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2009 Legislation
Affecting Public Works Contracting
Michael E. PurdyContracts Manager
University of Washington
John W. CarpitaPublic Works Consultant
Municipal Research and Services Center
June, 2009
Your Legislature at Work
I have come to the conclusion that the making of laws is like the making of sausages—the less you know about the process the more you respect the
result.[John Godfrey Saxe in The Daily Cleveland Herald, Mar. 29, 1869]"No man's life, liberty,
or property are safe while the legislature is
in session."[Often attributed to Mark Twain]
Terminology HB = House Bill SHB = Substitute House Bill ESHB = Engrossed Substitute
House Bill SB = Senate Bill SSB = Substitute Senate Bill ESSB = Engrossed Substitute
Senate BillLook up Bills
http://apps.leg.wa.gov/billinfo/
Effective Date of Legislation
July 26, 2009
04/10/2023
Your Legislature at Work
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AgendaBid and Purchase Limits
HB 1196 – Increasing the Dollar Limit For Small Works Roster Projects
ESHB 1847 – Bid Limits SB 5228 – Construction Projects by County Forces
Apprenticeship SB 5873 – Apprenticeship Utilization
Bidder Responsibility Debarment
Prevailing Wages SB 5903 – Public Works Contracts for Residential
Construction SSB 5904 – Independent Contractor
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AgendaContracting
HB 1195 – Payment of Undisputed Amounts on Change Orders
Retainage HB 1199 – Retainage of Funds on Public Works Projects HB 1555 – Underground Economy in the Construction
IndustryAlternative Public Works Contracting
HB 1197 – Alternative Public Works Contracting Bills of Note That Didn’t PassLatecomer Agreements
EHB 1513 – Allowing Municipalities to Participate in Financing the Development of Water or Sewer Facility Projects
Sales Taxes SB 6173 – Improving Sales Tax Compliance55
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Bid and Purchase Limits
HB 1196 – Small Works RosterUpper limit for a small public works roster process is raised from $200,000 to $300,000If you choose to solicit bids from less than all the appropriate contractors on the roster, then the amount requiring notification of all contractors on the roster is changed from between $100,000 and $200,000 to between $150,000 and $300,000. Amends RCW 39.04.155 (all authorized agencies) and RCW 53.08.120 (Ports)
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Bid and Purchase LimitsESHB 1847 – Bid Limits
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Cities and Towns Bid Limits
Single Craft Multiple Crafts Old New Old New
First Class Cities Over 150,000 $35,000 $45,000 $70,000 $90,000 First Class City Under 150,000 $30,000 ---- $50,000 ---- Code Citiesy Over 20,000 $30,000 $40,000 $50,000 $65,000 Code City Under 20,000 $30,000 ---- $45,000 ---- 2nd Class Cities & Towns $30,000 $40,000 $45,000 $65,000
Counties Single Craft Bid Limits Multiple Craft Bid Limits Old New Old New
Over 1 M 400 K w/ Purchasing Department $25,000 $45,000 $70,000 $95,000
Over 400 K w/o Purchasing Department ---- $40,000 ---- $40,000
Under 1 M 400 K w/ Purchasing Department $10,000 $40,000 $10,000 $40,000
Under 1 M 400 K w/o Purchasing Department $10,000 $40,000 $10,000 $40,000
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Bid and Purchase Limits
ESHB 1847 – Bid Limits
Other Agencies
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Bid Limits
Single Craft Multiple Crafts
Old New Old New
Water & Sewer Districts (Title 57 RCW) $10,000 $20,000 $10,000 $20,000 Metropolitan Park Districts (Ch. 35.61 RCW) $5,000 $20,000 $5,000 $20,000 Fire Districts (Title 52 RCW) $2,500 $20,000 $2,500 $20,000 Public Hospital Districts (Ch. 70.44 RCW) $50,000 $75,000 $50,000 $75,000 Housing Authorities (Ch. 35.82 RCW) ?? ?? ?? ?? School Districts (RCW 28A.335.190) $40,000 $40,000 $40,000 $40,000 Higher Education (RCW 28B.10.3.50) $35,000 $45,000 $55,000 $90,000 Port Districts (Title 53 RCW) $200,000, except note RCW 53.08.135 Public Utility Districts (Title 54 RCW) See RCW 54.04.070 & 54.04.082
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Bid Limits for Selected Authorized Agencies (Includes ESHB 1847 Changes, Effective July 26, 2009)
Bid Limits
Cities and Towns
Single Craft Multiple Crafts
First Class City $45,000 (1) $90,000 (1)
Code City $40,000 $65,000
2nd Class City & Towns $40,000 $65,000
Counties
Over 400 K w/ Purchasing Department (RCW 36.32.235)
$45,000 (2,3) $90,000 (2,3)
Over 400 K w/o Purchasing Department (RCW 36.32.240,250)
$40,000 (3,4) $40,000 (3,4)
Under 400 K w/ Purchasing Department (RCW 36.32.240,250)
$40,000 (3,4) $40,000 (3,4)
Under 400 K w/o Purchasing Department (RCW 36.32.250)
$40,000 (3,4) $40,000 (3,4)
