The bill amends existing laws regarding retainage on private construction projects in Washington State, specifically RCW 60.30.010 and 60.30.020. It expands the definition of parties involved in retainage by including "suppliers" alongside owners, contractors, and subcontractors. The bill stipulates that these parties may withhold retainage of up to five percent of the contract price for completed work and mandates that they pay interest at a rate of one percent per month on final payments due, starting 30 days after the work is accepted. Additionally, it establishes a process for notifying parties about the completion of work and the subsequent acceptance or notification of remaining work, with specific timelines for interest commencement.
Furthermore, the bill allows subcontractors, suppliers, or contractors to provide a retainage bond instead of withholding retainage, which must be accepted by the contractor or owner. The bond must be from an authorized surety company and guarantees the performance of the contract and payment to laborers and suppliers. The bill also includes provisions for the contractor to withhold the bond premium from the subcontractor or supplier and requires that any bonds accepted in lieu of retained funds must be reciprocated by the contractor for any retained funds from subcontractors or suppliers. The provisions do not apply to single-family residential construction projects with fewer than 12 units.
Statutes affected: Original Bill: 60.30.010, 60.30.020
Substitute Bill: 60.30.010, 60.30.020
Bill as Passed Legislature: 60.30.010, 60.30.020
Session Law: 60.30.010, 60.30.020