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2009 Legislation Affecting Washington State Public Works Contracting
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2009 Legislation Affecting Washington State Public Works Contracting

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Training presentation on 2009 legislation passed by the Washington State Legislature affecting Public Works contracting.

Training presentation on 2009 legislation passed by the Washington State Legislature affecting Public Works contracting.

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    2009 Legislation Affecting Washington State Public Works Contracting 2009 Legislation Affecting Washington State Public Works Contracting Presentation Transcript

    • Michael E. Purdy Contracts Manager University of Washington John W. Carpita Public Works Consultant Municipal Research and Services Center June, 2009
    • I have come to the conclusion that the making of laws is like the making of sausages—the less you know about the process the more you respect the result. [John Godfrey Saxe in The Daily Cleveland Herald, Mar. 29, 1869] quot;No man's life, liberty, or property are safe while the legislature is in session.quot; [Often attributed to Mark Twain]
    •  Terminology Effective Date of  HB = House Bill Legislation  SHB = Substitute House Bill July 26, 2009  ESHB = Engrossed Substitute House Bill  SB = Senate Bill  SSB = Substitute Senate Bill  ESSB = Engrossed Substitute Senate Bill  Look up Bills  http://apps.leg.wa.gov/billinfo/ 6/4/2009
    •  Bid and Purchase Limits  HB 1196 – Increasing the Dollar Limit For Small Works Roster Projects  ESHB 1847 – Bid Limits  SB 5228 – Construction Projects by County Forces  Apprenticeship  SB 5873 – Apprenticeship Utilization  Bidder Responsibility  Debarment  Prevailing Wages  SB 5903 – Public Works Contracts for Residential Construction  SSB 5904 – Independent Contractor 4 4
    •  Contracting  HB 1195 – Payment of Undisputed Amounts on Change Orders  Retainage  HB 1199 – Retainage of Funds on Public Works Projects  HB 1555 – Underground Economy in the Construction Industry  Alternative Public Works Contracting  HB 1197 – Alternative Public Works Contracting  Bills of Note That Didn’t Pass  Latecomer Agreements  EHB 1513 – Allowing Municipalities to Participate in Financing the Development of Water or Sewer Facility Projects  Sales Taxes  SB 6173 – Improving Sales Tax Compliance 5 5
    • HB 1196 – Small Works Roster  Upper limit for a small public works roster process is raised from $200,000 to $300,000  If you choose to solicit bids from less than all the appropriate contractors on the roster, then the amount requiring notification of all contractors on the roster is changed from between $100,000 and $200,000 to between $150,000 and $300,000.  Amends RCW 39.04.155 (all authorized agencies) and RCW 53.08.120 (Ports) 6 6
    • ESHB 1847 – Bid Limits Bid Limits Cities and Towns Single Craft Multiple Crafts Old New Old New First Class Cities Over 150,000 $35,000 $45,000 $70,000 $90,000 First Class City Under 150,000 $30,000 ---- $50,000 ---- Code Citiesy Over 20,000 $30,000 $40,000 $50,000 $65,000 Code City Under 20,000 $30,000 ---- $45,000 ---- 2nd Class Cities & Towns $30,000 $40,000 $45,000 $65,000 Single Craft Bid Limits Multiple Craft Bid Limits Counties Old New Old New Over 1 M 400 K w/ Purchasing $25,000 $45,000 $70,000 $95,000 Department Over 400 K w/o Purchasing ---- $40,000 ---- $40,000 Department Under 1 M 400 K w/ Purchasing $10,000 $40,000 $10,000 $40,000 Department Under 1 M 400 K w/o Purchasing $10,000 $40,000 $10,000 $40,000 Department 7 7
    • ESHB 1847 – Bid Limits Bid Limits Other Agencies Old Single Craft New Multiple Crafts Old New Water & Sewer Districts (Title 57 RCW) $10,000 $20,000 $10,000 $20,000 Metropolitan Park Districts (Ch. 35.61 RCW) $5,000 $20,000 $5,000 $20,000 Fire Districts (Title 52 RCW) $2,500 $20,000 $2,500 $20,000 Public Hospital Districts (Ch. 70.44 RCW) $50,000 $75,000 $50,000 $75,000 Housing Authorities (Ch. 35.82 RCW) ?? ?? ?? ?? School Districts (RCW 28A.335.190) $40,000 $40,000 $40,000 $40,000 Higher Education (RCW 28B.10.3.50) $35,000 $45,000 $55,000 $90,000 Port Districts (Title 53 RCW) $200,000, except note RCW 53.08.135 Public Utility Districts (Title 54 RCW) See RCW 54.04.070 & 54.04.082 8 8
