HAR §3-56-5. General Provisions

(a) The processing of a VECP shall be similar to that for any proposed contract change order and shall be regarded only after the public works contract is awarded. The inclusion of the VEIC in the bidding documents shall not be construed to have an effect on the bids or the selection of a contractor. (b) Nothing herein shall be construed to mean that the State must accept or approve any or all VECP submitted under the terms of the VEIC. The contracting officer's interpretation and findings relative to the impairment of the functions or characteristics of the item or items covered by the VECP shall be final. (c) Adjustment in contract prices and allowances for implementation costs under the VEIC and these rules shall only be considered if and when the VECP is approved by the contracting officer. The receipt of the VECP by the State or a verbal acceptance of a VECP by any employee of the State shall not obligate the State to accept the VECP. (d) The contracting officer may impose, as a condition of acceptance of any VECP, a requirement that the contractor warrant the statements, claims and other information contained in the VECP regarding essential functions and characteristics such as service life, reliability, economy of operation, ease of maintenance, and desired appearance, such warranty to be for an appropriate period to be determined by the contracting officer. The contractor's responsibility under any such warranty shall be in addition to the liability imposed by the "guarantee of work" requirement as included in the contract. (e) The exhibit entitled "Examples of Documents that may be used to Implement a VECP," dated Nov. 1980, at the end of this section is made a part of this section for purposes of information and clarification only. [Eff. MAR 30 1981] (Auth: HRS §103-49) (Imp: HRS §103-49) 56-6 The Rules Providing Value Engineering Incentives in Public Works Contracts on the Summary Page dated were adopted on MAR 19 1981 following a public hearing held on February 13, 1981 after public notice was given in the Honolulu Star-Bulletin and Honolulu Advertiser on January 22, 1981. 3. These rules shall take effect ten days after filing with the Office of the Lieutenant Governor. APPROVED: HIDEO MURAKAMI COMPTROLLER APPROVED: GEORGE R. ARIYOSHI GOVERNOR STATE OF HAWAII Dated: March 19, 1981 APPROVED TO AS FORM: Deputy Attorney General REC'D. BY 1981 MAR 19 PM 4 25 U. GOVERNOR'S OFFICE Filed Examples of Documents that may be Implement a VECP, Nov., 1980 # VALUE ENGINEERING CHANGE PROPOSAL # (Contractor Summary Submittal) | From: | Gregg & Co. | Date: Sept. 18, 1967 | | --- | --- | --- | | To: | Public Works Engineer | VECP No. 1 | | Project: | Adriana Housing 02-20-0025 | Contract No. 2756 | | Location: | Adriana | | SUMMARY OF CHANGE (Description - Compare advantages and disadvantages) Before: (sketch, when applicable)     Original design called for a 9" s.f. 4" concrete slab over 9" of base enclosed by a 7" cedar fence. Proposed design eliminates base, reduces overall area, and changes feeding material to exterior grade painted plywood. ESTIMATED COST SUMMARY (Costs shall be estimated in accordance with the change provisions contained in the General Clauses of the contract. Attach Cost Estimating Form, for detailed estimate whenever applicable.) | | Unit Pr. | Quan. | Total | | --- | --- | --- | --- | | A. Original | 297.00 | 50 | 14,350.00 | | B. Proposed | 173.00 | 50 | 8,450.00 | | C. Gross Savings (A-B) | | | 5,700.00 | | D. Contractor's Implementing Cost | | | 700.00 | | E. Total Estimated Decrease (C-D) | | | 5,000.00 | | F. State's Implementing Cost | | 100.00 | | | G. Difference (E-F) | | 4,900.00 | | | H. 1/2 Difference (E-F/2) | | | 2,450.00 | | I. Reduction in Contract Price (E-H) | | | 2,550.00 | DATE BY WHICH A CHANGE ORDER MUST BE ISSUED SO AS TO OBTAIN MAXIMUM COST REDUCTION . . . . . Sept. 26, 1967 | Rec'd by State 9/18/67 | State Representative: (s) | Contractor's Representative: (s) | | --- | --- | --- | Sheet 2 of 2 Implement a VECP # VALUE ENGINEERING CHANGE PROPOSAL # (Contractor Required Information) | From: | Gregg & Co. | Date: Sept. 18, 1967 | | --- | --- | --- | | To: | Public Works Engineer | VECP No. 1 | | Project: | Waianae Housing 02-23-0725 | Contract No. 2256 | | Location: | Waianae | | INFORMATION REQUIRED OF THE CONTRACTOR (If answer to any of the following questions is "Yes", explain in Remarks below.) | | YES | NO | | --- | --- | --- | | 1. Does this proposed change affect the time of completion of the