This bill amends existing public contracting and prompt payment law by changing payment timing, notice, interest, and change order procedures. It amends RCW 39.04.250 and RCW 39.76.011 and repeals RCW 39.04.360. Key procedural changes: state and municipal public bodies must pay on public works contracts within 30 days of receipt of a properly completed invoice; contract documents must include instructions for completing invoices, payment cutoff and due dates, review timelines, notice procedures, payment timelines and release schedules (including retainage) that must flow down to all subcontractor contracts; contractors and subcontractors who receive payment must pay their subcontractors allowed amounts within 10 days of receipt. The bill changes remedies and interest for late payments and withheld amounts. Most public bodies must pay interest of 1% per month (at least $1 per month) on amounts not timely paid. A public body must give written notice within eight working days if it withholds payment for unsatisfactory performance, specifying reasons and remedial actions; noncompliant notices or failures to pay withheld amounts on time trigger interest accrual. A prime contractor may withhold subcontractor payment only if the subcontract permits it, but must notify the subcontractor and the contracting officer and pay the subcontractor within eight working days after remedial actions are completed, or else pay interest. Parties wrongfully withholding funds must pay 1% per month interest and prevailing parties in collection actions may recover costs and reasonable attorneys’ fees. Aggrieved parties may bring civil actions for violations. The bill also sets change order deadlines and interest for unpaid additional work: owners must issue change orders within 30 days after satisfactory completion of additional work and receipt of a contractor’s request (with a listed exception for private residential projects of 12 units or less); upper-tier contractors must issue change orders to impacted lower-tier subcontractors within 10 days; contractors and subcontractors must request change orders within 30 days of commencement of the additional work to avoid liability for accrued interest. Definitions provided include “additional work,” when a payment is considered made, and when an invoice is considered received. The text references other statutes (RCW 39.76.020 and RCW 19.52.025) and cites implementation of capital projects advisory review board prompt pay recommendations, but those referenced provisions and the repealed RCW 39.04.360 text are not included in the provided facts. Bill ID: Substitute Senate Bill 5176 (S-0883.1), 69th Legislature, 2025 Regular Session.

If enacted, public owners and agencies will have to pay properly completed invoices much faster (generally within 30 days) and face a 1% per month interest penalty (at least $1) when they don’t, while prime contractors must forward payments to subcontractors within 10 days or risk interest and legal fees. Contracts will need clear invoice instructions, payment cutoff and release schedules, and faster change‑order timelines—owners must issue change orders within 30 days after additional work is done and contractors must pass change orders to lower tiers within 10 days—otherwise interest accrues on unpaid amounts. Subcontractors and suppliers are likely to see steadier, quicker cash flow and clearer remedies; public bodies and prime contractors will face higher short‑term cash demands, more administrative deadlines and potential interest or attorney‑fee exposure if they miss notice, payment, or change‑order timelines. Some details that could affect how this works in practice are missing from the provided text: the bill references other statutes (RCW 39.76.020 and RCW 19.52.025) and repeals a prior payment statute without showing that language, so exceptions or interactions with existing rules aren’t clear from the facts given.