    • Bid Limits for Selected Authorized Agencies (Includes ESHB 1847 Changes, Effective July 26, 2009) Bid Limits Cities and Towns Single Craft Multiple Crafts First Class City $45,000 (1) $90,000 (1) Code City $40,000 $65,000 2nd Class City & Towns $40,000 $65,000 Counties Over 400 K w/ Purchasing $45,000 (2,3) $90,000 (2,3) Department (RCW 36.32.235) Over 400 K w/o Purchasing $40,000 (3,4) $40,000 (3,4) Department (RCW 36.32.240,250) Under 400 K w/ Purchasing $40,000 (3,4) $40,000 (3,4) Department (RCW 36.32.240,250) Under 400 K w/o Purchasing $40,000 (3,4) $40,000 (3,4) Department (RCW 36.32.250) Water & Sewer Districts (Title 57 RCW) $20,000 $20,000 Metropolitan Park Districts (Ch. 35.61 RCW) $20,000 $20,000 Fire Districts (Title 52 RCW) $20,000 $20,000 Port Districts (Title 53 RCW) $200,000, except note RCW 53.08.135 Public Utility Districts (Title 54 RCW) See RCW 54.04.070 & 54.04.082 Public Hospital Districts (Ch. 70.44 RCW) $75,000 $75,000 Housing Authorities (Ch. 35.82 RCW) ?? ?? School Districts (RCW 28A.335.190) $40,000 $40,000 1) RCW 35.22.620(2) further limits the dollar value of public works performed by city employees or day labor to ten (10) percent of the total public works construction budget in a given budget period. Work performed within a city by county employees under an interlocal agreement is to be included in this limit. 2) Also subject to annual limit of 10% of public works construction budget (RCW 36.32.235). 3) Also subject to county road force limitations for road funds under RCW 36.77.065. 4) Not a bid limit, per se, but is a limit below which informal contracting procedures may be used. 6/4/2009 9
    • SB 5228 - Construction Projects by County Forces  The term quot;day laborquot; is removed from the statutes and replaced with quot;county forces” Multiplied by the Basic Dollar Previous Year's Motor Volume Total Dollar Volume County Population Vehicle Fuel Tax County Forces County Forces Construction Distribution Factor Construction (DF) Under 30,000 $ 0.7 M DF $ 0.7 M + (DF x $ 0.7 M) 30,000 to 150,000 $ 1.15 M DF $ 1.15 M +(DF x $ 1.15 M) 150,000 to 400,000 $ 1.75 M DF $ 1.75 M +(DF x $ 1.75 M) Over 400,000 $ 3.25 M DF $ 3.25 M + (DF x $ 3.25 M) 10 10
    • SB 5873 – Apprenticeship Utilization  Topics addressed: 1. Apprenticeship Utilization for higher education 2. Bidder Responsibility 3. Debarment  RCWs affected: 1. 39.04.320 (apprenticeship) 2. 39.04.350 (bidder responsibility) 3. 39.12.055 (debarment) 11 11
    • SB 5873 – Apprenticeship Utilization  RCW 39.04.320  Agencies Covered by Apprenticeship Requirements: • School districts • WSDOT • State Department of General Administration • Four-year institutions of higher education • (added by SB 5873) 12 12
    • SB 5873 – Apprenticeship Utilization • Date: Effective for projects bid after Jan. 1, 2010 • Registration: Apprentices must be registered in a state- approved apprenticeship program • Percentage requirements for use of apprentices Estimated to cost Bid after Percentage Required $3 million January 1, 2010 10% $2 million January 1, 2011 12% $1 million January 1, 2012 15% 13 13
    • SB 5873 – Apprenticeship Utilization • RCW 39.04.350 • Mandatory Bidder Responsibility Criteria • Adds apprenticeship compliance as mandatory criteria: 1. Registered contractor  At time of bid submittal (RCW 18.27.020) 2. Current UBI number 3. Industrial insurance coverage 4. Employment security department number 5. State excise tax registration number 6. Not disqualified from bidding 7. Not in violation of apprenticeship requirements 14 14
    • SB 5873 – Apprenticeship Utilization • RCW 39.04.350  Applicability: Mandatory Bidder Responsibility Criteria for violation of apprenticeship requirements applies only:  a) Agencies: To the following agencies 1. Four-year institutions of higher education 2. School districts 3. WSDOT 4. State Department of General Administration  b) With Requirements: And when apprenticeship requirements apply to a project 15 15
    • SB 5873 – Apprenticeship Utilization RCW 39.04.350  Violation of Apprenticeship requirements: 1. Working apprentices out of ratio 2. Working apprentices without appropriate supervision 3. Working apprentices outside their approved work processes (scope and standards)  Non-compliance:  By State Apprenticeship and Training Council  For 1 year immediately preceding the date of the bid solicitation 16 16
    • SB 5873 – Apprenticeship Utilization RCW 39.12.055 Debarment  Apprenticeship Violations: Adds apprenticeship violations to list of reasons for “debarment” (not being allowed to bid)  Working apprentices out of ratio  Working apprentices without appropriate supervision  Working apprentices outside their approved work processes  Applicability: Applies to public works projects by all public agencies  Not just those subject to RCW 39.04.320 (apprenticeship)  Not part of bidder responsibility that references debarment under RCW 39.04.065 (3) for prevailing wage violations 17 17