contract as stated in the General Clauses? | | x | | 2. Has the Contractor submitted this proposed change previously to this office or any other Government agency? | x | | | 3. Does this change affect other costs to the Government, such as Government-furnished property or costs of contract-related items? | | x | | 4. Does this proposed change increase the maintenance or operation costs of original or proposed items? | | x | | 5. Is a subcontractor involved in this proposed change to the original contract? | | x | | 6. Does the Contractor intend to restrict the Government's right to use any data described in this proposed change? | | x | | 7. Does this proposed change involve use of proprietary materials? | | x | CHANGES AND/OR REVISIONS TO DRAWINGS AND SPECIFICATIONS (Attach applicable contract drawings and specifications, including Contractor's or shop drawings or literature with all changes marked on the drawings and specifications.) REMARKS: By: To Federal Government - Bureau's Project 18   | Rec'd by Gov't. 9/18/67 | Gov't Representative: (s) | Contractor's Representative: (s) | | --- | --- | --- | | Sheet 1 of 2 | | | | STATE OF HAWAII DEPARTMENT OF ACCOUNTING & GENERAL SERVICES DIVISION OF PUBLIC WORKS. CHANGE ORDER | ORDER NO. 11 | DATE 9/22/67 | | --- | --- | --- | | | PROJECT NO. 02-20-0823 | CONTRACT NO. 2256 | | PROJECT TITLE Balance Housing | CONTRACTOR Green & Co. | | # A. CHANGES The following changes are to be performed in accordance with all contract stipulations and covenants (Specifications, drawings, special provisions, etc.): Change covered by YCCP 11 attached Time extension, if any, will be granted the Contractor in accordance with Section 8.8(b) of the General Requirements and Covenants. Please fill in Part B below and return all copies of this pending change order. DFW CONSTRUCTION ENGINEER # B. CONTRACTOR'S QUOTATION The changes included under Part A above will be performed at a contract price (increase) (decrease) of $2,550.00 in accordance with all terms of the contract documents. Six copies of our cost breakdown are attached herewith. We are aware that this change order, in order to be valid, must be approved by the State P.W.E. in the designated space below and that no work is to be performed until an approved change order has been given us. In case of rejection of this change order by the State P.W.E., we will continue all work in accordance with the existing contract terms. NAME DATE 9/21/67 DATE # C. STATEMENT OF FUNDS New Contract Price $120,000.00 New Balance of extras remaining $1,553.02 # D. JUSTIFICATION The changes included under Part A above will be incorporated into the contract for the following reason: ☐ For compliance with the local building code ☐ To accommodate the using agency Remarks: ☐ To correct design and/or construction deficiencies ☐ Other: CCP 11 # E. TIME EXTENSION # F. VALIDATION OF CHANGE ORDER Recommended for approval (s) DFW CONSTRUCTION ENGINEER Approved (s) STATE PUBLIC WORKS ENGINEER DISTRIBUTION: 9/22/67 DATE # G. REJECTION OF CHANGE ORDER Disapproval because of: DFW CONSTRUCTION ENGINEER Disapproved STATE PUBLIC WORKS ENGINEER DATE # DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES # TABLE OF DISPOSITION | DAGS Rules and Regulations Providing Value Engineering Incentives in Public Works Contracts | Administrative Rule Format Number | | --- | --- | | §1 | §3-56-1 | | §2 | §3-56-2 | | §3 | §3-56-3 | | §4 | §3-56-4 | | §5 | §3-56-5 | Rules Repealing Rules Providing Value Engineering Incentives in Public Works Contracts and Adopting Subchapter 1, Chapter 56 of Title 3, Administrative Rules # SUMMARY 1. Rules of the Department of Accounting and General Services entitled "Rules and Regulations Providing Value Engineering Incentives in Public Works Contracts", is repealed. 2. Chapter 56, Subchapter 1, entitled "Rules Providing Value Engineering Incentives in Public Works Contracts" of Title 3, Administrative Rules, is adopted. The Rules Providing Value Engineering Incentives in Public Works Contracts on the Summary Page dated MAR 19 1981 were adopted on following a public hearing held on February 13, 1981 after public notice was given in the Honolulu Star-Bulletin and Honolulu Advertiser on January 22, 1981. 3. These rules shall take effect ten days after filing with the Office of the Lieutenant Governor. APPROVED: HIDEO MURAKAMI COMPTROLLER APPROVED: GEORGE R. ARIYOSHI GOVERNOR STATE OF HAWAII Dated: March 19, 1981 APPROVED TO AS FORM: Deputy Attorney General REC'D. BY 1981 MAR 19 PM 4 25 U. GOVERNOR'S OFFICE Filed