The State shall insert clauses providing for value engineering incentives in all public works contracts for amounts in excess of $250,000. The clauses shall provide:

(1) That cost reduction proposals submitted by contractors:

Terms Used In Hawaii Revised Statutes 103D-411

  • Change order: means a written order signed by the procurement officer, directing the contractor to make changes which the changes clause of the contract authorizes the procurement officer to order without the consent of the contractor. See Hawaii Revised Statutes 103D-104
  • Contract: means all types of agreements, regardless of what they may be called, for the procurement or disposal of goods or services, or for construction. See Hawaii Revised Statutes 103D-104
  • Contract: A legal written agreement that becomes binding when signed.
  • Contractor: means any person having a contract with a governmental body. See Hawaii Revised Statutes 103D-104
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
(A) Must require, in order to be applied to the contract, a change order thereto; and
(B) Must result in savings to the State or county, as the case may be, by providing less costly items than those specified in the contract without impairing any of their essential functions and characteristics such as service life, reliability, substitutability, economy of operation, ease of maintenance, and necessary standardized features; and
(2) That accepted cost reduction proposals shall result in an equitable adjustment of the contract price so that the contractor will share a portion of the realized cost reduction.