Revised Code of Washington
Wash. Rev. Code § 39.08.010 (2026)
✓ current as of May 2026
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(1)(a) Whenever any board, council, commission, trustees, or body acting for the state or any county or municipality or any public body must contract with any person or corporation to do any work for the state, county, or municipality, or other public body, city, town, or district, such board, council, commission, trustees, or body must require the person or persons with whom such contract is made to make, execute, and deliver to such board, council, commission, trustees, or body a good and sufficient bond, with a surety company as surety, conditioned that such person or persons must:
(i) Faithfully perform all the provisions of such contract;
(ii) Pay all laborers, mechanics, and subcontractors and material suppliers, and all persons who supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work; and
(iii) Pay the taxes, increases, and penalties incurred on the project under Titles 50, 51, and 82 RCW on: (A) Projects referred to in RCW 60.28.011(1)(b); and/or (B) projects for which the bond is conditioned on the payment of such taxes, increases, and penalties.
(b) The bond, in cases of cities and towns, must be filed with the clerk or comptroller thereof, and any person or persons performing such services or furnishing material to any subcontractor has the same right under the provisions of such bond as if such work, services, or material was furnished to the original contractor.
(2) The provisions of RCW 39.08.010 through 39.08.030 do not apply to any money loaned or advanced to any such contractor, subcontractor, or other person in the performance of any such work.
(3) On contracts of one hundred fifty thousand dollars or less, at the option of the contractor or the general contractor/construction manager as defined in RCW 39.10.210, the respective public entity may, in lieu of the bond, retain ten percent of the contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the department of revenue, the employment security department, and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later. The recovery of unpaid wages and benefits must be the first priority for any actions filed against retainage held by a state agency or authorized local government.
(4) For contracts of one hundred fifty thousand dollars or less, the public entity may accept a full payment and performance bond from an individual surety or sureties.
(5) The surety must agree to be bound by the laws of the state of Washington and subjected to the jurisdiction of the state of Washington.
[ 2017 c 75 s 1; 2013 c 113 s 2. Prior: 2007 c 218 s 88; 2007 c 210 s 3; 1989 c 145 s 1; 1982 c 98 s 5; 1975 1st ex.s. c 278 s 23; 1967 c 70 s 2; 1915 c 28 s 1; 1909 c 207 s 1; RRS s 1159; prior: 1897 c 44 s 1; 1888 p 15 s 1.]
Notes:
Intent—Finding—2007 c 218: See note following RCW 41.08.020.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
State highway construction and maintenance, bond and surety requirements: Chapter 47.28 RCW.
Notes of Decisions
Cited in 40
cases (1 in the last 5 years), 1952–2024 · leading case: Better Fin. Solutions, Inc. v. Transtech Elec., Inc., 112 Wash. App. 697 (Wash. Ct. App. 2002).
Better Fin. Solutions, Inc. v. Transtech Elec., Inc., 112 Wash. App. 697 (Wash. Ct. App. 2002). “The issue presented is whether BFS’s role in the Kent School District (the School District) construction project entitled it to pursue claims against the contractor’s and subcontractor’s performance and payment bonds furnished pursuant to RCW 39.08.010 and under the public works…”
Better Fin. Solutions, Inc. v. Caicos Corp., 73 P.3d 424 (Wash. Ct. App. 2003). “As RCW 39.08.010 requires, Caicos posted a payment/performance bond for the contract amount.”
W.G. Clark Constr. Co. v. Pac. Nw. Reg'l Council of Carpenters, 322 P.3d 1207 (Wash. 2014). “RCW 39.08.010(1)(a). The bond ensures that “all laborers, mechanics, and subcontractors and material suppliers” on the project are paid for their work.”
