S-993                 _______________________________________________

                                                   SENATE BILL NO. 5439

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Newhouse and Fleming

Read first time 1/25/89 and referred to Committee on   Economic Development & Labor.

AN ACT Relating to contractor's bonds; and amending RCW 39.08.010.

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

        Sec. 1.  Section 1, chapter 207, Laws of 1909 as last amended by section 5, chapter 98, Laws of 1982 and RCW 39.08.010 are each amended to read as follows:

          Whenever any board, council, commission, trustees, or body acting for the state or any county or municipality or any public body shall contract with any person or corporation to do any work for the state, county, or municipality, or other public body, city, town, or district, such board, council, commission, trustees, or body shall require the person or persons with whom such contract is made to make, execute, and deliver to such board, council, commission, trustees, or body a good and sufficient bond, with two or more sureties, or with a surety company as surety, conditioned that such person or persons shall faithfully perform all the provisions of such contract and pay all laborers, mechanics, and subcontractors and materialmen, and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, which bond in cases of cities and towns shall be filed with the clerk or comptroller thereof, and any person or persons performing such services or furnishing material to any subcontractor shall have the same right under the provisions of such bond as if such work, services or material was furnished to the original contractor:  PROVIDED, HOWEVER, That the provisions of RCW 39.08.010 through 39.08.030 shall not apply to any money loaned or advanced to any such contractor, subcontractor or other person in the performance of any such work:  PROVIDED FURTHER, That on contracts of twenty-five thousand dollars or less, at the option of the contractor the respective public entity may, in lieu of the bond, retain fifty percent of the contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the  department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later: AND PROVIDED FURTHER, That on contracts of fifteen thousand dollars or less, at the option of the contractor, the respective public entity, may, upon a finding of substantial economic hardship, waive the bond required pursuant to this section, and establish such alternative procedures as will guarantee reasonable assurance of performance of the contract and payment to all laborers, mechanics, subcontractors, materialmen, and all persons who supply such person or persons or subcontractors, with provisions and supplies for the carrying on of such work.