HRS §103D-411
Value engineering incentives
Read the official text at capitol.hawaii.gov ↗This section requires the State to put value engineering incentive clauses in large public works contracts. These clauses let contractors suggest cheaper ways to do the work, and if accepted, the contractor shares in the savings.
contractorsstate agencies
The statute, as written — Value engineering clauses
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
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: (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.
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