HOUSE BILL REPORT

SSB 6435

As Amended by the House

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Lee and Owen)

Changing provisions relating to disclosure by contractors.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 2, 1988

BACKGROUND:

Since 1987, construction contractors have been required to provide their customers with information about their contractor registration bond and construction liens.  This disclosure must be made to all customers with a project on real property having a price of $1,000 or more, unless the project involves more than four residential units or is a public works project.  A contractor who fails to provide the required notice may not maintain a lawsuit to collect compensation under the contract or damages for breach of contract.

SUMMARY:

Contractors must provide the statutory customer disclosure on projects involving repair, alteration, or construction of four or fewer residential units or accessory structures on such residential property when the total contract or bid price is $1,000 or more, or if the project is for a commercial building when the bid or contract price is $1,000 or more, but less than $60,000.  Beginning July 1, 1989, a contractor must also disclose the expiration date of his or her contractor registration and notify the customer if the registration is revoked or suspended before completion of the contract.

A contractor who fails to provide the required notice may not maintain a lien claim against the property that is the subject of the contract.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Duke Schaub, Associated General Contractors;  Doug Bohlke and Bobette Jones, Contractor Bonding and Insurance Company;  Gary Smith, Independent Business Association; and Larry Sunquist, Building Industry Association of Washington.

House Committee - Testified Against:      Bob Dilger, Washington State Building and Construction Trades Council.

House Committee - Testimony For:    These changes in the contractor disclosure requirements are needed to remove unnecessary disclosure in large commercial ventures and clarify the application to residential construction.

House Committee - Testimony Against:      The increase from $1,000 to $5,000 as the threshold for application of the disclosure requirements is too high.  Many home repair projects fall under $5,000.