Small works roster limits

AN ACT Relating to increasing small works roster contract limits; 1
and amending RCW 39.04.152; and providing an effective date.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 39.04.152 and 2023 c 395 s 15 are each amended to 4
read as follows: 5
(1)(a) This section provides uniform small works roster 6
provisions to award contracts for construction, building, renovation, 7
remodeling, alteration, repair, or improvement of real property that 8
may be used by state agencies and by any local government that is 9
expressly authorized to use these provisions. These provisions may be 10
used in lieu of other procedures to award contracts for such work 11
with an estimated cost , not including sales tax, of (($350,000 or 12
less excluding state sales tax)):13
(i) $530,000 or less from the effective date of this section to 14
June 30, 2027;15
(ii) $560,000 or less from July 1, 2027, to June 30, 2028;16
(iii) $590,000 or less from July 1, 2028, to June 30, 2029;17
(iv) $620,000 or less from July 1, 2029, to June 30, 2030; and18
(v) $650,000 or less beginning July 1, 2030. 19
(b) The small works roster process includes the direct contract 20
provisions authorized under this section and any local government 21
H-2725.2
HOUSE BILL 2420
State of Washington 69th Legislature 2026 Regular Session
By Representatives Zahn, Tharinger, Parshley, Santos, Nance, and Reed
Read first time 01/13/26. Referred to Committee on Capital Budget.
p. 1 HB 2420
authorized to award contracts using the small works roster process 1
under this section may award contracts using the direct contract 2
provisions of this section. State agencies and authorized local 3
governments using small works rosters must establish procedures for 4
implementing chapter 395, Laws of 2023. 5
(2) State agencies and authorized local governments must document 6
good faith efforts annually implementing subsections (6) and (7) of 7
this section. 8
(3) Invitations for bids or direct contract negotiation must 9
include, at a minimum, an estimate for the scope of work including 10
the nature of the work to be performed as well as the materials and 11
equipment to be furnished. Detailed plans and specifications need not 12
be included. 13
(4) The department of enterprise services must develop and make 14
available on its public-facing website templates for bid invitations, 15
bidding, and contracting that may be used by state agencies, 16
authorized local governments, and contractors. 17
(a)(i) For small works roster projects ((with an estimated cost 18
less than $350,000, not including sales tax )), state agencies and 19
authorized local governments may contract by securing written or 20
electronic quotations to assure that a competitive price is 21
established and to award contracts to the responsible bidder with the 22
lowest responsive bid. 23
(ii) A state agency or authorized local government contracting 24
through a small works roster shall invite bids notifying all 25
contractors on the applicable roster that have indicated interest in 26
performing work in the applicable geographical area.27
(b) For small public works projects with an estimated cost less 28
than $150,000, not including sales tax, to increase the utilization 29
of small businesses, state agencies and local governments are 30
encouraged to and may direct contract with small businesses as 31
defined in chapter 395, Laws of 2023, before direct contracting with 32
other contractors on the appropriate small works roster without a 33
competitive process as follows: 34
(i) If there are six or more contractors meeting the definition 35
of small business on the applicable roster, the state agency or 36
authorized local government must direct contract with one of those 37
small businesses on the applicable roster that have indicated 38
interest in performing work in the applicable geographical area. A 39
state agency or authorized local government utilizing direct 40
p. 2 HB 2420
contracting pursuant to this subsection must rotate through the 1
contractors on the appropriate small works roster and must, when 2
qualified contractors are available from the roster who may perform 3
the work or deliver the services within the budget described in the 4
notice or request for proposals, utilize different contractors on 5
different projects. 6
(ii) If there are five or less contractors meeting the definition 7
of small business on the applicable roster, the state agency or 8
authorized local government may direct contract with any contractor 9
on the applicable roster. 10
(iii) The state agency or authorized local government must notify 11
small, minority, women, or veteran-owned businesses on the applicable 12
roster when direct contracting is utilized. 13
(iv) It is the intent of the legislature to increase utilization 14
of small, minority, women, and veteran-owned businesses. Each state 15
agency and authorized local government shall establish a small, 16
minority, women, and veteran-owned business utilization plan. A state 17
agency or authorized local government engaging in direct contracting 18
may not favor certain contractors on the appropriate small works 19
roster by repeatedly awarding contracts without documented attempts 20
to direct contract with other contractors on the appropriate small 21
works roster. 22
(v) If the state agency or authorized local government elects not 23
to use the methods outlined in this subsection, it may not use direct 24
contracting and must invite bids by electronically notifying all 25
contractors on the applicable roster that have indicated interest in 26
performing work in the applicable geographical area as described in 27
this section. 28
(5) For small public works contracts under $5,000, there is no 29
requirement for retainage or performance bonds. Small public works 30
contracts valued at more than $5,000 shall be subject to performance 31
bond requirements set forth in chapter 39.08 RCW and retainage 32
requirements set forth in chapter 60.28 RCW, provided, however, that 33
the awarding state agency or authorized local government may reduce 34
or waive retainage requirements set forth in RCW 60.28.011(1)(a), 35
thereby assuming the liability for the contractor's nonpayment of: 36
(a) Laborers, mechanics, subcontractors, materialpersons, and 37
suppliers; and (b) taxes, increases, and penalties pursuant to Titles 38
50, 51, and 82 RCW that may be due from the contractor for the 39
project. Any such waiver will not affect the rights of the state 40
p. 3 HB 2420
agency or local government to recover against the contractor for any 1
payments made on the contractor's behalf. For small public works 2
contracts awarded through a bid solicitation, notice of any retainage 3
reduction or waiver must be provided in bid solicitations.4
(6) After an award is made, the bid quotations obtained shall be 5
recorded, publicly available, and available by request.6
(7) Annually, a state agency or authorized local government must 7
publish a list of small works contracts awarded and contractors 8
contacted for direct negotiation pursuant to RCW 39.04.200.9
NEW SECTION. Sec. 2. This act takes effect July 1, 2026.10
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