Wash. Rev. Code » Title 39 · Chapter 39.04
Revised Code of Washington

Wash. Rev. Code § 39.04.250 (2026)

Payments received on account of work performed by subcontractor—Disputed amounts—Remedies

✓ current as of May 2026
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(1) When payment is received by a contractor or subcontractor for work performed on a public work, the contractor or subcontractor shall pay to any subcontractor not later than ten days after the receipt of the payment, amounts allowed the contractor on account of the work performed by the subcontractor, to the extent of each subcontractor's interest therein.
(2) In the event of a good faith dispute over all or any portion of the amount due on a payment from the state or a municipality to the prime contractor, or from the prime contractor or subcontractor to a subcontractor, then the state or the municipality, or the prime contractor or subcontractor, may withhold no more than one hundred fifty percent of the disputed amount. Those not a party to a dispute are entitled to full and prompt payment of their portion of a draw, progress payment, final payment, or released retainage.
(3) In addition to all other remedies, any person from whom funds have been withheld in violation of this section shall be entitled to receive from the person wrongfully withholding the funds, for every month and portion thereof that payment including retainage is not made, interest at the highest rate allowed under RCW 19.52.025. In any action for the collection of funds wrongfully withheld, the prevailing party shall be entitled to costs of suit and reasonable attorneys' fees.
[ 1992 c 223 s 5.]

Notes:

Effective date—1992 c 223: See note following RCW 39.76.011.
Waiver of rights, construction—Application—1992 c 223: See RCW 39.04.900 and 39.04.901.
Notes of Decisions
Cited in 2 cases, 2018–2020 · leading case: Scarsella Bros., Inc., App/cr-resp v. Flatiron Constructors Inc., Resp/cr-app (Wash. Ct. App. 2020).
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Scarsella Bros., Inc., App/cr-resp v. Flatiron Constructors Inc., Resp/cr-app (Wash. Ct. App. 2020). · cites it 17× “where both parties prevail on major issues, neither is 30 Flatiron argues the absence of a finding on the issue of retainage is a presumptive negative finding on that issue under Taplett v.”
Kenco Constr., Inc., Resp v. Porter Bros. Constr., Inc., Et Ano, Apps (Wash. Ct. App. 2018). “030 and RCW 39.04.250 provide for an award of "costs," in addition to attorney fees, we are not convinced that this encompasses expert fees.”
— Wash. Rev. Code § 39.04.250(3) — 1 case
Scarsella Bros., Inc., App/cr-resp v. Flatiron Constructors Inc., Resp/cr-app (Wash. Ct. App. 2020). “where both parties prevail on major issues, neither is 30 Flatiron argues the absence of a finding on the issue of retainage is a presumptive negative finding on that issue under Taplett v.”
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