    • SB 5873 – Apprenticeship Utilization • RCW 39.12.055 • Debarment  “A contractor shall not be allowed to bid on any public works contract for one year from the date of a final determination that the contractor has committed any combination of two of the following violations or infractions within a five-year period: 1. Workers Compensation: Violated RCW 51.48.020(1) or 51.48.103; 2. Contractor Registration: Committed an infraction or violation under chapter 18.27 RCW for performing work as an unregistered contractor; or 3. Apprenticeship: Determined to be out of compliance by the Washington state apprenticeship and training council for working apprentices out of ratio, without appropriate supervision, or outside their approved work processes as outlined in their standards of apprenticeship under chapter 49.04 RCW.” 18 18
    • SB 5873 – Apprenticeship Utilization RCW 39.12.055 Debarment  Outstanding Issues: 1. Information not readily available for violations:  Workers Compensation  Contractors Registration 2. Labor & Industries should be developing website for access on Apprenticeship violations 19 19
    • 1. SB 5903  Residential Construction Wage Rates 2. SSB 5904  Defining Independent Contractors 20 20
    • SB 5903 – Residential Wages  What is residential construction?  quot;Residential constructionquot; means construction, alteration, repair, improvement, or maintenance of single family dwellings, duplexes, apartments, condominiums, and other residential structures not to exceed four stories in height, including basement, when used solely as permanent residences. It does not include the utilities construction (water and sewer lines), or work on streets, or work on other structures (e.g., for recreation and business.) WAC 296-127-010 (9) 21 21
    • SB 5903 – Residential Wages  Amends RCW 39.12.030  Specs: Public Works specs must: 1. Include applicable prevailing wage rates 2. Require that workers be paid not less than the prevailing wage rate 3. If work is subject to residential prevailing wage rates, include that information 22 22
    • SB 5903 – Residential Wages  SB 5903 addresses the following: 1. Residential wage rates are to be listed in the contract documents 2. If it is later determined that commercial wages apply, the public agency must pay the difference 23 23
    • SSB 5904 – Independent Contractor  Problem:  Misclassification of workers as independent contractors instead of employees  Example: Carpet installation  Abuse:  By misclassifying workers as independent contractors, contractors avoid paying:  Workers Compensation  Prevailing Wages  Solution:  Provide standards for when an individual is an independent contractor and not considered a worker subject to prevailing wages 24 24
    • SSB 5904 – Independent Contractor  Summary:  If an individual has various characteristics typical of a business then he/she may be considered a business (independent contractor) and not a worker subject to prevailing wages  Impact on Public Agencies:  L&I enforcement issue  Contract L&I if you have concerns  Awareness as part of monitoring prevailing wages 25 25
    • SSB 5904 – Independent Contractor  Not considered to be a worker (and therefore considered a independent contractor) when: 1. Independence: Individual is free from control or direction in performing the work – A worker receives direction; an independent contractor receives general direction with respect to compliance with specifications – Are there multiple independent contractors working under one contractor or subcontractor, or should they be workers subject to prevailing wages? – Does the worker provide their own tools or does employer provide them? 26 26
    • SSB 5904 – Independent Contractor  Not considered to be a worker (and therefore considered a independent contractor) when: 2. What’s Normal? Work performed by individual is:  Outside usual course of business for the contractor the individual performs services for, or  Outside of all places of business of the enterprise the individual performs services for, or  Individual is responsible for costs of principal place of business from which the service is performed. 27 27
    • SSB 5904 – Independent Contractor  Not considered to be a worker (and therefore considered a business) when: 3. Separate Business: Individual:  “Is customarily engaged in an independently established trade…of the same nature” as the services provided, or  Has a principal place of business that is eligible for a business deduction for federal income tax purposes 4. Tax Filings: Individual is responsible for filing a schedule of expenses with the IRS for the type of business individual is conducting. 5. State Registrations: Individual is registered with Department of Revenue, has UBI number, and has active and valid accounts with other applicable state agencies. 28 28
