SENATE BILL REPORT
SB 6500
BYSenators Bender and von Reichbauer
Regulating subcontracting in public improvements construction.
Senate Committee on Economic Development & Labor
Senate Hearing Date(s):January 16, 1990
Senate Staff:Jonathan Seib (786-7427)
AS OF JANUARY 15, 1990
BACKGROUND:
Bids submitted by general contractors on public works projects incorporate the work to be done by subcontractors. These contractors, however, are rarely required to reveal the subcontractors so incorporated, or to remain with those subcontractors once the contract is awarded. This allows "bid shopping," whereby the general awarded the contract shops for subcontractors willing to do work at a lower price than the subcontractors incorporated into the original bid.
SUMMARY:
The state or any municipality taking bids for any public work must require the prime contractor to include in his or her bid: (1) the name and address of all subcontractors who will provide in excess of one-half of 1 percent of the prime contractor's total bid, and (2) a description of the work to be done by the listed subcontractors.
A prime contractor whose bid is accepted may change a previously listed subcontractor only upon approval of the awarding agency in situations where the listed sub is unable or unwilling to perform in a satisfactory manner. Procedures for making the substitution are set forth.
Contractors are prohibited from circumventing the intent of the bill by subletting to a contractor who in turn sublets the work covered by the contract.
Procedures are set forth to resolve claims by contractors that certain subcontractors were listed due only to clerical error.
Violation of these provisions constitutes violation of the contract. The awarding authority may cancel the contract or assess the prime contractor a penalty of not more than 10 percent of the amount of the subcontract involved. Violations also constitute grounds for action under RCW 18.27, the contractor's licensing statute.
Appropriation: none
Revenue: none
Fiscal Note: requested