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 not made according to these requirements, they will be considered late, and the public agency must provide a payment recovery schedule that includes interest. The bill also stipulates that contractors must pay subcontractors within 10 days of receiving payment from the public agency.

Furthermore, the bill amends RCW 39.76.011 to clarify the conditions under which payments are considered timely and introduces provisions for interest accrual on late payments. It emphasizes that payments for undisputed work must not be withheld and outlines the process for notifying contractors of any payment disputes. The bill also repeals RCW 39.04.360, which previously addressed payment of undisputed claims and civil actions for violations, thereby streamlining the legal framework surrounding payment practices in public works projects. Overall, the legislation seeks to ensure timely payments and protect the interests of contractors and subcontractors involved in public works.

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