    • SSB 5904 – Independent Contractor  Not considered to be a worker (and therefore considered a business) when: 6. Separate Books: The individual maintains a separate set of books or records reflecting income and expenses of the business which the individual is conducting. 7. Registered as a Contractor: Nature of work performed requires registration as a contractor and the individual is registered. 29 29
    • HB 1195 – Payment on Change Order Work  Problem being addressed:  Agencies that do not execute change orders (or pay on change order work) until the end of the project  New Requirement in RCW 39.04:  No later than 30 days after satisfactory completion of  Any additional work, or  Portion of additional work  Agency shall issue a change order for the full dollar amount of the work not in dispute  If such change order not issued within 30 days  Interest accrues on amount satisfactorily completed and not in dispute  Additional work “is work beyond the scope defined in the contract.” Does not sanction cardinal changes. 30 30
    • HB 1195 – Payment on Change Order Work  Scenario:  Additional work performed  Through field order authorization  Based on unit prices  All work satisfactorily completed  How much is owed  Owner and Contractor agree on $85,000  Owner and Contractor in dispute about value of remaining portion of work  Issue change order for the $85,000  Resolve the disputed amount  Who defines “satisfactorily completed”?  Owner – normally don’t pay if work not satisfactory  Both parties must agree on amount or it’s in dispute 31 31
    • HB 1199 – Retainage Clean-up  Repeals various laws that relate to public works contracts entered into prior to September 1, 1992  Changes references in other laws Old Laws Repealed Current Law Subject RCW 60.28.010 RCW 60.28.011 Retainage RCW 60.28.020 RCW 60.28.021 Retainage RCW 60.28.050 RCW 60.28.051 Retainage RCW 39.76.010 RCW 39.76.011 Prompt Payment 32 32
    • SHB 1555 - Underground Economy 1. Purpose of Retainage 2. Notification to State Agencies 3. Obtaining State Releases 4. Priority of Claims Against Retainage 5. Outstanding Issues 6. Business Licenses & Contractor Registration 33 33
    • SHB 1555 - Underground Economy Purpose of Retainage Current Law New Law Prevailing Wage workers Prevailing Wage workers Subcontractors and Suppliers Subcontractors and Suppliers Department of Revenue Department of Revenue Employment Security Dept. Dept. of Labor & Industries 34 34
    • SHB 1555 - Underground Economy Notification to State Current Law New Law Department of Revenue Department of Revenue Employment Security Dept. Employment Security Dept. - Through Revenue Dept. of Labor & Industries 35 35
    • SHB 1555 - Underground Economy Obtaining State Releases Current Law New Law Department of Revenue Department of Revenue Employment Security Dept. Employment Security Dept. - By practice Dept. of Labor & Industries Dept. of Labor & Industries - By practice - Employer Liability Certificate printed online by awarding agency or contractor 36 36
    • SHB 1555 - Underground Economy Revised Priority of Claims # Current law New law 1 Workers not paid prevailing Workers not paid prevailing wages wages 2 Dept. of Revenue – taxes due on Dept. of Revenue – taxes due on public works project public works project 3 Subcontractors and suppliers Dept. of Revenue – taxes due on other projects 4 Other taxes due – Dept of ESD and L&I for taxes due on Revenue for other projects, ESD, public works project L&I, IRS, etc. 5 The Owner Subcontractors and suppliers 6 Other taxes due (ESD, L&I for taxes due on other projects; other taxes) 37 7 The Owner 37
    • SHB 1555 - Underground Economy Outstanding Issues 1. L&I Release: L&I doesn’t issue a release certificate, but new law requires it  L&I, ESD, and Revenue are meeting to coordinate actions regarding notification and certificates 2. Access to Retainage: L&I and ESD have long claimed to be able to collect from public agencies for unpaid premiums directly and not from retainage  RCW 51.12.050 (Workers Compensation)  RCW 50.24.130 (Unemployment Compensation) 3. Subcontractor Concerns: Subcontractors and Suppliers may push for amended legislation 38 38
    • SHB 1555 - Underground Economy Outstanding Issues 4. Conflict between $35,000 vs. $20,000  Dept. of Revenue Threshold for Priority of Claims:  Only for Revenue claims on this project, not other projects Current Law HB 1199 SHB 1555 $20,000 $35,000* $20,000 *Clean-up legislation of what should have been addressed in 2007 39 39
