City public works departments should be aware of SB 6192, passed by the Legislature this year and taking effect on June 6.

The legislation updates requirements for when a change order must be paid to subcontractors and suppliers. Specifically, for any additional work by a contractor, subcontractor, or supplier not in dispute, a change order must be issued within 30 days after receipt from the contractor for issuance of a change order. Within ten days of receipt of a change order from the city or upper-tier contractor, the contractor or subcontractor must issue change orders to lower-tier subcontractors impacted by the change. The owner, contractor, subcontractor, or municipality must pay their proportionate share of any interest owed for the non-issuance of a change order.

AWC encourages cities to read the legislation, discuss the impact of the bill on your public works procedures, and prepare to comply.

Public works change order bill passes both chambers, awaits Governor’s signature

March 1, 2024

After discussions with advocates of the bill, AWC staff no longer have concerns with the impacts of SB 6192. We appreciate the time taken by the bill sponsor and other advocates to explain the intent and implementation of the legislation.

SB 6192 travelled through the House unamended. It has passed both chambers and now heads to the Governor’s desk for signature.

Public works change order bill still moving, but not yet ready for prime time

February 13, 2024

SB 6192 made it through the Senate last week with no amendments. AWC has been actively engaged with the bill sponsor and other advocates. We’ve requested several improvements to the legislation and received a commitment from the sponsor to address our concerns as the bill works its way through the House.

SB 6192 passed the Senate chamber and awaits a hearing in the House.

City project owners could owe when a change order goes un-issued under new bill

February 2, 2024

SB 6192 was amended last week in Committee after AWC and other stakeholders provided feedback on the proposal. It was updated to:

• Clarify that a contractor, subcontractor, or supplier has no right against a party that they are not in a written contract with.
• Exclude private residential projects of 12 units or less from the bill.
• Require contractors and subcontractors to issue change orders within 10 days of receipt of a change order from the owner, municipality, or upper-tier contractor.
• Require that the interest owed when a change order is not issued is the proportionate share between the owner, state, contractor, subcontractor, state, or municipality.
• Require a lower-tier subcontractor or supplier to request a change order from the upper-tier contractor 30 days after the completion of additional work and a request from the lower-tier subcontractor.

Please submit feedback to AWC on the bill’s potential impacts to your city.

SB 6192 passed out of the Senate Labor & Commerce Committee by a unanimous vote; it now awaits floor action.

New public works bill complicates rules for change orders, combines requirements for public and private projects

January 19, 2024

A new bill attempts to modify contracting requirements for making change orders on public and private construction projects.

Sponsored by Sens. Curtis King (R–Yakima) and Mark Mullet (D–Issaquah), SB 6192 updates public works law in the following ways:

• Contractors and subcontractors are authorized to make change orders on public works projects.
• Change orders can be made on work done by subcontractors and suppliers.
• Private construction projects are included in the statute.
• If a change order isn't issued within the required 30-day period, project owners, contractors, and subcontractors could also be required to pay interest on the amount due. Currently the requirement only applies to the state or municipality.
• A contractor or subcontractor must request a change order within 30 days of the additional work being done if a subcontractor or supplier requests it. If the subcontractor or contractor does so, they are not liable for paying interest on the unpaid dollars that may accrue.
• Violations of this section can be subject to civil action.

AWC is concerned by several provisions in the bill, including the addition of a penalty for not issuing a change order, extending authority to subcontractors to make change orders, and adding private construction projects to public works law.

Dates to remember

SB 6192 is scheduled for public hearing in the Senate Labor & Commerce Committee on Tuesday, January 23 at 10:30 am.