RELATING TO CONSTRUCTION.

HB2553

HOUSE OF REPRESENTATIVES

H.B. NO.

2553

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to construction
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The legislature finds that, although the Hawaii
state building codes allow for the use of alternative materials, designs, and
methods of construction, current practice by state and county building
officials suggests that these code provisions are being narrowly interpreted to
limit or prevent the use of alternative systems.
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This restricts competition, increases housing costs,
and slows the availability of critical housing projects.

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The legislature further finds that some
affordable and efficient construction systems offered by vendors operating in
the State meet building code requirements but are not considered or approved for
construction despite their ability to provide the same or better safety and
durability aspects at lower costs.
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This
problem is particularly acute in the rebuilding efforts in Lahaina and in other
communities with urgent housing needs.

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The legislature also finds that Hawaii's
recovery and resilience depend on a building code and planning review process
that can effectively evaluate newer, safer, more efficient, and less costly
technologies.
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Reliance on a narrow set
of preferred construction systems or suppliers slows innovation, lengthens
timelines, and contributes to higher construction costs.

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Accordingly, the purpose of this Act
is to provide greater flexibility for the use of alternative materials,
designs, or methods of construction within the specifications of the Hawaii
state building codes.

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SECTION 2.
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Chapter 107, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

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"
�107-
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Hawaii state building codes; alternative
materials, designs, and methods.
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(a)
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In
adopting the Hawaii state building codes, the council shall
include
provisions
requiring building officials, when evaluating proposed alternative materials,
designs, or methods of construction for detached one- and two-family dwellings
and townhouses, to approve alternatives that:

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(1)
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Provide equal
or greater fire resistance and life safety;

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(2)
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Meet or exceed
the applicable code's requirements for structural and material quality and
durability; or

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(3)
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Are more
economically feasible or capable of being constructed in a shorter time than
prescriptive methods, while maintaining compliance with the intent of the applicable
code.

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(b)
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The approval of the proposed alternative
materials, designs, or methods of construction may require a
certification from an individual having
an appropriate license from the State or an international body.
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An international certification based on
metric measurements shall not be a basis for denying any
proposed
alternative material, design, or method of construction.
"

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SECTION
3
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Section
103D-302, Hawaii Revised Statutes, is amended to read as follows:

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�103D-302
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Competitive sealed
bidding.
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(a)
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Contracts shall be awarded by competitive
sealed bidding except as otherwise provided in section 103D-301.
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Awards of contracts by competitive sealed
bidding may be made after single or multi-step bidding.
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Competitive sealed bidding does not include
negotiations with bidders after the receipt and opening of bids.
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Award is based on the criteria set forth in
the invitation for bids.

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(b)
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An invitation for bids shall be issued, and shall include a purchase
description and all contractual terms and conditions applicable to the
procurement.
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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.
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Construction bids that do not comply with this requirement 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.

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(c)
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Adequate public notice of the invitation for bids shall be given a
reasonable time before the date set forth in the invitation for the opening of
bids.
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The policy board shall adopt rules
which specify:

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(1)
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The form that the
notice is to take;

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(2)
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What constitutes a
reasonable interim between publication and bid opening; and

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(3)
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How notice may be
published, including publication in a newspaper of general circulation, notice
by mail to all persons on any applicable bidders mailing list, publication by
any public or private telecommunication information network, or any other method
of publication it deems to be effective.

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(d)
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Bids shall be opened publicly in the presence of one or more witnesses,
at the time and place designated in the invitation for bids.
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The amount of each bid and other relevant
information specified by rule, together with the name of each bidder shall be
recorded.
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The record and each bid shall
be open to public inspection.

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(e)
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Bids shall be unconditionally accepted without alteration or correction,
except as authorized in this chapter or by rules adopted by the policy board.

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(f)
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Bids shall be evaluated based on the requirements set forth in the
invitation for bids.
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These requirements
may include criteria to determine acceptability such as inspection, testing,
quality, workmanship, delivery, and suitability for a particular purpose.
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Those criteria that will affect the bid price
and be considered in evaluation for award shall be as objectively measurable as
possible, such as discounts, transportation costs, total or life cycle costs,
and the bidder's past performance, if available.
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The invitation for bids shall set forth the
evaluation criteria to be used.
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No
criteria may be used in bid evaluation that are not set forth in the invitation
for bids.
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Bids shall not be
disqualified or deemed non-responsive solely because they utilize metric or
standard measurement systems.

