Requiring subcontractors on public works contracts to be indemnified for certain expenses incurred as a result of late payments from a contractor or a subcontractor.

 H-1237.1

HOUSE BILL 1950

State of Washington

69th Legislature

2025 Regular Session

By Representatives Entenman, Ramel, Pollet, Reed, and Hill

Prefiled 02/11/25. Read first time 02/12/25. Referred to Committee on Capital Budget.

AN ACT Relating to requiring subcontractors on public works contracts to be indemnified for certain expenses incurred as a result of late payments from a contractor or a subcontractor; and adding a new section to chapter 39.04 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 39.04 RCW to read as follows:

(1) For all public works projects governed under this chapter, if a subcontractor that is certified by the office of minority and women's business enterprises under chapter 39.19 RCW is unable to timely make any required employer contributions to a Taft-Hartley trust due to a contractor or subcontractor violating the requirements of RCW 39.04.250 , the contractor or subcontractor that violated RCW 39.04.250 shall promptly indemnify the subcontractor that was unable to make the contributions to the Taft-Hartley trust for any fees or other penalties associated with the subcontractor's failure to make timely contributions to the Taft-Hartley trust.