Retention Reform Bill Passed in Washington for Private Construction Projects

Victor K • February 15, 2023
A construction worker is standing on top of a wooden structure.

The Washington Bill 5528 which has been passed recently implements retainage reforms to implement the same retention limits that exist for public projects at the moment. The bill was sponsored by the Northwest Wall and Ceiling Contractors Association, the American Subcontractors Association of Washington and other industry trade groups. The percentage has been limited to 5% for the owner, contractor, subcontractor and any project.

 

The bill was passed with almost no opposition from both sides of the benches and currently awaits the Governor's endorsement which will come anytime soon. The new law will be enforced from 23 July 2023. It specifically focuses on constriction owners, contractors and subcontractors that work on private construction projects in Washington. This does not include residential construction (less than 12 single-family units) and public projects. For the ones affected by the new law, certain requirements will have to be met under the new bill.

 

Retention Limit: Five Percent

In private construction projects, the owner, contractor, or subcontractor has the option to hold back a portion of the contract price, known as retainage, which can be up to five percent of the completed work. This aligns with the retention limit observed in public works projects.

 

Interest Due

There will be a 1% interest rate charged to the contractor, subcontractor or property owner on the final due payment. The interest is bound to be paid after a month’s time from the completion date of the project and acceptance by the owner. Interest accumulates until the contractor or subcontractor receives the final payment. If the party fails to accept the work or provide notice of pending work to the contractor or subcontractor within the designated time-frame, the required interest will begin 30 days after the 15-day period has ended.

 

Retention Release Bond

However, if a contractor or subcontractor is not willing for a retainage, they can tender a retainage bond that will not exceed 5% of the money earned. When a contractor accepts a bond from a subcontractor, the contractor is obligated to accept bonds from subcontractors or suppliers who have funds withheld from the contractor. The funds must be released within 30 days of accepting the bond from the subcontractor (or supplier)

 

The purpose of this bill is to speed up the payment due to the contractor or subcontractors for the job. Issues will arise upon the fact that whether the work is complete or not, resulting in a delay in releasing funds. However, for the majority of the projects (especially the public sector), the bill will be favorable for small business owners and construction companies as their cash flow is not affected.


Understanding these bills and laws is not for everybody and that is why experts at United Seattle help in understanding laws for homeowners as well as subcontractors in Seattle and other cities of Washington State. Furthermore, one of the subcontractors plead his case during the bill hearing that his retention has not been released for over five years in a completed project. The legislation's main effect will be ensuring that contractors receive prompt payment.

USL2 Single-Source vs. Multi-Sub Bidding: Cost and Schedule Impact for GCs

By Victor K • September 22, 2026
General contractors or GC often look out for a complete package in their commercial subcontractor Seattle. The enormous task of combining multiple commercial construction subcontractor Seattle for a single project is a recipe for disaster and all GCs know this well. However, when it comes to selecting that one, the cost bid must not be the only criterion. The lowest bid might not have the overall expertise that is required for the project. GCs can bundle all the tasks and award them to one construction management subcontractor. However, the cost comparison between a single commercial subcontractor Seattle or multiple ones is not linear as lower coordination costs, fewer scope gaps, and better schedule control must also be taken into account. Total Installed Cost Vs. Trade Pricing In simple mathematical terms, the total project cost is just the amount the commercial subcontractor Seattle charges the GC. However, factors like Trade bid price, coordination cost, schedule exposure and change-order exposure must also be taken into account while pricing for a singular or multiple construction management subcontractors. The GC can simply request a quote for each task, generate competition and get the lower cost. However, the factors listed account for additional cost in this scenario as the GC needs to coordinate multiple contracts, schedules, site mobilizations, foremen, RFIs, submittals, invoices, inspections, and handoffs. A single-source commercial subcontractor Seattle like United Seattle may cost more than a competitive breakdown of subtasks but the additional factors are eliminated and long-term cost and time savings are achieved. Schedule Float Vs. Small Bid Difference Multiple tasks have multiple timelines which are often linear rather than parallel. This means that one commercial construction subcontractor Seattle needs to wait for the other one to complete their task before starting. An ideal example of this is flooring and drywall installation. One cannot be done before the first task is completed. A delay in the earlier task can lead to delays, extra cost and rising disputes, all of which have a price tag that the GC has to pay. Therefore, calculations are to be carried out before using multiple contractors rather than one. For example, if a bundled subcontractor costs $30,000 more than the combined lowest trade bids but gives the project team additional schedule flexibility and reduces the likelihood of a costly sequencing delay, that $30,000 should not be evaluated in isolation.

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Learn how to vet a commercial subcontractor before signing. Check licensing, bonding, insurance, safety, capacity, references, and project management.

Why General Contractors Are Consolidating Trades Under One Subcontractor

By Victor K • August 25, 2026
Managing a construction project is not just about outsourcing all the tasks; it involves much more than meets the eye. It is about being on the project from start to end and checking that all timelines are being followed by every commercial subcontractor Seattle. Scheduling and adhering to timelines are among the most challenging tasks, as it can result in loss of time and resources. The ideal method for a general contractor is to select a commercial construction subcontractor Seattle that provides all the required services. The result can be a more coordinated workflow, clearer accountability, and fewer opportunities for one trade to disrupt another.= The Challenge of Managing Multiple Trade Subcontractors Generally, a major construction job consists of multiple facets, resulting in the hiring of multiple commercial subcontractors in Seattle. These tasks include siding , roofing, flooring , interior design and paint jobs . Different construction management subcontractors bring different flavors to the table and managing them takes special skills on the part of the general contractor. These various companies also bring their own timelines which can result in slowing down the project as most of these tasks need to be completed in a series manner rather than in parallel. The main challenge is not the number of commercial subcontractor Seattle involved in the project but handling their cohesiveness. Every additional handoff creates another opportunity for something to fall through the cracks.
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