How does a contractor get paid on a public work in Washington State?
On a Washington public work, payment runs through four chapters of the RCW. No payment is made until the prevailing wage intent is approved. The public body keeps 5% as retainage, released after the affidavits and the state's releases. Unpaid parties claim on the contractor's bond within 30 days of acceptance.
The payment cycle on a public work, in order
- Before any sum due on a public works contract is paid, the disbursing officer must require a statement from the contractor and from each subcontractor at every tier (RCW 39.12.040(1)(a)).
- Certified payroll goes to Labor and Industries every 1 month. The statute says at least once per month and fixes no filing day within the month.
- The public body pays within 30 days of a properly completed invoice, or says within 8 working days why it is withholding, and the contractor pays its subcontractors within 10 days of being paid.
- The retainage is a trust fund for the claims of any person arising under the contract and for the state's taxes, increases and penalties under Titles 50, 51 and 82 RCW (RCW 60.28.011(1)(a)). Following final acceptance, the disbursing officer requires an affidavit from the contractor and from each subcontractor at every tier before releasing the funds retained under RCW 60.28.011; where no retainage is withheld, the affidavit is due before final acceptance (RCW 39.12.040(1)(b)).
- On completion of a contract over USD 35,000 the disbursing officer notifies DOR, ESD and L&I, and may pay nothing from the retainage until each certifies that the contractor's taxes, increases and penalties are paid or readily collectible (RCW 60.28.051). The retainage is released 60 days after completion of the contract work.
An unpaid subcontractor or supplier claims on the bond or the retainage. The 30 days run from the completion of the contract with an acceptance of the work by the affirmative action of the public body (RCW 39.08.030(1)(a)).
A contractor or subcontractor found to have underpaid owes the unpaid wages with interest at 1% per month and a civil penalty of the greater of USD 5,000 and 50% of the violation found on the contract, and may not bid on any public works contract until the penalty is paid; a second violation within five years adds a two year bar (RCW 39.12.065(1), (3)).
Every duty the library holds for a Washington public work
In the order the library holds them, chapter by chapter. Each is on its chapter's page in the library too, with how it was read.
| Duty | Window and section | If missed |
|---|---|---|
| Pay every laborer, worker and mechanic on a public work at least the prevailing rate of wage for the trade in the county where the work is done | none setRCW 39.12.010(1)-(3), (6), 39.12.015, 39.12.020, 39.12.021, 39.12.065(1)-(6) | a breach of contractLapsed compliance |
| File a Statement of Intent to Pay Prevailing Wages, approved by the department of labor and industries, before the public body makes any payment on the contract | none setRCW 39.12.040(1)(a), (b), (2)(a), 39.12.050(1), (2), 39.12.070(2) | a breach of contractLapsed compliance |
| On a contract over USD 10,000, post the approved statement of intent and the industrial statistician's address and telephone number where workers can readily see them at the jobsite | none setRCW 39.12.020, 39.12.050(1) | a breach of contractLapsed compliance |
| After final acceptance, file an Affidavit of Wages Paid, certified by the department of labor and industries, before the retainage is released | none setRCW 39.12.040(1)(b), (2)(b), 39.12.050(1) | a breach of contractLapsed compliance |
| File certified payroll records for each public works project with the department of labor and industries at least once a month | 1 monthRCW 39.12.120(2)-(4), 39.12.050(1) | a breach of contractLapsed compliance |
| Keep accurate payroll records for each worker on a public works project for 3 years from the date the awarding agency accepts the project | 36 monthsRCW 39.12.120(1), (4), 39.12.110 | a breach of contractLapsed compliance |
| Have the public body retain no more than 5% of the moneys earned, held at the contractor's option in a fund, an interest-bearing account or escrow | none setRCW 60.28.011(1), (3), (4), (9), (10), 60.28.040(5); 39.04.152(5) | no penalty statedDisputes |
| Withhold no more than 5% of the moneys a subcontractor or supplier earns on a public project, and pay it interest on that retainage at the rate you receive on your own | none setRCW 60.28.011(4), (5); 39.04.250(2) | a breach of contractDisputes |
| Be released the bonded portion of retainage within 30 days after the public body accepts a retainage bond you submit | 30 daysRCW 60.28.011(6) | a breach of contractDisputes |
| Within 30 days of a subcontractor's request made before final acceptance, give the public body a bond for the subcontractor's share of retainage, and release a subcontractor's retainage within 30 days after accepting its like bond | 30 daysRCW 60.28.011(6) | a breach of contractDisputes |
