S.B. 247 Summary

• Amends Hawaii Revised Statutes section 103D-501 to restrict change orders that increase contract costs by more than 50% of the original contract price or substantially change the scope of work, requiring them to be treated as new procurements.

• Establishes that change orders not exceeding $50,000 may use documented actual costs with 20% overhead and profit for contractor work and 10% for subcontractor work, with no cap on total work costs.

• Requires change orders exceeding $50,000 but not exceeding 50% of the original contract price to be issued unilaterally by the governmental body within 10 days, with contractors having 30 days to file a notice of intent to claim if they disagree.

• Allows the head of a purchasing agency to approve otherwise prohibited change orders if written justification determines the approval is in the best interest of the State.

• Takes effect July 1, 2023.