Washington construction liens and public works bonds: 90 days to record, eight months to sue, 30 days to claim on a bond

Washington contractors, subcontractors and suppliers have two sets of payment protections: the construction lien law in chapter 60.04 RCW for private work, and contract bonds and retainage under chapters 39.08 and 60.28 RCW for public work. The deadlines are short.

Notice of right to lien

Under RCW 60.04.031, anyone furnishing professional services, materials or equipment must give the owner written notice of the right to claim a lien. The notice can be given at any time, but it protects only what was supplied after the date 60 days before it was mailed by certified or registered mail or delivered. For new construction of a single-family home, the look-back is 10 days.

The notice is not required of people who contract directly with the owner, laborers claiming only for labor, or subcontractors who contract directly with the prime. Special rules apply to remodels of existing owner-occupied homes: a supplier or sub who does not contract directly with the owner must give notice, and its lien can be paid only from amounts the owner has not yet paid the prime when the notice is received.

Recording the lien

RCW 60.04.091 requires a claimant to record a notice of claim of lien in the county where the property is located no later than 90 days after it stopped furnishing labor, services, materials or equipment, or after the last date employee benefit contributions were due. The notice must give the claimant's name, phone and address; the first and last dates of work; the name of the person who owes the money; a description of the property; the owner's name, if known; and the principal amount. It must be signed under penalty of perjury and acknowledged.

Enforcing it

Under RCW 60.04.141, a lien does not bind the property for more than eight calendar months after recording unless the claimant files suit in superior court in that county within that time and serves the owner within 90 days of filing. If the action is not prosecuted to judgment within two years, the court may dismiss it.

Public works: the bond

For public works, RCW 39.08.010 requires public bodies to take a bond from the contractor, with a surety company, conditioned on performing the contract and paying laborers, subcontractors and suppliers. For state work, RCW 39.08.030 sets the bond at the full contract price; cities and some districts may set a lower amount, but not less than 25% of the contract price. On contracts of $150,000 or less, the contractor may choose to have the public body retain 10% of the contract amount instead of a bond.

To claim on the bond, a laborer, subcontractor or supplier must file a written notice of claim with the public body within 30 days after the work is completed and accepted.

Public works: retainage

RCW 60.28.011 requires public improvement contracts to hold back retainage of no more than 5% of the money earned, as a trust fund for claimants and for state taxes. Anyone who performed labor or furnished supplies has a lien on that retainage, but notice must be given within 45 days of completion of the contract work. Contracts funded in whole or in part with federal transportation money rely on the contract bond instead of retainage.

The contractor can ask that retainage be reduced to the value of the work remaining. Sixty days after completion of all contract work, the public body must release the retainage, subject to the prevailing wage law in chapter 39.12 RCW and the rest of chapter 60.28.

What to do

Suppliers should send the notice of right to lien at the start of every job. Everyone should calendar the 90-day recording deadline from their last day on the job. On public jobs, get a copy of the bond and watch for the acceptance date. This is a summary, not legal advice; see our Washington lien and retainage guide.