BILL REQ. #:  S-0875.2 

Read first time 02/15/2005.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to the preservation of claim rights of a contractor, subcontractor, or supplier on construction contracts; amending RCW 4.24.370 and 4.24.380; and adding a new section to chapter 4.24 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 4.24 RCW to read as follows:
     Any clause in a construction contract, as defined in RCW 4.24.370, that purports to waive, release, or extinguish the claim rights of a contractor, subcontractor, or supplier to damages or an equitable adjustment based on failure to submit claim notice or claim-related documentation in a specified time frame or form is enforceable to the extent that the party failing to receive such notice or documentation was prejudiced thereby.

Sec. 2   RCW 4.24.370 and 1979 ex.s. c 264 s 2 are each amended to read as follows:
     "Construction contract" for purposes of RCW 4.24.360 and section 1 of this act means any contract or agreement for the construction, alteration, repair, addition to, subtraction from, improvement to, or maintenance of, any building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate, including moving and demolition in connection therewith.

Sec. 3   RCW 4.24.380 and 1979 ex.s. c 264 s 3 are each amended to read as follows:
     (1) The provisions of RCW 4.24.360 shall apply to contracts or agreements entered into after September 1, 1979.
     (2) The provisions of section 1 of this act shall apply to contracts or agreements entered into on or after the effective date of this act.