    • SHB 1555 - Underground Economy Outstanding Issues 4. Conflict between $35,000 vs. $20,000 – SHB 1555, section 7  (1) Subject to subsection (5) of this section, the amount of all taxes, increases, and penalties due or to become due under Title 82 RCW, from a contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is twenty thousand dollars or more, shall be a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract  (2) Subject to subsection (5) of this section, after payment of all taxes, increases, and penalties due or to become due under Title 82 RCW, from a contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is twenty thousand dollars or more, the amount of all other taxes, increases, and penalties under Title 82 RCW, due and owing from the contractor, shall be a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract. Subsection 1 Subsection 2 Subsection 3 Revenue – this project Revenue – this project ESD and L&I $20,000 (SHB 1555) $20,000 (SHB 1555)* $20,000 (SHB 1555) $35,000 (HB 1199) * Referring back to this project mentioned in Subsection 1 40 40
    • SHB 1555 - Underground Economy Outstanding Issues 4. Conflict between $35,000 vs. $20,000  Notification Responsibilities: SHB 1555 requires public agencies to only notify Revenue, ESD, and L&I of projects over $35,000 (RCW 60.28.051)  Claim Rights of State Agencies: SHB 1555 only gives them claim rights for contracts of $20,000 or more, leaving gap between $20,000 and $35,000 when awarding agencies must notify State agencies.  Current ESD Threshold: SHB 1555 uses $20,000 for Employment Security and L&I releases when current practice is $35,000 for ESD. 41 41
    • SHB 1555 - Underground Economy Business Licenses & Contractor Registration  List of Subcontractors: “A contractor must maintain and have available for inspection by the department a list of all direct subcontractors and a copy of their certificate of registration.” (RCW 18.27)  Verify Registration Before Business License: An agency “that issues a business license to a person required to be registered under chapter 18.27 RCW may verify that the person is registered under chapter 18.27 RCW and report violations to the department of labor and industries.”  Agencies Affected:  Cities: RCW 35.21 (cities and towns), 35A.21 (code cities)  Counties: RCW 36.01  “The department of licensing shall conduct the verification for cities that participate in the master license system. 42 42
    • HB 1197 – Alternative Public Works  Design-Build  Threshold Amount: Allows for 10 Design-Build projects with a total project cost between $2 and $10 million  June 2010 report to CPARB due  DBOM: Allows for 2 Design-Build projects that include procurement of operations and maintenance services for a period longer than 3 years  Honorarium: Allows honorarium payments to Design- Build finalists submitting “responsive” proposals, rather than “best and final.”  Owner may not always use “best and final” process 43 43
    • HB 1197 – Alternative Public Works  GC/CM  Requires public bid openings for GC/CM submission of their prices  Previous scores must be open for public review at bid opening  Job Order Contracting  Allows UW, GA, and WSU to issue job order contract work orders for regional universities and The Evergreen State College 44 44
    • HB 1197 – Alternative Public Works  Certification of Public Bodies  GC/CM: For GC/CM certification, must demonstrate successful management of at least one GC/CM project within last 5 years.  Design-Build: For Design-Build certification, must demonstrate successful management of at least one Design-Build project within last 5 years. 45 45
    • Attorney General Opinion on Housing Authorities  Are Housing Authorities subject to RCW 39.10?  Definition of Public Body: Housing Authorities are a quot;public body“  Exemption? Housing authorities have pointed to RCW 35.82.070, arguing they are not subject to various state laws quot;unless the legislature shall specifically so state.quot;  Limited application of Exemption: Provision only applies to laws quot;with respect to the acquisition, operation or disposition of property.“  Exemption not applicable to Alternative Public Works: Attorney General stated that chapter 39.10 RCW is quot;not a statute relating to the acquisition, operation, or disposition of property, and therefore, RCW 35.82.070(10) does not exempt public housing from the provisions of RCW 39.10.“ Attorney General Opinion 2009, No. 2, issued on April 24, 2009 46 46
