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The Honorable Dr: Holeka Goro Inaba, Council Chair <br />Hawai'i County Council <br />February 26, 2026 <br />Page 2 <br />access to structural engineers, coating inspectors, and SCADA/Controls experts. We only <br />pay for these highly compensated specialists when they are needed. <br />s. Protecting Funding: Managing State Revolving Fund (SRF) compliance, certified payrolls, <br />and audit readiness is a full-time job. The CM firm brings specialized administrative <br />experience to avoid missteps that could jeopardize our funding. <br />RETURN ON INVESTMENT <br />Industry standards for CM typically range from 3% to 5% of the total construction cost. The <br />proposed CM contract represents approximately 2.1% of the total $337M project value. <br />This contract functions as a critical insurance policy. By proactively preventing defective work, <br />defending against inflated change orders, and keeping the project on schedule, the CM firm is <br />expected to save the County significantly more than the cost of their contract. <br />RECOMMENDATION <br />DEM recommends the approval of this CM contract. Attempting to manage a project of this scale <br />with overextended in-house staff presents an unacceptable level of financial and operational risk <br />to the taxpayers of Hawai'i County. <br />Sincerely, <br />Daniel Girvan, P.E. <br />Director, Environmental Management <br />