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Published on Friday, February 3, 2017

Lots of opposition to bill aimed at claims process in construction contracts

On Wednesday, February 1, AWC testified in opposition to HB 1574. Introduced by Reps. Jay Rodne (R-Snoqualmie) and Christine Kilduff (D-University Place), HB 1574 essentially overturns a 2002 State Supreme Court case (Mike M. Johnson, Inc. v. The County of Spokane). The case found that private contractors wishing to bring claims on state and municipal public works projects must fully comply with the claims procedures in the contract. This bill specifies that a party seeking to enforce the claims clause of the contract must show “material prejudice as a result of noncompliance.”

William Linton, an attorney with the law firm of Inslee Best in Bellevue, joined AWC is testifying against the bill. Mr. Linton provided excellent testimony detailing the many concerns cities have surrounding the legislation. In addition to city opposition, the Association of Counties, the Washington Public Ports Association, the Department of Transportation and Department of Enterprise Services were all on hand to voice their concerns with the legislation.

Currently HB 1574 is scheduled for Executive Session in the House Judiciary Committee February 9. AWC will continue to monitor its progress and weigh in when needed.

Categories: Infrastructure