STAND. COM. REP. NO. 1250

 

Honolulu, Hawaii

                  

 

RE:    S.R. No. 125

       S.D. 1

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Madam:

 

     Your Committee on Government Operations, to which was referred S.R. No. 125 entitled:

 

"SENATE RESOLUTION REQUESTING THE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES TO INVENTORY ALL OPEN CONTRACTS SINCE 2010 TO THE PRESENT FOR ALL STATE AGENCIES AND ASSIST THE AGENCIES WITH CLOSING AND RESOLVING ANY DISPUTES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to request the Department of Accounting and General Services to:

 

     (1)  Inventory all open contracts from 2010 to the present for all state agencies;

 

     (2)  Assist agencies with closing and resolving any disputes; and

 

     (3)  Notify the agencies of whether a private contractor will be receiving payment as a result of closing a contract or resolving a dispute.

 

     Your Committee received testimony in support of this measure from the Subcontractors Association of Hawaii, Building Industry Association of Hawaii, and General Contractors Association of Hawaii.

 

     Your Committee finds that the State depends on private contractors to complete many projects involving consulting, development, and personal services.  Change orders and other circumstances may result in a contract being left open longer than anticipated.  Contractors are left at a disadvantage due to their bond limits and cash flow constraints.  It is necessary that such contractual issues be resolved expeditiously to resolve any disputes, receive quality completed projects on time, and maintain positive relationships with contractors.  Making it a priority to close such open contracts is a first step toward those results.

 

     Your Committee has amended this measure by adding language requesting the Department of Accounting and General Services to also identify the reason a contract was open, in an effort to help the parties avoid a similar problem in the future.

 

     As affirmed by the record of votes of the members of your Committee on Government Operations that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 125, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.R. No. 125, S.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Government Operations,

 

 

 

________________________________

DONOVAN M. DELA CRUZ, Chair