Water & Sewer Districts (Title 57 RCW) $20,000 $20,000 Metropolitan Park Districts (Ch. 35.61 RCW) $20,000 $20,000 Fire Districts (Title 52 RCW) $20,000 $20,000 Port Districts (Title 53 RCW) $200,000, except note RCW 53.08.135 Public Utility Districts (Title 54 RCW) See RCW 54.04.070 & 54.04.082 Public Hospital Districts (Ch. 70.44 RCW) $75,000 $75,000 Housing Authorities (Ch. 35.82 RCW) ?? ?? School Districts (RCW 28A.335.190) $40,000 $40,000 1) RCW 35.22.620(2) further limits the dollar value of public works performed by city employees or day labor to ten (10) percent of the total public works construction budget in a given budget period. Work performed within a city by county employees under an interlocal agreement is to be included in this limit. 2) Also subject to annual limit of 10% of public works construction budget (RCW 36.32.235). 3) Also subject to county road force limitations for road funds under RCW 36.77.065. 4) Not a bid limit, per se, but is a limit below which informal contracting procedures may be used.
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Bid and Purchase Limits
SB 5228 - Construction Projects by County Forces
The term "day labor" is removed from the statutes and replaced with "county forces”
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County Population
Basic Dollar Volume
County Forces Construction
Multiplied by the Previous Year's Motor
Vehicle Fuel Tax Distribution Factor
(DF)
Total Dollar Volume County Forces Construction
Under 30,000 $ 0.7 M DF $ 0.7 M + (DF x $ 0.7 M) 30,000 to 150,000 $ 1.15 M DF $ 1.15 M +(DF x $ 1.15 M)
150,000 to 400,000 $ 1.75 M DF $ 1.75 M +(DF x $ 1.75 M) Over 400,000 $ 3.25 M DF $ 3.25 M + (DF x $ 3.25 M)
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Apprenticeship
SB 5873 – Apprenticeship Utilization Topics addressed:
1. Apprenticeship Utilization for higher education2. Bidder Responsibility3. Debarment
RCWs affected:1. 39.04.320 (apprenticeship)2. 39.04.350 (bidder responsibility)3. 39.12.055 (debarment)
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Apprenticeship
SB 5873 – Apprenticeship Utilization RCW 39.04.320 Agencies Covered by Apprenticeship
Requirements:• School districts• WSDOT• State Department of General Administration• Four-year institutions of higher education
• (added by SB 5873)
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Apprenticeship
SB 5873 – Apprenticeship Utilization• Date: Effective for projects bid after Jan. 1,
2010
• Registration: Apprentices must be registered in a state- approved apprenticeship program
• Percentage requirements for use of apprentices
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Estimated to cost Bid after Percentage Required
$3 million January 1, 2010 10%
$2 million January 1, 2011 12%
$1 million January 1, 2012 15%
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Apprenticeship
SB 5873 – Apprenticeship Utilization• RCW 39.04.350• Mandatory Bidder Responsibility Criteria• Adds apprenticeship compliance as
mandatory criteria:1. Registered contractor
At time of bid submittal (RCW 18.27.020)2. Current UBI number3. Industrial insurance coverage4. Employment security department number5. State excise tax registration number6. Not disqualified from bidding7. Not in violation of apprenticeship requirements
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Apprenticeship
SB 5873 – Apprenticeship Utilization• RCW 39.04.350
Applicability: Mandatory Bidder Responsibility Criteria for violation of apprenticeship requirements applies only: a) Agencies: To the following agencies
1. Four-year institutions of higher education2. School districts3. WSDOT4. State Department of General Administration
b) With Requirements: And when apprenticeship requirements apply to a project
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Apprenticeship
SB 5873 – Apprenticeship UtilizationRCW 39.04.350
Violation of Apprenticeship requirements:1. Working apprentices out of ratio2. Working apprentices without appropriate
supervision3. Working apprentices outside their approved
work processes (scope and standards) Non-compliance:
By State Apprenticeship and Training Council For 1 year immediately preceding the date of
the bid solicitation
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Apprenticeship
SB 5873 – Apprenticeship UtilizationRCW 39.12.055
Debarment Apprenticeship Violations: Adds apprenticeship
violations to list of reasons for “debarment” (not being allowed to bid) Working apprentices out of ratio Working apprentices without appropriate supervision Working apprentices outside their approved work
processes
Applicability: Applies to public works projects by all public agencies Not just those subject to RCW 39.04.320
(apprenticeship) Not part of bidder responsibility that references
debarment under RCW 39.04.065 (3) for prevailing wage violations
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ApprenticeshipSB 5873 – Apprenticeship Utilization
• RCW 39.12.055 • Debarment “A contractor shall not be allowed to bid on any public works
contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations or infractions within a five-year period:1. Workers Compensation: Violated RCW 51.48.020(1) or
51.48.103;2. Contractor Registration: Committed an infraction or
violation under chapter 18.27 RCW for performing work as an unregistered contractor; or
