New Requirements on Retainage and Prelease for Public Projects
Effective October 1, 2009, public agencies cannot release retainage to the contractor until L&I has approved the release by confirming that all subcontractors have paid industrial insurance premiums. MCAWW contractors should encourage the prime contractor and public agency to complete the request to L&I promptly. This will be another obstacle in our efforts to collect retainage.
Click here to view the Requirements on retainage and prelease for public projects.
Click here to view the new Request for Contract Release form.
For more information, visit http://www.lni.wa.gov/FormPub/Detail.asp?DocID=2404
Seller’s Permit Replaces Resale Certificate
Effective January 1, 2010, the resale certificate will be replaced with a reseller permit issued by the Department of Revenue (DOR) (Senate Bill 6173). Reseller permits are free and will be issued to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale without paying retail sales tax. For more information click here.
Proposed Work Comp Rates
The Director of L&I has announced a proposed 7.6% overall average increase for 2010 L&I rates. Contractors who are concerned about increasing rates at this time should be on record. Click here for more.
E-Verify
On July 8, 2009, the Department of Homeland Security (DHS) announced the Administration's intent to "push ahead with full implementation" of a rule requiring federal contractors to use the E-Verify system to verify employees' authorization to work in the U.S. The E-Verify rule will apply to federal solicitations and contract awards government-wide beginning September 8, 2009. The federal contractor rule extends use of the E-Verify system to covered federal contractors and subcontractors, including those who receive American Recovery and Reinvestment Act funds. Click here for more information.
HB 1195, Undisputed Claims. This bill provides that within thirty days of satisfactory completion of any additional public work or portion of additional public work beyond the scope defined in the contract, the state or municipality “shall” issue a change order, or else pay interest at 1% per month.
SB 6173, Improving Sales Tax Compliance. The initial bill would have required that contractors borrow money to pay the tax ultimately due from the consumer, our customer. An amendment we supported creates a “sellers permit,” in place of the “resale certificate,” that will be automatically issued to every contractor who has paid remitted sales tax in the past. That permit will have to be renewed every year (maybe every two years), but will not change the way contractors do business . . . except for the “bad guy.” The “underground” contractors who have been using the “resale certificate” to buy material, but never reported or remitted the sales tax collected from his customers, will not get a “sellers permit,” and will, therefore, not be able to buy tax free.
HB 1847, Raised “bid limits” in two ways. 1. Increases size of “in-house” construction jobs by public employees: 1st class cities and counties over 400,000 population up to $90,000 jobs, $45,000 single trade jobs; 2nd class cities up to $65,000 jobs, $45,000 single trade jobs.
2. Increases size of job given to private contractor without bidding/contract: Community or technical colleges, and all universities raised to $90,000 jobs; fire, metro park, and water-sewer districts up to $20,000; public hospital districts up to $75,000; and irrigation districts $40,000.
HB 1055, Plumbers Certificate “in your possession.” Requiring plumbers, electricians, and elevator mechanics have their certificate and a photo ID in their possession whenever on the job. Department may require visible photo certificates when budget allows. The theory is that with this law, inspectors will have an easier time finding uncertified workers.
HB 1906, Governor’s UI “stimulus” bill. First bill to pass legislature and be signed by Governor. Adds temporary $45 to every weekly benefit check; expands training benefits; expands “shared work” benefits, where employees work part-time, draw partial benefits; cost of benefits are “socialized,” not charged to individual employer.
SB 5963, Unemployment Insurance Conformity. Last bill to pass legislature. This bill had to pass with federal “conformity” changes. (Long, complicated story!) Also, a too large tax rate increase two years ago ballooned our trust fund balance, so this bill contains an across the board decrease in the tax rate for employers, reducing the maximum from 6.5% to 6.0%.
SB 5873, Apprentice Utilization quotas on public works. This bill expands the quotas to public works jobs at the state four-year institutions of higher education.
SB 5613, Stop work orders on construction projects. Would have allowed “stop work” orders on all projects of a construction employer if he is in violation of workers’ comp registration provisions, or misclassification of workers but was amended to say a stop work order may apply only if contractor failed to secure payment of industrial insurance in Washington.
HB 1216, Appropriation for “Wheeler Block”. This appropriation provides funds for a major project on the capitol campus in Olympia.
SB 5854, Requiring energy-efficiency in the built environment. Very controversial bill and under intense lobbying, the proponents relaxed the major timeline to 2031, and provided an “off-ramp” from the requirements if found to be unattainable.
HB 1196, Passed. CPARB: small works rosters. Increases public owners small works roster maximum from $200,000 to $300,000.
HB 1197, CPARB: Small D-B projects; DBOM projects. Allows ten D-B projects between $2 million and $10 million as demonstration projects. Also allows two design-build-operate-maintain projects with longer than three year duration. MCAWW will participate in guideline development.
Stevens vs Brinks Washington State Supreme Court Decision The Washington State Supreme Court's decision in Stevens v. Brink's Home Security has potentially serious consequences for many of our members. The court in Brink's decided that an employer must pay its service technicians back wages for drive time in company owned service trucks from the service technicians' homes to their first service call location, and back home after the last call locations of the day.
Contact Ed Kommers for a member bulletin on the specifics of this decision.
Click here to view the L&I policy dated 9/2/08 regarding “hours worked” and commuting in response to the Stevens vs Brinks decision.
RCW 39.10 (Alternative Public Works, GCCM, Design Build and Job Order Contracting)
Contact Ed Kommers for a summary of the impacts to Specialty Contractors.
Bidder Responsibility
• Definition of Responsible Bidder
• Bidder Responsibility Criteria
• Small Works Roster
• Verification of Subcontractor Responsibility Criteria
Contact Ed Kommers for a white paper summary of the impacts to Specialty Contractors.
