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Bill would limit performance/payment bonds to construction portion of design–build projects
Summary
A technical change to bonding rules for design–build public works projects would require performance and payment bonds to cover only the construction portion of a contract, not the entire design+construction contract.
Substitute House Bill 19 67 would require that performance and payment bonds for design–build public works contracts be no less than the dollar value of the contracted construction portion of a contract, rather than the full contract value that includes design and preconstruction services.
Sponsor Representative Janice Zahn told the committee the change is a technical cleanup aligning design–build practice with the GCCM statute and reflected recommendations from a long-standing public-owners group. Zahn said public owners have been collecting bonds on full contract values even though design services are already subject to professional liability insurance and other contract protections.
Energy Northwest testified in support, saying the change would reduce costly bonding requirements for large projects — including advanced nuclear projects under development — while maintaining protection for construction-related risk. The committee asked technical questions about how design errors and omissions are covered; the sponsor said professional liability insurance and other contract instruments address design risk while the bond would protect construction performance.
No final committee action was recorded during the hearing.
