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WashingtonHB 24202025-2026 Regular SessionHouseWALLET

Increasing small works roster contract limits.

Sponsored By: Janice Zahn (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Higher caps for small works contracts

The law lets agencies use the small works roster for bigger jobs. Beginning June 11, 2026, projects up to $350,000 before sales tax qualify. The cap is $530,000 from Jan 1–Jun 30, 2027, and $560,000 from Jul 1, 2027–Jun 30, 2028. It is $590,000 from Jul 1, 2028–Jun 30, 2029, and $620,000 from Jul 1, 2029–Jun 30, 2030. Starting Jul 1, 2030, the cap is $650,000. All amounts exclude sales tax.

More direct awards for small contractors

The small works roster now includes direct contracting rules, and agencies may award directly to rostered contractors. For projects under $150,000 before sales tax, agencies are encouraged and may direct contract with small businesses before others. If six or more qualifying small businesses are on the roster, the agency must choose one and rotate awards across projects. If five or fewer qualify, the agency may direct contract with any roster contractor. Agencies must keep a plan to use small, minority, women, and veteran-owned firms, avoid favoring one firm, and notify these firms when using direct contracting.

No retainage or bond under $5,000

Small public works contracts under $5,000 have no retainage and no performance bond. Contracts over $5,000 still follow bond and retainage laws. An agency may reduce or waive retainage and must disclose this in the solicitation. When retainage is reduced or waived, the agency assumes liability for certain unpaid labor, supplier bills, and taxes.

Simpler small works bidding and transparency

Agencies may get written or electronic quotes for roster projects and must award to the lowest responsive, responsible bidder. Invitations must include a simple scope and list needed materials and equipment; detailed plans are not required. The Department of Enterprise Services posts standard bid and contract templates online. If an agency skips the small-business direct method, it cannot direct contract and must email all interested roster contractors to bid. After an award, the agency records the quotes and makes them public on request.

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Sponsors & Cosponsors

Sponsor

  • Janice Zahn

    Democratic • House

Cosponsors

  • Greg Nance

    Democratic • House

  • Julia Reed

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Sharon Tomiko Santos

    Democratic • House

  • Steve Tharinger

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 142 • No: 0

Senate vote • 3/5/2026

3rd Reading & Final Passage

Yes: 48 • No: 0 • Other: 1

House vote • 2/12/2026

3rd Reading & Final Passage

Yes: 94 • No: 0 • Other: 4

Actions Timeline

  1. Effective date 6/11/2026.

    3/18/2026House

  2. Chapter 97, 2026 Laws.

    3/18/2026House

  3. Governor signed.

    3/18/2026legislature

  4. Delivered to Governor.

    3/10/2026legislature

  5. President signed.

    3/9/2026legislature

  6. Speaker signed.

    3/6/2026legislature

  7. Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.

    3/5/2026House

  8. Rules suspended. Placed on Third Reading.

    3/5/2026House

  9. Placed on second reading consent calendar.

    2/27/2026House

  10. Passed to Rules Committee for second reading.

    2/25/2026House

  11. SGTE - Majority; do pass.

    2/24/2026House

  12. First reading, referred to State Government, Tribal Affairs & Elections.

    2/16/2026House

  13. Third reading, passed; yeas, 94; nays, 0; absent, 0; excused, 4.

    2/12/2026House

  14. Rules suspended. Placed on Third Reading.

    2/12/2026House

  15. 1st substitute bill substituted.

    2/12/2026House

  16. Rules Committee relieved of further consideration. Placed on second reading.

    2/11/2026House

  17. CB - Executive action taken by committee.

    2/4/2026House

  18. Referred to Rules 2 Review.

    2/4/2026House

  19. CB - Majority; 1st substitute bill be substituted, do pass.

    2/4/2026House

  20. First reading, referred to Capital Budget.

    1/13/2026House

  21. Introduced

    1/13/2026House

Bill Text

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