellor of the University of Hawaii at Manoa. The director shall be a tenured construction engineering faculty member from the college of engineering who has a terminal degree in the area of construction engineering management and has considerable experience in Hawaii.

(c) The center shall draw on existing personnel within the state government insofar as possible for necessary supplementation. Where bona fide demand for programs and services exceeds the capabilities of the permanent staff as supplemented, additional personnel resources may be acquired on a contract basis without regard to chapter 76. Permanent staff, including post-doctoral associates, other researchers, and administrative assistants, shall be subject to chapter 76 or section 304-13, as may be appropriate.

(d) The center shall receive the full cooperation of all state agencies in the use of staff members, facilities, and other resources necessary to accomplish the purposes of this subpart.

§304-B Functions and programs. (a) The construction resources research center shall:

(1) Perform comprehensive analyses of the construction industry in Hawaii in a scientific manner, organize seminars, and produce reports and deliverables for dissemination to the public and government organizations;

(2) Study labor conditions, productivity issues, capital financing, claims and change orders, procurement strategies, construction management, cost control, schedule control, optimization sciences, cultural influences, and types of investment sectors, with the objective to enhance the knowledge and technology base of construction in Hawaii;

(3) Seek to provide decision making information to government decision makers on appropriate construction costs, comprehensively analyze information of the different areas of construction spending with relation to the state economy for future planning of construction outlays, and implement research findings through the dissemination of reports to agencies and contractors;

(4) Focus on construction items pertaining to Hawaii, including tourism, education, housing, mass-transit, priority projects, and innovative projects;

(5) Coordinate, arrange for, or conduct instructional programs including classes, courses, workshops, seminars, and research studies or projects;

(6) Coordinate, arrange for, or provide technical assistance to appropriate organizations to improve or implement construction education programs within those organizations;

(7) Prepare and disseminate educational information and publications on various subjects of concern and interest to engineers, contractors, and their organizations; and

(8) Serve as the clearinghouse for construction-related instructional materials and information.

§304-C Construction resources special fund. (a) There is created a construction resources special fund, into which shall be transferred one-fourth of one per cent of all state fund appropriations for capital improvements designated for the construction cost element; provided that this transfer shall apply only to capital improvement appropriations that are designated for the construction or renovation of state buildings.

(b) Moneys from the special fund shall be expended from the fund by the director of the center, with the approval of the chancellor or vice chancellor, in carrying out the purposes of the center, including:

(1) Support of the functions and programs of the construction resources research center as provided in section 304-B; and

(2) Such other expenses as may be necessary to defray the cost of operating the center, including compensation of the permanent staff, contractual obligations, rentals, and such other program costs as may be approved by the chancellor or vice chancellor.

(c) The one-fourth of one per cent amount, which is included in all capital improvement appropriations, shall be calculated at the time the appropriation bills are signed into law. The moneys shall be transferred into the construction resources special fund upon availability of moneys from the appropriations. Each agency receiving capital improvement appropriations shall calculate the one-fourth of one per cent amount and transfer the moneys into the special fund.

(d) The director of the construction resources research center shall decide on the specific functions and purposes to be funded by the special fund; provided that expenditures from the construction resources special fund shall be made by the comptroller.

(e) The comptroller shall:

(1) Provide each agency receiving capital improvement appropriations with information regarding items that shall be included and excluded from the one-fourth of one per cent amount;

(2) Ensure that each agency calculates its one-fourth of one per cent amount correctly; and

(3) Ensure that each agency transfers the correct amount to the construction resources special fund in a timely manner.

(f) The comptroller and the director of the construction resources research center shall track amounts due from each agency under the one-fourth of one per cent requirement as provided in this section."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2003-2004, and the same sum, or so much thereof as may be necessary for fiscal year 2004-2005, for the planning, design, and construction of a construction resources research center within the college of engineering of the University of Hawaii.

SECTION 4. The sums appropriated shall be expended by the University of Hawaii for the purposes of this Act.

SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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