With the passage of HB 2420 raising the cost limit up to which the state or local governments can use a small works roster to award public works projects, cities should begin preparing to implement a series of increases that kick in over the next four years, starting in January.
The legislation, which goes into effect on June 11, 2026, increases the current $350,000 cap to the following amounts according to the following schedule:
- $530,000 beginning January 1, 2027
- $560,000 beginning July 1, 2027
- $590,000 beginning July 1, 2028
- $620,000 beginning July 1, 2029
- $650,000 beginning July 1, 2030
As originally introduced, the bill, sponsored by Rep. Janice Zahn (D–Bellevue), would have made the first increase effective in July of this year. However, lawmakers delayed that to January 1, 2027, after the Department of Labor and Industries indicated that it would need the additional time to update its systems to accommodate the initial change.
Increase to small works roster cost cap heads to Governor for signature
March 6, 2026
AWC is pleased to report that HB 2420 passed the Senate by a unanimous vote. The Senate did not amend the bill, so there is no need for concurrence with the House. The bill’s next stop is the Governor’s desk for final signature.
If signed, the bill goes into effect this year; however, the first increase to the small works roster threshold will take place January 1, 2027, when it will jump from $350,000 to $530,000.
AWC thanks all the cities and other interested stakeholders who contacted legislators to express their support for the bill.
Keep supporting small works roster legislation as it moves through opposite chamber
February 20, 2026
HB 2420, establishing annual increases to the small works roster cost threshold, passed out of the House by a unanimous vote well before the February 17 house of origin deadline. It received no amendments on the floor.
AWC continues to support the bill and encourages cities to indicate their support to legislators before the next legislative cutoff on February 25.
Date to remember
HB 2420 was heard in the Senate State Government, Tribal Affairs & Elections Committee on February 20 and is scheduled for a vote in that committee on February 24 at 1:30 pm.
Change to effective date a small setback for small works roster cost cap increase
February 6, 2026
In response to a request from the Department of Labor and Industries (L&I), HB 2420, establishing annual increases to the small works roster cost threshold, was amended in committee to delay the first increase of the threshold until calendar year 2027.
Now, instead of increasing the cost cap from the current amount of $350,000 to $500,000 beginning July 1, 2026, the threshold will increase to $530,000 beginning January 1, 2027. L&I sought the delay to give the department more time to make necessary internal adjustments to prepare for the new annual increases.
AWC worked to ensure the shortest delay possible and continues to support the bill.
HB 2420 passed out of committee on February 4 and now awaits a vote on the House floor.
Support legislation to increase cost cap on cities’ small public works project awards
January 23, 2026
Cities could use a small works roster to award higher-costing public works projects under a new bill that increases the current limit to align procurement regulation with present-day costs and labor challenges.
HB 2420, sponsored by Rep. Janice Zahn (D–Bellevue), brings the cost threshold for use of a small works roster to award public works contracts up to $500,000, with a further increase of $30,000 each year for five years. The increases to the current $350,000 limit occur according to the following schedule:
- $530,000 beginning July 1, 2026
- $560,000 beginning July 1, 2027
- $590,000 beginning July 1, 2028
- $620,000 beginning July 1, 2029
- $650,000 beginning July 1, 2030
Per statute, the Capital Projects Advisory Review Board (CPARB) is charged with reviewing construction cost escalation data for Washington state and making recommendations to the Legislature on adjustments to the small works roster contracting thresholds, beginning in 2025 and every five years thereafter. HB 2420 is the result of that work.
AWC staff and city representatives participated in an engaged, productive stakeholder process in the 2025 legislative interim. We thank all those involved in that process for their hard work and commitment to a spirit of cooperation and compromise.
AWC supports the bill and encourages cities to indicate their support as well at an upcoming public hearing.
Date to remember
HB 2420 is scheduled for a public hearing in the House Capital Budget Committee on Thursday, January 29, at 1:30 pm.