2024 Regular Session

BySenators King, Stanford, Mullet, and Nobles

Read first time 01/12/24.Referred to Committee on Labor & Commerce.

AN ACT Relating to additional work and change orders on public and private construction projects; and amending RCW 39.04.360.

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

Sec. 1. RCW 39.04.360 and 2009 c 193 s 1 are each amended to read as follows:

(1) No later than ((thirty))30 days after satisfactory completion of any additional work or portion of any additional work by a contractor, subcontractor, or supplier on a public works project or private construction project, the owner, contractor, subcontractor, ((the)) state, or municipality shall issue a change order to the contract for the full dollar amount of the work not in dispute between the owner, contractor, subcontractor, state, or municipality and the contractor, subcontractor, or supplier. If the owner, contractor, subcontractor, state, or municipality does not issue such a change order within the ((thirty))30 days, interest must accrue on the dollar amount of the additional work satisfactorily completed and not in dispute until a change order is issued. The owner, contractor, subcontractor, state, or municipality shall pay this interest at a rate of one percent per month. For the purposes of this section, additional work is work beyond the scope defined in the contract between the contractor, subcontractor, or supplier and the owner, contractor, subcontractor, state, or municipality.

(2) No later than 30 days after satisfactory completion of any additional work or portion of any additional work and a request by a subcontractor or supplier, the contractor or subcontractor must request a change order from the owner, upper-tier contractor, state, or municipality. If a contractor or subcontractor has requested the change order from the owner, upper-tier contractor, state, or municipality within 30 days of the request from the subcontractor or supplier, the contractor or subcontractor is not liable for any interest on the unpaid dollar amount for any additional work satisfactorily completed and not in dispute if the owner, upper-tier contractor, state, or municipality has not issued the requested change order.

(3) An aggrieved party may bring a civil action for violations of this section in a court of competent jurisdiction for appropriate relief, including interest and reasonable attorneys' fees and costs.