BILL REQ. #: S-0549.1
_____________________________________________
SENATE BILL 5186
_____________________________________________| State of Washington | 63rd Legislature | 2013 Regular Session |
By Senators Roach, Conway, Benton, Chase, and ShinRead first time 01/23/13. Referred to Committee on Governmental Operations.
AN ACT Relating to contractor's bond; amending RCW 39.08.030 and
39.08.030; providing an effective date; and providing an expiration
date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 39.08.030 and 2009 c 473 s 1 are each amended to read
as follows:
(1) The bond mentioned in RCW 39.08.010 shall be in an amount equal
to the full contract price agreed to be paid for such work or
improvement, except under subsections (2) and (3) of this section, and
shall be to the state of Washington, except as otherwise provided in
RCW 39.08.100, and except in cases of cities ((and)), towns, and water-sewer districts, in which cases such municipalities may by general
ordinance fix and determine the amount of such bond and to whom such
bond shall run: PROVIDED, The same shall not be for a less amount than
twenty-five percent of the contract price of any such improvement for
cities and towns, and not less than the full contract price of any such
improvement for water-sewer districts, and may designate that the same
shall be payable to such city, town, or water-sewer district and not to
the state of Washington, and all such persons mentioned in RCW
39.08.010 shall have a right of action in his, her, or their own name
or names on such bond for work done by such laborers or mechanics, and
for materials furnished or provisions and goods supplied and furnished
in the prosecution of such work, or the making of such improvements:
PROVIDED, That such persons shall not have any right of action on such
bond for any sum whatever, unless within thirty days from and after the
completion of the contract with an acceptance of the work by the
affirmative action of the board, council, commission, trustees,
officer, or body acting for the state, county or municipality, or other
public body, city, town or district, the laborer, mechanic or
subcontractor, or material supplier, or person claiming to have
supplied materials, provisions or goods for the prosecution of such
work, or the making of such improvement, shall present to and file with
such board, council, commission, trustees or body acting for the state,
county or municipality, or other public body, city, town or district,
a notice in writing in substance as follows:
Such notice shall be signed by the person or corporation making the
claim or giving the notice, and said notice, after being presented and
filed, shall be a public record open to inspection by any person, and
in any suit or action brought against such surety or sureties by any
such person or corporation to recover for any of the items hereinbefore
specified, the claimant shall be entitled to recover in addition to all
other costs, ((attorney's)) attorneys' fees in such sum as the court
shall adjudge reasonable: PROVIDED, HOWEVER, That no ((attorney's))
attorneys' fees shall be allowed in any suit or action brought or
instituted before the expiration of thirty days following the date of
filing of the notice hereinbefore mentioned: PROVIDED FURTHER, That
any city may avail itself of the provisions of RCW 39.08.010 through
39.08.030, notwithstanding any charter provisions in conflict herewith:
AND PROVIDED FURTHER, That any city or town may impose any other or
further conditions and obligations in such bond as may be deemed
necessary for its proper protection in the fulfillment of the terms of
the contract secured thereby, and not in conflict herewith.
(2) Under the job order contracting procedure described in RCW
39.10.420, bonds will be in an amount not less than the dollar value of
all open work orders.
(3)(a) On highway construction contracts administered by the
department of transportation with an estimated contract price of two
hundred fifty million dollars or more, the department may authorize
bonds in an amount less than the full contract price of the project.
If a bond less than the full contract price is authorized by the
department, the bond must be in the form of a performance bond and a
separate payment bond. The department shall fix the amount of the
performance bond on a contract-by-contract basis to adequately protect
one hundred percent of the state's exposure to loss. The amount of the
performance bond must not be less than two hundred fifty million
dollars. The payment bond must be in an amount fixed by the department
but must not be less than the amount of the performance bond. The
secretary of transportation must approve each performance bond and
payment bond authorized to be less than the full contract price of a
project. Before the secretary may approve any bond authorized to be
less than the full contract price of a project, the office of financial
management shall review and approve the analysis supporting the amount
of the bond set by the department to ensure that one hundred percent of
the state's exposure to loss is adequately protected. All the
requirements of this chapter apply respectively to the individual
performance and payment bonds. The performance bond is solely for the
protection of the department. The payment bond is solely for the
protection of laborers, mechanics, subcontractors, and suppliers
mentioned in RCW 39.08.010.
