Governor signs bill requiring generals to post retainage bond upon request of subs


Effective July 23, 2017, general contractors will be required to bond for a subcontractor’s portion of retainage, upon request of the subcontractor. Gov. Inslee signed the measure (ESHB 1538), which was opposed by AGC.

The pertinent language from the bill:

At any time prior to final formal acceptance of the project, a subcontractor may request the contractor to submit a bond to the public owner for that portion of the contractor's retainage pertaining to the subcontractor in a form acceptable to the public body and from a bonding company meeting standards established by the public body. The contractor may withhold the subcontractor's portion of the bond premium. Within thirty days of receipt of the request, the contractor shall provide and the public body shall accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it, the bond is not commercially available, or the subcontractor refuses to pay the subcontractor's portion of the bond premium and to provide the contractor with a like bond.

For more information, contact AGC Chief Lobbyist Jerry VanderWood, 360.352.5000.