Construction Payment Blog Provides Alerts to Upcoming Lien and Bond Law Changes
The lien blog is a great place to learn about upcoming lien and bond law changes throughout the nation, and to figure out what effect these changes will have. Here is a general link to updates on the changing face of construction lien/bond claims. Recent updates have included information about a House Bill in Illinois that will amend the Illinois Mechanic Lien Act, in order to overturn a controversial court decision in that state, a note that the foreclosure deadline is set to change in Louisiana in August, 2013, and a series on the recent and upcoming changes that entirely alter the mechanic’s law scheme in North Carolina. This post is a way-too-early update on changes coming to Washington State bond law on July 1, 2016.
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RCW 39.08.030 Modified
Currently, and through June 30, 2016, Section 3 of RCW 39.08.030 provides the bonding rules for highway construction contracts of greater than $250 million. In such situations, Washington law allows for a bond in an amount less than the full contract price of the contract provided that certain requirements are met (i.e. both a performance bond and payment bond are obtained; the amount of each is not less than $250 million, the secretary of transportation must approve the bond amount, etc.). Starting on July 1, 2016, however, Section 3 expires. The total effect of the expiration, (if no amendment or addition to the statute is approved by 2016) is unclear. What is clear, however, is that highway construction contracts will no longer be allowed to be bonded for less than the total amount of the project contract.