3. Apprenticeship: Determined to be out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW.”
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ApprenticeshipSB 5873 – Apprenticeship Utilization
RCW 39.12.055 Debarment Outstanding Issues:
1. Information not readily available for violations: Workers Compensation Contractors Registration
2. Labor & Industries should be developing website for access on Apprenticeship violations
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Prevailing Wages1. SB 5903
Residential Construction Wage Rates
2. SSB 5904 Defining Independent Contractors
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Prevailing WagesSB 5903 – Residential Wages What is residential construction?
"Residential construction" means construction, alteration, repair, improvement, or maintenance of single family dwellings, duplexes, apartments, condominiums, and other residential structures not to exceed four stories in height, including basement, when used solely as permanent residences. It does not include the utilities construction (water and sewer lines), or work on streets, or work on other structures (e.g., for recreation and business.)
WAC 296-127-010 (9)2121
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Prevailing WagesSB 5903 – Residential Wages Amends RCW 39.12.030 Specs: Public Works specs must:
1. Include applicable prevailing wage rates
2. Require that workers be paid not less than the prevailing wage rate
3. If work is subject to residential prevailing wage rates, include that information
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Prevailing WagesSB 5903 – Residential Wages SB 5903 addresses the following:
1. Residential wage rates are to be listed in the contract documents
2. If it is later determined that commercial wages apply, the public agency must pay the difference
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Prevailing WagesSSB 5904 – Independent
Contractor Problem:
Misclassification of workers as independent contractors instead of employees Example: Carpet installation
Abuse: By misclassifying workers as independent
contractors, contractors avoid paying: Workers Compensation Prevailing Wages
Solution: Provide standards for when an individual is
an independent contractor and not considered a worker subject to prevailing wages
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Prevailing WagesSSB 5904 – Independent
Contractor Summary:
If an individual has various characteristics typical of a business then he/she may be considered a business (independent contractor) and not a worker subject to prevailing wages
Impact on Public Agencies: L&I enforcement issue
Contract L&I if you have concerns Awareness as part of monitoring prevailing
wages
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Prevailing WagesSSB 5904 – Independent
Contractor Not considered to be a worker (and therefore
considered a independent contractor) when:1. Independence: Individual is free from control
or direction in performing the work– A worker receives direction; an
independent contractor receives general direction with respect to compliance with specifications
– Are there multiple independent contractors working under one contractor or subcontractor, or should they be workers subject to prevailing wages?
– Does the worker provide their own tools or does employer provide them?
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Prevailing WagesSSB 5904 – Independent
Contractor Not considered to be a worker (and therefore
considered a independent contractor) when:2. What’s Normal? Work performed by individual
is: Outside usual course of business for the
contractor the individual performs services for, or
Outside of all places of business of the enterprise the individual performs services for, or
Individual is responsible for costs of principal place of business from which the service is performed.
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Prevailing WagesSSB 5904 – Independent
Contractor Not considered to be a worker (and therefore
considered a business) when:3. Separate Business: Individual:
“Is customarily engaged in an independently established trade…of the same nature” as the services provided, or
Has a principal place of business that is eligible for a business deduction for federal income tax purposes
4. Tax Filings: Individual is responsible for filing a schedule of expenses with the IRS for the type of business individual is conducting.
5. State Registrations: Individual is registered with Department of Revenue, has UBI number, and has active and valid accounts with other applicable state agencies.
