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.

2025 Regular Session Introduced by Kyle Yamashita

HR 55 directs a study to assess capping project management costs at 10% for state construction projects, aiming to enhance efficiency and save taxpayer money.

Reported from FIN (Stand. Com. Rep. No. 1795), recommending adoption.

#constructioncosts #departmentofaccountingandgeneralservices #management #study

Bill Overview

Bill Number: HR 55
Title: 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.
Status: Reported from FIN (Stand. Com. Rep. No. 1795), recommending adoption.
Introduced: January 03, 2025
Classification: Resolution
Subject: Construction Costs, Department of Accounting and General Services, Management, Study

Purpose and Intent

The primary purpose of HR 55 is to direct the Department of Accounting and General Services (DAGS) to conduct a study assessing the feasibility of capping project and construction management costs at 10% of the total cost for state construction projects. This initiative aims to enhance cost efficiency and accountability in state-funded construction projects.

Key Provisions

Feasibility Study: The bill mandates DAGS to evaluate whether limiting management costs to 10% is practical and beneficial for state construction projects.

Cost Management: The study will focus on identifying potential savings and efficiencies that could be achieved by implementing such a cap.

Reporting Requirements: DAGS will be required to report its findings and recommendations to the legislature, providing insights into the implications of the proposed cost limitation.

Affected Parties

State Agencies: The resolution primarily impacts state agencies involved in construction projects, as they will need to adapt to any new cost management guidelines established as a result of the study.

Construction Management Firms: Firms that provide project and construction management services may be affected by the proposed cost cap, potentially altering their pricing structures and business models.

Taxpayers: Ultimately, the resolution aims to benefit taxpayers by ensuring that state construction projects are managed more efficiently, potentially leading to lower overall costs.

Legislative Timeline

January 03, 2025: Bill introduced and referred to the House Committee on House Administration.

March 06, 2025: Offered for consideration.

March 14, 2025: Referred to the Finance Committee (FIN).

March 28, 2025: Scheduled for a hearing by the FIN committee.

March 31, 2025: FIN committee recommended that the measure be passed, unamended, with a unanimous vote (14 Ayes, 0 Noes, 2 Excused).

April 03, 2025: Resolution adopted in final form with no votes against it.

Conclusion

HR 55 represents a proactive step towards improving financial oversight in state construction projects by exploring the feasibility of limiting management costs. The findings from the DAGS study could lead to significant changes in how state construction projects are managed, potentially resulting in cost savings for taxpayers and increased efficiency in project execution.

Bill