(b) The department shall develop risk assessment guidelines and
gain approval of these guidelines from the office of financial
management before implementing (a) of this subsection. The guidelines
must include a clear process for how the department measures the
state's exposure to loss and how the performance bond amount,
determined under (a) of this subsection, adequately protects one
hundred percent of the state's exposure to loss.
(((c) The department shall report to the house of representatives
and senate transportation committees by December 1, 2012: Each project
where the department authorized bonds that were less than the full
contract price; the difference between the project amount and the bond
requirements; the number of bidders on the project; and other
information that documents the effects of the reduced bond amounts on
the project.))
Sec. 2 RCW 39.08.030 and 2007 c 218 s 89 are each amended to read
as follows:
(1) The bond mentioned in RCW 39.08.010 shall be in an amount equal
to the full contract price agreed to be paid for such work or
improvement, except under subsection (2) of this section, and shall be
to the state of Washington, except as otherwise provided in RCW
39.08.100, and except in cases of cities ((and)), towns, and water-sewer districts, in which cases such municipalities may by general
ordinance fix and determine the amount of such bond and to whom such
bond shall run: PROVIDED, The same shall not be for a less amount than
twenty-five percent of the contract price of any such improvement for
cities and towns, and not less than the full contract price of any such
improvement for water-sewer districts, and may designate that the same
shall be payable to such city, town, or water-sewer district and not to
the state of Washington, and all such persons mentioned in RCW
39.08.010 shall have a right of action in his, her, or their own name
or names on such bond for work done by such laborers or mechanics, and
for materials furnished or provisions and goods supplied and furnished
in the prosecution of such work, or the making of such improvements:
PROVIDED, That such persons shall not have any right of action on such
bond for any sum whatever, unless within thirty days from and after the
completion of the contract with an acceptance of the work by the
affirmative action of the board, council, commission, trustees,
officer, or body acting for the state, county or municipality, or other
public body, city, town or district, the laborer, mechanic or
subcontractor, or material supplier, or person claiming to have
supplied materials, provisions or goods for the prosecution of such
work, or the making of such improvement, shall present to and file with
such board, council, commission, trustees or body acting for the state,
county or municipality, or other public body, city, town or district,
a notice in writing in substance as follows:
Such notice shall be signed by the person or corporation making the
claim or giving the notice, and said notice, after being presented and
filed, shall be a public record open to inspection by any person, and
in any suit or action brought against such surety or sureties by any
such person or corporation to recover for any of the items hereinbefore
specified, the claimant shall be entitled to recover in addition to all
other costs, ((attorney's)) attorneys' fees in such sum as the court
shall adjudge reasonable: PROVIDED, HOWEVER, That no ((attorney's))
attorneys' fees shall be allowed in any suit or action brought or
instituted before the expiration of thirty days following the date of
filing of the notice hereinbefore mentioned: PROVIDED FURTHER, That
any city may avail itself of the provisions of RCW 39.08.010 through
39.08.030, notwithstanding any charter provisions in conflict herewith:
AND PROVIDED FURTHER, That any city or town may impose any other or
further conditions and obligations in such bond as may be deemed
necessary for its proper protection in the fulfillment of the terms of
the contract secured thereby, and not in conflict herewith.
(2) Under the job order contracting procedure described in RCW
((39.10.130)) 39.10.420, bonds will be in an amount not less than the
dollar value of all open work orders.
NEW SECTION. Sec. 3 Section 1 of this act expires June 30, 2016.
NEW SECTION. Sec. 4 Section 2 of this act takes effect June 30,
2016.
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