Representatives Hinkle and Kretz introduced House Bill 3055 yesterday, whose digest explains will “modif[y] provisions regarding contractors’ bonds for public contracts.”
If passed, the bill would amend RCW 39.04.155 and 39.08.010, and make the following substantive changes:
- Contracts $35,000 or less would not require a bond
- On contracts between $35,000 and $100,000, in lieu of a bond, the county or public entity may retain 25% of the contract amount for a period of 30 days after final acceptance of the work
Currently, bonds are required on every project, with the state having the option to retain 50% of contract funds in lieu of a bond when the contract is less than $35,000.00.
The suggested amendment here seems to make practical sense.
Requiring a bond for tiny public contracts is a bit overkill, and the 50% retainage figure is near unworkable. The amended figures and bond requirements feels more aligned with the practical needs of smaller public projects.
Stay tuned here for updates on this bill, or you can follow it online or subscribe to its RSS feed. Download the original bill here.
This article was originally posted on Wolfe Law Group’s topic-specific Northwest Construction Law Blog.
AllBusiness.com, an online media and e-commerce company that operates one of the premier business sites on the Web, is a great tool for contractors. They self-proclaim to help business professionals save time and money by addressing real-world business questions and presenting practical solutions.
As one of its resources, the website has re-published an article written by Lloyd N. Shields, one of New Orleans’ premiere construction attorneys. The article, titled Mechanics Liens and Construction Bonds under Louisiana Law, offers a good discussion of Louisiana’s sometimes peculiar lien laws.
When doing work in a particular state – like Louisiana – it never hurts to spend time reviewing the overall lien laws in your area. Understanding and following lien laws is important for your company to avoid bad collection situations, and is increasingly important in this penny-pinching economy.
It would be a prudent start to the new year to spend some time getting familiar with the lien laws in Louisiana. You can read some basic information about Louisiana lien laws at the Construction Lien Blog here. The allbusiness.com article is also a good resource.
Also, be sure to check out the Construction Industry Center at AllBusiness.Com.