Wednesday, September 4, 2013

New Law on Affidavits of Wages Paid on Federally Funded Transportation Projects

In 2013, the Washington State Legislature approved  SHB 1420 that changes the timing for when public agencies must receive the "Affidavit of Wages Paid" from the contractor and all subcontractors on federally funded transportation public works projects.

Affidavit required prior to final acceptance:  Prior to the effective date of the new law on July 28, 2013, which modifies RCW 39.12.040, a public agency was required to obtain the Affidavit of Wages Paid following final acceptance of a public works project.  The new law adds the following language:
On a public works project where no retainage is withheld pursuant to RCW 60.28.011(1) (b), the affidavit of wages paid must be submitted to the state, county, municipality, or other public body charged with the duty of disbursing or authorizing disbursement of public funds prior to final acceptance of the public works project."
No retainage on federally funded transportation projects:  SHB 1420, in order for the state to be in compliance with U.S. Department of Transportation regulations, also requires that public agencies not withhold retainage on federally funded transportation projects.  The protected parties of retainage must instead be protected by the provisions of the Payment Bond.  Agencies will need to review their Payment Bond language on federally funded transportation projects to ensure that the state departments of Employment Security, Revenue, and Labor and Industries are protected under the terms of the bond.  Click here for a previous blog posting about the "no retainage on federally funded transportation projects" requirement.

Timing of Affidavit and Notice of Completion of Public Works Project:  As a reminder, the State Department of Labor and Industries recently make an administrative change requiring that all Affidavits of Wages Paid must be on file before the public agency sends the Notice of Completion of Public Works Project to L&I.  Click here to read my previous blog posting on this subject.

Mike Purdy's Public Contracting Blog 
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