HB 1967, from Rep. Janice Zahn (D–Bellevue), modifies bond requirements for design-build public works projects, aiming to reduce costs for such projects.

Under the bill, a performance and payment bond is not required for the portion of the design-build contract that includes design services, preconstruction services, and other services that are not public works construction.

For background, under current law, some public works contracts may be awarded through an alternative contracting procedure in which the project owner is not required to award the lowest responsible bid. The design-build contracting method is one such alternative. Under design-build, the public project owner awards the contract to one firm that designs and builds a public facility. The firm is responsible for providing a performance and payment bond for the entire project, meaning for design and construction. The bill proponents argue that bonding for design services adds an unnecessary cost to a project.

If the bill is passed, under the design-build method, bonds must be not less than the dollar value of the contracted amount of the construction portion of the contract.

AWC supports the bill and welcomes the attempt to lower costs for public works projects, as cities and towns begin to adopt the design-build method for certain public works projects.

HB 1967 was passed out of the House Capital Budget Committee in time for the fiscal committee cutoff. It must be read and passed off the House floor by March 12 to have a chance at success.