Better Fin. Solutions, Inc. v. Transtech Elec., Inc., 51 P.3d 108 (Wash. Ct. App. 2002). “The issue presented is whether BFS's role in the Kent School District ("the School District") construction project entitled it to pursue *110 claims against the contractor's and subcontractor's performance and payment bonds furnished pursuant to RCW 39.08.010 and under the…”
Specialty Asphalt & Constr., LLC v. Lincoln Cnty., 421 P.3d 925 (Wash. 2018). “In the letter, Specialty conceded that the bond was statutorily required by RCW 39.08.010, but claimed that failure to require the bond does not void the contract.”
Better Fin. Solutions, Inc. v. Caicos Corp., 117 Wash. App. 899 (Wash. Ct. App. 2003). “As RCW 39.08.010 requires, Caicos posted a payment/performance bond for the contract amount.”
Farwest Steel Corp. v. Mainline Metal Works, Inc., 741 P.2d 58 (Wash. Ct. App. 1987). “Issue I Was Mainline a materialman for Hensel under Hensel's prime contract with the University of Washington where Mainline fabricated materials in its own plant in Oregon, but did no on-site labor, installation, or supervision, and the value of Mainline's contract was less…”
Levinson v. Linderman, 322 P.2d 863 (Wash. 1958). “On the same day, the contractor filed separate statutory performance bonds (RCW 39.08.010), on which the United States Fidelity and Guaranty Company was surety.”
LRS Elec. Controls, Inc. v. Hamre Const., Inc., 107 P.3d 721 (Wash. 2005). “RCW 39.08.010. In turn, the preclaim notice statute operates as a limitation on that right-protecting primary contractors from double liability on materials claims made by all manner of unknown third parties.”
Lobak Partitions, Inc. v. Atlas Constr. Co., 749 P.2d 716 (Wash. Ct. App. 1988). “RCW 39.08.010 requires a general contractor to make, execute and deliver to the appropriate governmental body a sufficient bond to ensure that all laborers, mechanics, subcontractors and materialmen are properly paid.”
IBEW v. Trig Elec. Const. Co., 13 P.3d 622 (Wash. 2000). “RCW 39.08.010. Relating thereto, RCW 60.28 requires the public body reserve a retainage fund from the money otherwise due the general contractor: Contracts for public improvements or work, other than for professional services, by the state, or any county, city, town, district,…”
Int'l Bhd. of Elec. Workers, Local Union No. 46 v. Trig Elec. Constr. Co., 142 Wash. 2d 431 (Wash. 2000). “RCW 39.08.010. Relating thereto, chapter 60.”
— Wash. Rev. Code § 39.08.010(1) — 1 case
State Constr. Inc v. Hartford Fire Ins. Co. (Wash. Ct. App. 2020).
— Wash. Rev. Code § 39.08.010(1)(a) — 4 cases
W.G. Clark Constr. Co. v. Pac. Nw. Reg'l Council of Carpenters, 322 P.3d 1207 (Wash. 2014). “RCW 39.08.010(1)(a). The bond ensures that “all laborers, mechanics, and subcontractors and material suppliers” on the project are paid for their work.”
State Constr. Inc v. Hartford Fire Ins. Co. (Wash. Ct. App. 2020).
City of Olympia v. Travelers Cas. & Sur. Co. of Am. (W.D. Wash. 2020).
— Wash. Rev. Code § 39.08.010(1)(a)(ii) — 1 case
W.G. Clark Constr. Co. v. Pac. Nw. Reg'l Council of Carpenters, 322 P.3d 1207 (Wash. 2014). “RCW 39.08.010(1)(a). The bond ensures that “all laborers, mechanics, and subcontractors and material suppliers” on the project are paid for their work.”
— Wash. Rev. Code § 39.08.010(1)(b) — 2 cases
W.G. Clark Constr. Co. v. Pac. Nw. Reg'l Council of Carpenters, 322 P.3d 1207 (Wash. 2014). “RCW 39.08.010(1)(a). The bond ensures that “all laborers, mechanics, and subcontractors and material suppliers” on the project are paid for their work.”
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