Bill > SB5176

This bill implements prompt pay recommendations from the Capital Projects Advisory Review Board by amending existing laws related to payment procedures for public works projects. The bill requires state and municipal entities to make payments on public works projects within 30 days of receiving a properly completed invoice, and mandates that contract documents include specific details like payment cutoff dates, invoice due dates, review time frames, and payment release schedules. It establishes stricter guidelines for how contractors and subcontractors must handle payments, including requirements that contractors pay subcontractors within 10 days of receiving payment themselves. The bill introduces provisions for late payments, stipulating that late payments will accrue one percent interest per month. Additionally, it creates new procedures for handling change orders and additional work, requiring owners, states, or municipalities to issue change orders within 30 days of receiving a request for additional work. The legislation also provides mechanisms for resolving payment disputes, ensures that parties not involved in a dispute receive full and prompt payment, and allows aggrieved parties to bring civil actions for violations with the potential to recover interest and attorneys' fees. These changes aim to improve payment transparency, timeliness, and fairness in public works and construction projects.

Budget and Finance, Government Affairs

https://app.leg.wa.gov/billsummary?BillNumber=5176&Year=2025&Initiative=false