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Prevailing WagesSSB 5904 – Independent
Contractor Not considered to be a worker (and therefore
considered a business) when:
6. Separate Books: The individual maintains a separate set of books or records reflecting income and expenses of the business which the individual is conducting.
7. Registered as a Contractor: Nature of work performed requires registration as a contractor and the individual is registered.
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ContractingHB 1195 – Payment on Change
Order Work Problem being addressed:
Agencies that do not execute change orders (or pay on change order work) until the end of the project
New Requirement in RCW 39.04: No later than 30 days after satisfactory completion
of Any additional work, or Portion of additional work
Agency shall issue a change order for the full dollar amount of the work not in dispute
If such change order not issued within 30 days Interest accrues on amount satisfactorily completed
and not in dispute Additional work “is work beyond the scope defined
in the contract.” Does not sanction cardinal changes.3030
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ContractingHB 1195 – Payment on Change
Order Work Scenario:
Additional work performed Through field order authorization Based on unit prices
All work satisfactorily completed How much is owed
Owner and Contractor agree on $85,000 Owner and Contractor in dispute about value of
remaining portion of work Issue change order for the $85,000 Resolve the disputed amount
Who defines “satisfactorily completed”? Owner – normally don’t pay if work not satisfactory Both parties must agree on amount or it’s in
dispute3131
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RetainageHB 1199 – Retainage Clean-upRepeals various laws that relate to public works contracts entered into prior to September 1, 1992
Changes references in other laws
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Old Laws Repealed Current Law Subject
RCW 60.28.010 RCW 60.28.011 Retainage
RCW 60.28.020 RCW 60.28.021 Retainage
RCW 60.28.050 RCW 60.28.051 Retainage
RCW 39.76.010 RCW 39.76.011 Prompt Payment
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RetainageSHB 1555 - Underground
Economy
1. Purpose of Retainage2. Notification to State Agencies3. Obtaining State Releases4. Priority of Claims Against Retainage5. Outstanding Issues6. Business Licenses & Contractor
Registration 3333
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RetainageSHB 1555 - Underground
Economy
Purpose of Retainage
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Current Law New Law
Prevailing Wage workers Prevailing Wage workers
Subcontractors and Suppliers Subcontractors and Suppliers
Department of Revenue Department of Revenue
Employment Security Dept.
Dept. of Labor & Industries
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RetainageSHB 1555 - Underground
Economy
Notification to State
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Current Law New Law
Department of Revenue Department of Revenue
Employment Security Dept.- Through Revenue
Employment Security Dept.
Dept. of Labor & Industries
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RetainageSHB 1555 - Underground
Economy
Obtaining State Releases
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Current Law New Law
Department of Revenue Department of Revenue
Employment Security Dept.- By practice
Employment Security Dept.
Dept. of Labor & Industries- By practice - Employer Liability Certificate printed online by awarding agency or contractor
Dept. of Labor & Industries
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RetainageSHB 1555 - Underground
EconomyRevised Priority of Claims
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# Current law New law1 Workers not paid prevailing
wagesWorkers not paid prevailing wages
2 Dept. of Revenue – taxes due on public works project
Dept. of Revenue – taxes due on public works project
3 Subcontractors and suppliers Dept. of Revenue – taxes due on other projects
4 Other taxes due – Dept of Revenue for other projects, ESD, L&I, IRS, etc.
ESD and L&I for taxes due on public works project
5 The Owner Subcontractors and suppliers6 Other taxes due (ESD, L&I for
taxes due on other projects; other taxes)
7 The Owner
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RetainageSHB 1555 - Underground Economy
Outstanding Issues1. L&I Release: L&I doesn’t issue a release
certificate, but new law requires it L&I, ESD, and Revenue are meeting to coordinate actions
regarding notification and certificates2. Access to Retainage: L&I and ESD have long
claimed to be able to collect from public agencies for unpaid premiums directly and not from retainage RCW 51.12.050 (Workers Compensation) RCW 50.24.130 (Unemployment Compensation)
3. Subcontractor Concerns: Subcontractors and Suppliers may push for amended legislation
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Retainage
SHB 1555 - Underground EconomyOutstanding Issues
4. Conflict between $35,000 vs. $20,000 Dept. of Revenue Threshold for Priority of
Claims: Only for Revenue claims on this project, not
other projects
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Current Law HB 1199 SHB 1555
$20,000 $35,000* $20,000
*Clean-up legislation of what should have been addressed in 2007
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RetainageSHB 1555 - Underground EconomyOutstanding Issues
4. Conflict between $35,000 vs. $20,000 – SHB 1555, section 7 (1) Subject to subsection (5) of this section, the amount of all taxes,
increases, and penalties due or to become due under Title 82 RCW, from a contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is twenty thousand dollars or more, shall be a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract
(2) Subject to subsection (5) of this section, after payment of all taxes, increases, and penalties due or to become due under Title 82 RCW, from a contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is twenty thousand dollars or more, the amount of all other taxes, increases, and penalties under Title 82 RCW, due and owing from the contractor, shall be a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract.
