Bill Text: HI HB2541 | 2016 | Regular Session | Introduced
Bill Title: Procurement; Competitive Sealed Bidding; Public Works Construction Project; Joint Contractor; Subcontractor
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-02-01 - Referred to WAL, JUD, FIN, referral sheet 5 [HB2541 Detail]
Download: Hawaii-2016-HB2541-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2541 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Hawaii public procurement code requires bid proposals to include the name and scope of work of subcontractors or joint contractors that will be used on a public works project. Time constraints between the time a bidder receives all subcontractor bids and the bid submission deadline as well as the complexity of licensing requirements can cause inadvertent failure to list a required subcontractor or listing of an improperly licensed subcontractor in a bid, resulting in a bid challenge. The execution and delivery of public works projects are often delayed due to bidders challenging technical mistakes in the lowest bidder's proposal. Many recent bid challenges have been based on the failure to list a required subcontractor or licensing scope of work issues. As a result of bid challenges, projects are delayed, funding lapses, and inflation increases final project costs.
The legislature further finds that the contractors license board recognizes over one hundred different specialty contractor licenses that a prime bidder must sort through to determine the appropriate subcontractor specialty to be listed on a bid. The department of accounting and general services has estimated that since 2005, the State has paid an extra $11,000,000 for public works projects due to issues associated with the subcontractor listing requirement.
The legislature additionally finds that in comparison, the federal government does not require the listing of subcontractors on any bid proposal; and the 2000 American Bar Association's Model Procurement Code, the model for Hawaii's procurement code, does not include a subcontractor listing requirement. Twenty states and the federal government do not even require a general contractor's license to bid on or perform construction work. While subcontractor listing proponents cite legislative intent and the deterrent of bid shopping and bid peddling in support of the listing requirement, it is evident from the number of awards to non-low bidders and increased costs of construction due to the subcontractor listing discrepancies that the listing requirement is being used beyond its legislative intent. Providing prime contractors with additional time to submit a subcontractor list would ensure that subcontractors are listed properly and are licensed and qualified in the scope and nature of the work on the bid submittal.
The purpose of this Act is to minimize bid challenges, costs, and delays of projects by providing a bidder of a public works construction project with two working days after the closing of a bid to provide the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor in performance of the contract and the nature and scope of the work to be performed by each joint contractor or subcontractor.
SECTION 2. Section 103D-302, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) An invitation for bids shall be
issued, and shall include a purchase description and all contractual terms and
conditions applicable to the procurement. If the invitation for bids is for
construction, it shall specify that all bids include the name of each person or
firm to be engaged by the bidder as a joint contractor or subcontractor in the
performance of the contract and the nature and scope of the work to be
performed by each[.]; provided that the bidder shall have two
working days after the closing of bids to provide the name of each person or
firm to be engaged by the bidder as a joint contractor or subcontractor in the
performance of the contract and the nature and scope of the work to be
performed by each; provided further that the bids shall be opened pursuant to
subsection (d) only after the close of the two-day period. Construction
bids that do not comply with [this requirement] these requirements
may be accepted if acceptance is in the best interest of the State and the
value of the work to be performed by the joint contractor or subcontractor is
equal to or less than one per cent of the total bid amount."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Procurement; Competitive Sealed Bidding; Public Works Construction Project; Joint Contractor; Subcontractor
Description:
Provides a bidder of a public works construction project with two working days after the closing of bids to provide the name of each person or firm to be engaged by the bidder as a joint contractor or subcontractor and the nature and scope of the work to be performed by each joint contractor or subcontractor.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