| Be paid the retainage in full 60 days after completion of all contract work, once the lien notice period has run and the DOR, ESD and L&I releases are in hand | 60 daysRCW 60.28.011(3), (7), 60.28.021, 60.28.051, 60.28.060; 39.12.040(1)(b) | a breach of contractDisputes |
| As a person who performed labor or furnished supplies on a public improvement, give notice of a lien on the retainage within 45 days of completion of the contract work | 45 daysRCW 60.28.011(2), (11), 60.28.021; 39.08.030(1) | the claim is barredMissed claims |
| When supplying materials, supplies or equipment for a public work, give the contractor written notice that a lien on the retained percentage may be claimed, since it covers only what was furnished from 60 days before it | 60 daysRCW 60.28.015 | the claim is barredMissed claims |
| Bring an action to foreclose a lien on the retainage within 4 months from filing the claim | 4 monthsRCW 60.28.030 | the claim is barredMissed claims |
| Give the public body a bond with a surety company, for the full contract price, conditioned to perform the contract and to pay all laborers, mechanics, subcontractors and suppliers | none setRCW 39.08.010(1)-(5), 39.08.015, 39.08.030(1)(a), (2); 39.04.152(5) | a breach of contractLapsed compliance |
| As a laborer, mechanic, subcontractor or supplier, file a written notice of claim against the contractor's bond with the public body within 30 days after the contract is completed and the work accepted | 30 daysRCW 39.08.010(1), (2), 39.08.030(1) | the claim is barredMissed claims |
| When supplying materials, supplies or provisions to a subcontractor on a public work, give the contractor written notice within 10 days after the first delivery that the contractor and its bond will be held for payment | 10 daysRCW 39.08.065 | the claim is barredMissed claims |
| Pay each subcontractor its share of a payment received for public work within 10 days after receiving it | 10 daysRCW 39.04.250(1)-(3) | a breach of contractDisputes |
| Charge interest, for every month and part of a month, on any payment or retainage wrongfully withheld from you on a public work, at the highest rate allowed under RCW 19.52.025 | none setRCW 39.04.250(3); 19.52.025 | no penalty statedDisputes |
| On a public work at or above the awarding body's cost threshold, have no less than 15% of the labor hours performed by apprentices, as the contract specifications require | none setRCW 39.04.320(1)-(4), (8), (9); 39.12.055(3) | a breach of contractLapsed compliance |
| On a project subject to apprentice utilization, give the awarding agency an apprentice utilization plan before receiving the notice to proceed | none setRCW 39.04.350(3), (4)(e) | a breach of contractLapsed compliance |
| Be paid by the public body on the date the contract specifies, and not later than 30 days after it receives a properly completed invoice or the goods or services, whichever is later | 30 daysRCW 39.76.011(1), (2)(a), (3) | no penalty statedDisputes |
| Receive any written notice that a public works payment is withheld, stating specifically why and the remedial action required, within 8 working days after the public body receives the payment request | 8 working daysRCW 39.76.011(2)(b)-(d), (3)(b) | no penalty statedDisputes |
| Charge the public body interest at 1% per month, and at least USD 1 a month, on any amount it does not pay on time | none setRCW 39.76.011(1), 39.76.020, 39.76.040 | no penalty statedDisputes |
| Before withholding a subcontractor's payment for unsatisfactory performance, give it notice of the remedial action needed before its payment is due, copy the notice to the public body, and pay within 8 working days after the remedy is complete | 8 working daysRCW 39.76.011(2)(e) | no penalty statedDisputes |
In this guide
- Prevailing wageWashington prevailing wage under RCW 39.12: the statement of intent before any payment, the affidavit of wages paid, monthly certified payroll, apprentices.
- RetainageWashington retainage under RCW 60.28: no more than 5%, held in trust, a retainage bond released within 30 days, and release 60 days after completion.
- Bond and retainage claimsUnpaid on a Washington public work: a bond claim within 30 days of acceptance, a retainage lien within 45 days, and the supplier notices.
- Prompt paymentWashington prompt payment: the public body pays within 30 days, withholding notice within 8 working days, subcontractors paid within 10 days, interest.
What this page is, and is not
It is the section text this library holds for Washington State, read from the Revised Code of Washington and the Washington Administrative Code, among them chapter 39.12 RCW, chapter 60.04 RCW and chapter 19.122 RCW, with the window and the consequence. It is not legal advice, and it is not a substitute for reading the statutes, the contract you signed and its specifications.
Demiton does not track jobs in Washington yet. These pages set out the duties the library holds for a Washington job, so you can check your own.
No library of law is complete, and Demiton never says this one is. An obligation the library does not hold, and you did not add, is not protected. You can add your own to any job.