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HCR 59

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

Hawaii requests a feasibility study on capping state construction management costs at 10% of total project expenses to reduce public infrastructure spending.

Report and Resolution Adopted. Transmitted to House.
#constructioncosts #departmentofaccountingandgeneralservices #management #study
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Bill Summary · HCR 59

Legislative bill overview

HCR 59 is a Hawaii legislative resolution that directs the Department of Accounting and General Services to study whether the state can cap project and construction management fees at 10 percent of total project costs. The resolution has been adopted and is now tasking the state agency with researching the feasibility of implementing this cost control measure across all state construction projects.

Why is this important

State construction projects involve significant taxpayer funding, and management fees can substantially increase overall project costs. A 10 percent cap could potentially reduce expenses on public works, but the feasibility study will determine whether such a limit is realistic given market conditions, project complexity, and competitive bidding requirements. The outcome may inform future policy decisions affecting how Hawaii manages public infrastructure spending.

Potential points of contention

  • Market competitiveness: Capping fees at 10 percent may deter qualified project managers from bidding on state work, potentially reducing competition and limiting access to experienced firms
  • Project complexity variation: Different projects have vastly different management needs; a flat 10 percent cap may be too restrictive for complex projects while being generous for simpler ones
  • Quality and accountability concerns: Lower fees might incentivize cost-cutting in project oversight, potentially leading to construction delays, cost overruns, or quality issues that ultimately harm taxpayers

Compiled from official sources — confirm details with the bill’s official record.

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