This bill amends existing law (RCW 39.12.030) to require every public works contract to state an hourly minimum rate for each trade or occupation that is not less than the prevailing rate of wage and to require that laborers, workers, or mechanics be paid at least that hourly minimum. Except for projects excluded under RCW 39.04.151 and for work qualifying as "residential construction" under RCW 39.12.017, contracts must provide that the hourly minimum rate be adjusted annually, based on the contract date, so the wage is not less than the latest prevailing rate published by the Department of Labor and Industries. The act includes a legislative intent statement directing wage adjustments to follow prevailing rate adjustments published by the Department of Labor and Industries. The bill also requires the awarding agency to indicate when work meets the statute's definition of residential construction. If a contract uses residential construction rates and the work is later determined to be commercial and subject to commercial rates, the governmental entity that entered the contract must pay the difference between the residential rate stated in the contract and the actual commercial rate to the contractor, subcontractor, or other person performing the work. The act takes effect July 1, 2027. This is a modification of existing law that imposes new contract drafting requirements and creates a financial payment obligation in cases of later reclassification from residential to commercial (a procedural and payment-change to prevailing-wage contracting rules). The extracted text does not include the definition of "residential construction" in RCW 39.12.017, the text of RCW 39.04.151 describing the excluded projects, nor procedural details about how the Department of Labor and Industries will publish adjustments, how the annual adjustment is to be calculated or implemented, or enforcement and penalty provisions.

If enacted, public agencies that award construction contracts will have to include and guarantee an hourly minimum wage for each trade that is at least the prevailing wage, and for most contracts they must let that hourly wage be adjusted annually so it stays at the latest prevailing rate published by the Department of Labor and Industries. Awarding agencies must state on the contract if they consider the work to be "residential construction," and contracts for projects under RCW 39.04.151 or qualifying residential construction are excepted from the annual adjustment rule; the law takes effect July 1, 2027. Practically, contractors, subcontractors, and workers are likely to see stronger protection that contract wages will track prevailing wage increases, while state and local governments will face new budgeting and administrative duties to include and update those wage provisions and to pay any difference if a job is later reclassified from residential to commercial. The measure names L&I as the source of adjustments but leaves unclear key details such as the exact definition of residential construction, what RCW 39.04.151 covers, how the annual adjustment is calculated and published, and what enforcement or penalty processes will apply.