§10.4 Checklists

• Jurisdiction: Washington

§10.4 CHECKLISTS

(1) Overview of Washington public works statutes—payment

RCW	Subject/Title	Overview
39.04	Public Works
39.04.240	Attorney Fees	- applies RCW 4.84.250 settlement offer procedure without $$ limit; - serve offer not less than 30 days and more than 120 days from completion of service and filing of complaint
39.04.250	Prompt Pay Act(Contractor)	- interest assessed if contractor fails to pay sub; - allows contractor or Owner to withhold 150% of disputed amount in the event of a good faith dispute; - See 39.76.020(4) requiring notice of dispute
39.04.360	Payment of Undisputed Claims	- requires owner to issue CO within 30 days of completion of added work for full $$ amount of work not in dispute; - if not done, interest at 12% accrues until CO is issued
39.04.900	Chapter 223; Laws of 1992	- rights provided in 1992 law may not be waived; - 1992 law to be liberally construed
39.08	Payment Bond
39.08.010	Bond Required	- payment and performance bonds required on all public projects over $35K
39.08.030	Bond Claims	- allows for claims by private claimants; - time: within 30 days from and after completion of the contract with an acceptance of the work by the affirmative action of the [public body]; - manner: present and file with board, etc., written notice (per statutory form); - form of notice provided; - State claims for taxes are exempt from this process

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39.08	Payment Bond
39.08.065	Bond -Pre Claim Notice	- formerly RCW 39.08.020; - notice required not later than 10 days after the date of first delivery of the materials, etc.; - required by 2nd tier sub (for materials) and 1st tier suppliers furnishing "materials, supplies or provisions" See LRS Electric, 153 Wn.2d 731 (2005)
39.12	Prevailing Wage
39.12.040	Prevailing Wage	- requires "affidavit of wages paid" certified by DL&I before paying retainage; - note: duty starts after final acceptance
39.12.042	Liability to Workers	- Owner liable to workers for knowing failure to comply with 39.12.040
39.12.050	Prevailing Wages/ False Statement on Failure to File/Lien	- penalties on contractor; - no lien on retainage until after finding of non-payment following hearing; - See Thompson v. Peninsula School District, 77 Wn.App. 500 (1995)
39.76	Prompt Pay (Owner)
39.76.011	Prompt Pay Act (Owner)	- replaces 39.76.010 (repealed in 2009); - interest at 1% per month for untimely payments; - defines "timely"; - applies except as provided in 39.76.020; - applies to retainage; see Thompson v. Peninsula School District, 77 Wn.App. 500 (1995)
39.76.020	Exceptions to Prompt Pay Act	- lists 7 exceptions; - most relevant: claims subject to good faith dispute when proper notice given; - note: applies to 39.76.011 even though only 39.76.010 is referenced

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39.76	Prompt Pay (Owner)
39.76.030	Funds for late payment penalties (interest)	- from admin, cost funds; - hopefully, not ever applicable
39.76.040	Prompt Pay/Attorney Fees	- awarded to prevailing party in action to collect interest; - see Thompson case
60.28	Retainage
60.28.011	Retainage; Liens/Claims	- requires public body to reserve contract retainage NTE 5% as trust fund; - replaces 60.28.010 (repealed in 2009); - creates lien for every person "performing labor or furnishing supplies"; - notice of lien claim: "within 45 days of completion of the contract work"; - give notice in the manner

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