Posts Tagged ‘HB 3055’

House Bill in Washington Alters Bond Requirements for Public Contracts

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.

Posted in:     State & Federal Contracting, Washington  /  Tags: , , , , ,   /   Leave a comment