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(g)
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Correction or withdrawal of inadvertently erroneous bids before or after
award, or cancellation of invitations for bids, awards, or contracts based on
such bid mistakes, shall be permitted in accordance with rules adopted by the
policy board.
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After bid opening no
changes in bid prices or other provisions of bids prejudicial to the interest
of the public or to fair competition shall be permitted.
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Except as otherwise provided by rule, all
decisions to permit the correction or withdrawal of bids, or to cancel awards
or contracts based on bid mistakes, shall be supported by a written
determination made by the chief procurement officer or head of a purchasing
agency.

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(h)
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The contract shall be awarded with reasonable promptness by written
notice to the lowest responsible and responsive bidder whose bid meets the
requirements and criteria set forth in the invitation for bids.
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In the event all bids exceed available funds
as certified by the appropriate fiscal officer, the head of the purchasing
agency responsible for the procurement in question is authorized in situations
where time or economic considerations preclude resolicitation of work of a
reduced scope to negotiate an adjustment of the bid price, including changes in
the bid requirements, with the low responsible and responsive bidder, in order
to bring the bid within the amount of available funds.

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(i)
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In cases of awards for a construction project
made under this section, non-selected offerors may submit to the procurement
officer a written request for debriefing within three working days after the
posting of the award of the contract.
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Thereafter,
the procurement officer shall provide the non-selected offeror a prompt
debriefing, including a comprehensive written technical and cost evaluation
report, that articulates specific findings demonstrating that the awarded bid
was either:

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(1)
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Technically
superior, as evidenced by the superior quality of materials, enhanced hurricane
and fire resistance, or fitness for purpose and site-specific context, in
conformance with International Code Council standards, Construction
Specifications Institute guidelines, and standards under section 107- ;
or

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(2)
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Lower in cost
while meeting or exceeding minimum safety criteria under section 107-
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and as defined by the Construction
Specifications Institute.

Any protest by the non-selected offeror pursuant
to section 103D-701 shall be filed in writing with the procurement officer
within five working days after the date on which the debriefing is received.

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[
(i)
]
(j)
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When it is not practicable to initially
prepare a purchase description to support an award based on price, an
invitation for bids, which requests the submission of unpriced offers to be
followed by an invitation for bids limited to those bidders whose offers have
been qualified under the criteria set forth in the first solicitation, may be
used.
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If a multi-step sealed bidding
process is used, the notice and the invitation for bids shall describe each
step to be used in soliciting, evaluating, and selecting unpriced offers."

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SECTION
4
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Section
103D-701, Hawaii Revised Statutes, is amended by amending subsection (c) to
read as follows:

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"(c)
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The chief procurement officer or a designee
shall resolve any protest as expeditiously as possible.
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If the protest is not resolved by mutual
agreement, the chief procurement officer or a designee shall issue a written
decision to uphold or deny the protest.
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The decision shall:

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(1)
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State the reasons
for the action taken; and

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(2)
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Inform the
protestor of the protestor's right to an administrative proceeding as provided
in this part, if applicable.

If the protest of a construction contract or airport
contract that is awarded pursuant to section 103D-302 or 103D-303 is not
resolved by mutual agreement, the chief procurement officer or a designee shall
issue a written decision to uphold or deny the protest within seventy-five
calendar days of receipt of the protest; provided that the chief procurement
officer or a designee may grant an extension based on written justification of
the extenuating circumstances; provided further that the extension shall not
exceed forty-five calendar days.

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If a debriefing under section
103D‑302(i) is requested by a non-selected offeror and:

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(1)
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The debriefing
does not include a report in compliance with that subsection, and

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(2)
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The protest is not
resolved by mutual agreement,

the protester shall have the right to require a
mandatory re‑assessment of all bids wherein the state representative and
senator of the district in which the project is located shall each cast a
binding vote in the re-award process.
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SECTION
5.
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This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

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SECTION 6.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION 7.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

SBCC;
Alternative Methods of Construction; Procurement; Protests

Description:

Requires
the State Building Code Council to provide greater flexibility for the use of
alternative materials, designs, or methods of construction within the
specifications of the Hawaii state building codes.
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Authorizes procurement debriefing and award
protests for awards that do not account for the alternatives.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.