Section 3-132-4 - Conditions for a value engineering change proposal(a) A value engineering change proposal to a contract shall: (1) Result in an estimated net savings to the State in the project cost of at least four thousand dollars by providing less costly items than or using different construction methods from those specified in the contract without impairing any essential functions and characteristics as service life, reliability, substitutability, economy of operation, ease of maintenance, and necessary standardized features of the completed work;(2) Require, in order to be applied to the contract, a change order to the contract; and(3) Not adversely impact on the performance schedule or the contract completion date.(b) As a minimum, the following information shall be submitted by the contractor with each value engineering change proposal: (1) A description of the difference between the existing contract requirements and the value engineering change proposal and the comparative advantages and disadvantages of each including durability, service life, reliability, substitutability, economy of operation, ease of maintenance, desired appearance, design, safety standards, impacts due to construction, and other essential or desirable functions and characteristics as appropriate;(2) An itemization of the requirements of the contract which must be changed if the value engineering change proposal is adopted and a recommendation as to how to make each change;(3) An itemized estimate of the reduction in performance costs that will result from adoption of the value engineering change proposal or parts thereof taking into account the costs of implementation by the contractor, including any amounts attributable to subcontractors, and the basis for the estimate;(4) A prediction of any effects and impacts the value engineering change proposal would have on: other costs to the State as the costs of State-furnished property, related items, and maintenance and operation over the anticipated life of the material, equipment, or facilities as appropriate; the construction schedule, sequence and time; and bid item totals used for evaluation and payment purposes;(5) A statement of the time by which a change order adopting the value engineering change proposal must be issued so as to obtain the maximum cost reduction during the remainder of the contract, noting any effect on the contract time; and(6) If previously submitted, the date(s) of any previous submission(s), the contract number(s) of those contract(s) for which it was submitted and the previous action(s) by the State, if known;(c) When, in the judgment of the procurement officer, a value engineering change proposal alters the design prepared by a registered professional architect or engineer, the contractor shall ensure the changes to be prepared are by or under the supervision of a registered professional architect or engineer, and stamped and so certified.(d) A value engineering change proposal will be processed expeditiously and in the same manner as prescribed for any other proposal which would likewise necessitate issuance of a contract change order. Unless and until a change order applies a value engineering proposal to a contract, the contractor shall remain obligated to perform in accordance with the terms of the contract and the State shall not be liable for delays incurred by the contractor resulting from the time required for the State's determination of the acceptability of the value engineering change proposal. The determination of the procurement officer as to the acceptance of any value engineering change proposal under a contract shall be final.
(e) The procurement officer may accept in whole or in part any value engineering change proposal submitted pursuant to this chapter by issuing a change order to the contract. Prior to issuance of the change order, the contractor shall submit complete final contract documents similar to those of the original contract showing the accepted changes and the new design and features as well as the following: (2) The design criteria used; and(3) A detailed breakdown of costs and expenses to construct or implement such revisions. The change order will identify the final value engineering change proposal on which it is based.
(f) When a value engineering change proposal submitted pursuant to this chapter is accepted under a contract, an equitable adjustment in the contract price and in any other affected provisions of the contract shall be made in accordance with this chapter and the "change order" clause of the contract. The equitable adjustment shall first be established by determining the effect on the contractor's cost of implementing the change, including any amount attributable to subcontractors and to the State's charges to the contractor for architectural, engineering, or other consultant services and the staff time required to examine and review the proposal. The contract price shall then be reduced by fifty per cent of the net estimated decrease in the cost of performance.(g) The contractor may restrict the State's right to use the data or information or both on any sheet of a value engineering change proposal or of the supporting data, submitted pursuant to this section, if it is stated on that sheet as follows: "This data or information or both shall not be disclosed outside the ["State" or "Name of County"], or be duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate this value engineering change proposal.
This restriction does not limit the ["State" or "Name of County"]'s right to use this data or information or both if obtained from another source, or is otherwise available, without limitations. If this proposal is accepted by the ["State" or "Name of County"] by issuance of a change order to the contract after the use of this data or information or both in such an evaluation, the ["State" or "Name of County"] shall have the right to duplicate, use and disclose any data or information or both pertinent to the proposal as accepted, in any manner and for any purpose whatsoever, and have others so do".
(h) In the event of acceptance of a value engineering proposal, the State shall have all rights to use, duplicate, or disclose in whole or in part, in any manner and for any purpose whatsoever, and to have or permit others to do so, any data or information or both reasonably necessary to fully utilize such proposal.(i) Notwithstanding the provisions of this chapter, for any construction contract, the contractor shall not be precluded from making substitution requests in accordance with applicable rules and policies of the State. The procurement officer shall be the sole judge of whether a proposal is a value engineering change proposal or a substitution request.[Eff NOV 17 1997] (Auth: HRS §§ 103-49, 103D-202) (Imp: HRS § 103-49)