The bill aims to enhance prompt payment practices for public works projects in Washington State by amending existing laws and introducing new requirements. It mandates that state or municipal entities must make payments on public works projects within 30 days of receiving a properly completed invoice. The bill specifies that contract documents must include detailed instructions for invoice completion, payment cutoff dates, due dates, review time frames, and payment timelines. Additionally, it establishes that if payments are late, public agencies must provide a payment recovery schedule that includes interest, unless a good faith dispute has been raised. The bill also stipulates that contractors must pay subcontractors within 10 days of receiving payment from the public agency.

Furthermore, the bill introduces provisions for change orders related to additional work on public projects, requiring timely issuance of change orders and the accrual of interest on unpaid amounts. It also clarifies the conditions under which payments can be withheld and establishes penalties for wrongful withholding of funds, including interest accrual and the right to recover costs in civil actions. The bill repeals RCW 39.04.360, which previously addressed payment of undisputed claims and civil actions for violations, streamlining the legal framework surrounding payment practices in public works contracts.

Statutes affected:
Original Bill: 39.04.250, 39.76.011
Substitute Bill: 39.04.250, 39.76.011