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Panel hears bill to require licensed subcontractors on large public works bids; WSDOT flags fiscal risk
Summary
House Bill 1633 would require prime bidders on public works of $1 million or more to name subcontractors who already hold required licenses; staff said the change removes a substitution provision and the Capital Projects Advisory Review Board reporting requirement and that WSDOT estimates a $4 million cost over four years tied to rejected bids.
The Senate State Government, Tribal Affairs & Elections Committee took testimony on House Bill 1633 on March 18, a bill sponsored in the House by Representative Hill that would change prime-contractor subcontractor listing requirements on public works projects.
Under current law, for public works projects expected to cost $1,000,000 or more, prime bidders must list the subcontractors that will perform HVAC, plumbing and electrical work; if a listed subcontractor cannot obtain a license the prime contractor may substitute another subcontractor. The bill would require those named subcontractors to already hold the necessary license at the time they are listed, removing the substitution pathway and removing an outdated statutory reporting requirement to the Capital Projects Advisory Review Board.
Danielle Creech, committee staff, said the change makes licensure status a bid-defining element and that, "if a subcontractor is listed by the prime contract bidder but is not properly licensed, that renders the bid null and void." Committee staff reported a fiscal note that identified agency impacts: the Department of Transportation estimated about $4,000,000 over a four-year outlook tied to costs from rejected lowest bids and moving to second-lowest bidders, using an agency assumption of roughly $250,000 per rejected bid and about four such rejections per year.
Senators pressed staff for more detail about the WSDOT estimate. "That number seems way off," said Senator Wilson, who asked to discuss the fiscal assumptions offline. The prime sponsor was not present at the hearing; one remote testifier, Jake Dunthorn, attempted to join but was not connected during the allotted time. Committee staff recorded 18 proponents and 0 opponents on the public sign-in sheet and closed the hearing.
Committee staff said the bill also removes a November 2020 reporting requirement for the Capital Projects Advisory Review Board that staff described as outdated.
The committee closed the public hearing; no committee vote was taken during the session.