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Subsection 1Revenue – this project
Subsection 2Revenue – this project
Subsection 3ESD and L&I
$20,000 (SHB 1555) $20,000 (SHB 1555)* $20,000 (SHB 1555)
$35,000 (HB 1199) * Referring back to this project mentioned in Subsection 1
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RetainageSHB 1555 - Underground Economy
Outstanding Issues
4. Conflict between $35,000 vs. $20,000 Notification Responsibilities: SHB 1555 requires
public agencies to only notify Revenue, ESD, and L&I of projects over $35,000 (RCW 60.28.051)
Claim Rights of State Agencies: SHB 1555 only gives them claim rights for contracts of $20,000 or more, leaving gap between $20,000 and $35,000 when awarding agencies must notify State agencies.
Current ESD Threshold: SHB 1555 uses $20,000 for Employment Security and L&I releases when current practice is $35,000 for ESD.
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RetainageSHB 1555 - Underground EconomyBusiness Licenses & Contractor Registration List of Subcontractors: “A contractor must maintain and have
available for inspection by the department a list of all direct subcontractors and a copy of their certificate of registration.” (RCW 18.27)
Verify Registration Before Business License: An agency “that issues a business license to a person required to be registered under chapter 18.27 RCW may verify that the person is registered under chapter 18.27 RCW and report violations to the department of labor and industries.” Agencies Affected:
Cities: RCW 35.21 (cities and towns), 35A.21 (code cities)
Counties: RCW 36.01 “The department of licensing shall conduct the verification
for cities that participate in the master license system.
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Alternative Public Works Contracting
HB 1197 – Alternative Public WorksDesign-Build
Threshold Amount: Allows for 10 Design-Build projects with a total project cost between $2 and $10 million June 2010 report to CPARB due
DBOM: Allows for 2 Design-Build projects that include procurement of operations and maintenance services for a period longer than 3 years
Honorarium: Allows honorarium payments to Design-Build finalists submitting “responsive” proposals, rather than “best and final.” Owner may not always use “best and final”
process4343
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Alternative Public Works Contracting
HB 1197 – Alternative Public Works
GC/CM Requires public bid openings for GC/CM
submission of their prices Previous scores must be open for public review at
bid opening
Job Order Contracting Allows UW, GA, and WSU to issue job order
contract work orders for regional universities and The Evergreen State College
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Alternative Public Works Contracting
HB 1197 – Alternative Public Works
Certification of Public Bodies
GC/CM: For GC/CM certification, must demonstrate successful management of at least one GC/CM project within last 5 years.
Design-Build: For Design-Build certification, must demonstrate successful management of at least one Design-Build project within last 5 years.
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Alternative Public Works Contracting
Attorney General Opinion on Housing AuthoritiesAre Housing Authorities subject to RCW 39.10?
Definition of Public Body: Housing Authorities are a "public body“
Exemption? Housing authorities have pointed to RCW 35.82.070, arguing they are not subject to various state laws "unless the legislature shall specifically so state."
Limited application of Exemption: Provision only applies to laws "with respect to the acquisition, operation or disposition of property.“
Exemption not applicable to Alternative Public Works: Attorney General stated that chapter 39.10 RCW is "not a statute relating to the acquisition, operation, or disposition of property, and therefore, RCW 35.82.070(10) does not exempt public housing from the provisions of RCW 39.10.“
Attorney General Opinion 2009, No. 2, issued on April 24, 2009
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Bills of Note That Didn’t Pass
HB 1200 – Bid Negotiation: Would have permitted municipalities (not just the State) to negotiate an adjustment to the bid price with the low responsive bidder subject to various conditions.EHB 1836 – Off-Site Prefabrication: Would have required reporting by agencies of information related to out-of-state off-site prefabrication.SSB 5969 – Listing of Subcontractors: Would have removed requirement that substituted subcontractor prove that they were substituted “in furtherance of bid shopping.” Added other reasons for legitimate substitution.
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Bills of Note That Didn’t Pass
HB 1690 – Applicability of Alternative Public Works: Would have clarified the intent of the legislature that only the Alternative Public Works Contracting procedures outlined in chapter 39.10 RCW were authorized.
HB 1830 – Small Works Roster Use of Small Businesses: Would have defined microbusiness, minibusiness, and small business based on gross revenue and permitted solicitation of only these businesses when using the Limited Public Works process under the Small Works Roster.
Latecomer AgreementsEHB 1513 – Municipality Financing ParticipationRCW 35.91.020
This RCW is known as the Municipal Water and Sewer Facilities Act
Applies to cities, towns, counties, water-sewer districts, and drainage districts (“municipalities”)
Allows developers to be reimbursed by subsequent developers for constructing water, sewer and stormwater facilities that serve undeveloped property
EHB 1513 allows a municipality to initiate a latecomer agreement on its own or to contribute funds to a developer project and to be reimbursed proportionately
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Latecomer AgreementsEHB 1513 – Municipality Financing ParticipationCh. 35.72 RCW is a similar statute that provides for reimbursement for transportation facilitiesCh 35.72 RCW already allows a city, town, or county to initiate a latecomer agreement on its own or to contribute funds to a developer transportation facilities project and to be reimbursed proportionately
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Bill Affecting Latecomer Agreements
EHB 1513 – Municipality Financing ParticipationNeither EHB 1513 nor the existing ch. 35.73 RCW address the fundamental issues of public works contracting and prevailing wages
If a municipality participates in a latecomer agreement, does that participation make the work included in the latecomer agreement a public works project?
MRSC suggested the additional language on the next slide to address this issue, but it was not included in the billAWC will seek to have this language included in then 2010 session04/10/2023 51
Latecomer AgreementsEHB 1513 – Municipality Financing ParticipationMRSC suggested the following additional language:
If a municipality joins in the financing of an improvement project for water or sewer facilities, but construction is done by an owner of real estate, construction of the facilities is subject to prevailing wages under chapter 39.12 RCW, but is not subject to public works bid law. If a municipality creates an assessment reimbursement area on its own initiative, without the participation of a private property owner, then construction of the facilities is subject to prevailing wages under chapter 39.12 RCW, and subject to public works bid law.
If a county, city or town joins in the financing of a transportation improvement project , but construction is done a by an owner of real estate, construction of the facilities is subject to prevailing wages under chapter 39,12 RCW, but is not subject to public works bid law. If a county, city or town creates an assessment reimbursement area on its own initiative, without the participation of a private property owner, then construction of the improvement project is subject to prevailing wages under chapter 39,12 RCW, and subject to public works bid law.
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Sales TaxesSB 6173 - Improving Sales Tax Compliance
Makes the purchase of materials and subcontractor services for construction retail sales
Requires contractors and other construction businesses to pay retail sales tax after January 1, 2010.
Construction businesses would be allowed to claim a credit on their excise tax returns for the amount of retail sales or use taxes already paid on the purchase or use of materials or paid by subcontractors.
The bill provides sales and use tax exemptions to maintain eligibility for construction projects under sales and use tax deferral certificates or specific exemptions.
Does not directly impact agencies in terms of reporting, but may impact costs.
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Experience: Mike Purdy has more than 29 years of experience as a manager in public contracting and procurement in Seattle. He is the Contracts Manager for the University of Washington’s Capital Projects Office and is responsible for managing design and construction contracts for more than $1 billion worth of projects at the University. Before joining the UW in 2005, he spent five years at the Seattle Housing Authority where he served as Contracting and Procurement Manager, overseeing all of the contracting and purchasing (construction, design consultants, other consultants, goods, supplies, and services) for the largest residential landlord in the state. Prior to that he worked for the City of Seattle for more than 21 years, where he administered the City’s construction and consultant contracts as the City’s Contracting Manager.
He is also the principal of Michael E. Purdy Associates (www.mpurdy.com), a consultant firm established in 2005 to help public agencies and businesses develop and implement effective contracting strategies, solve complex contracting problems, and obtain tailored training in contract administration. He maintains the popular Public Contracting Blog at http://PublicContracting.blogspot.com.
Education: He has a bachelor’s degree in business and public administration and an MBA, both from the University of Puget Sound, and a master of divinity degree from Fuller Theological Seminary.
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Michael E. Purdy Contracts Manager University of Washington
Capital Projects Office
(206) [email protected]
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John W. Carpita Public Works Consultant Municipal Research and Services Center
(206) [email protected]
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