    •  HB 1200 – Bid Negotiation: Would have permitted municipalities (not just the State) to negotiate an adjustment to the bid price with the low responsive bidder subject to various conditions.  EHB 1836 – Off-Site Prefabrication: Would have required reporting by agencies of information related to out-of-state off-site prefabrication.  SSB 5969 – Listing of Subcontractors: Would have removed requirement that substituted subcontractor prove that they were substituted “in furtherance of bid shopping.” Added other reasons for legitimate substitution. 47
    •  HB 1690 – Applicability of Alternative Public Works: Would have clarified the intent of the legislature that only the Alternative Public Works Contracting procedures outlined in chapter 39.10 RCW were authorized.  HB 1830 – Small Works Roster Use of Small Businesses: Would have defined microbusiness, minibusiness, and small business based on gross revenue and permitted solicitation of only these businesses when using the Limited Public Works process under the Small Works Roster. 48
    • EHB 1513 – Municipality Financing Participation RCW 35.91.020  This RCW is known as the Municipal Water and Sewer Facilities Act  Applies to cities, towns, counties, water-sewer districts, and drainage districts (“municipalities”)  Allows developers to be reimbursed by subsequent developers for constructing water, sewer and stormwater facilities that serve undeveloped property  EHB 1513 allows a municipality to initiate a latecomer agreement on its own or to contribute funds to a developer project and to be reimbursed proportionately 6/4/2009 49
    • EHB 1513 – Municipality Financing Participation  Ch. 35.72 RCW is a similar statute that provides for reimbursement for transportation facilities  Ch 35.72 RCW already allows a city, town, or county to initiate a latecomer agreement on its own or to contribute funds to a developer transportation facilities project and to be reimbursed proportionately 6/4/2009 50
    • EHB 1513 – Municipality Financing Participation  Neither EHB 1513 nor the existing ch. 35.73 RCW address the fundamental issues of public works contracting and prevailing wages  If a municipality participates in a latecomer agreement, does that participation make the work included in the latecomer agreement a public works project?  MRSC suggested the additional language on the next slide to address this issue, but it was not included in the bill  AWC will seek to have this language included in then 2010 session 6/4/2009 51
    • EHB 1513 – Municipality Financing Participation  MRSC suggested the following additional language:  If a municipality joins in the financing of an improvement project for water or sewer facilities, but construction is done by an owner of real estate, construction of the facilities is subject to prevailing wages under chapter 39.12 RCW, but is not subject to public works bid law. If a municipality creates an assessment reimbursement area on its own initiative, without the participation of a private property owner, then construction of the facilities is subject to prevailing wages under chapter 39.12 RCW, and subject to public works bid law.  If a county, city or town joins in the financing of a transportation improvement project , but construction is done a by an owner of real estate, construction of the facilities is subject to prevailing wages under chapter 39,12 RCW, but is not subject to public works bid law. If a county, city or town creates an assessment reimbursement area on its own initiative, without the participation of a private property owner, then construction of the improvement project is subject to prevailing wages under chapter 39,12 RCW, and subject to public works bid law. 6/4/2009 52
    •  SB 6173 - Improving Sales Tax Compliance  Makes the purchase of materials and subcontractor services for construction retail sales  Requires contractors and other construction businesses to pay retail sales tax after January 1, 2010.  Construction businesses would be allowed to claim a credit on their excise tax returns for the amount of retail sales or use taxes already paid on the purchase or use of materials or paid by subcontractors.  The bill provides sales and use tax exemptions to maintain eligibility for construction projects under sales and use tax deferral certificates or specific exemptions.  Does not directly impact agencies in terms of reporting, but may impact costs. 6/4/2009 53
    • Experience: Mike Purdy has more than 29 years of experience as a manager in public contracting and procurement in Seattle. He is the Contracts Manager for the University of Washington’s Capital Projects Office and is responsible for managing design and construction contracts for more than $1 billion worth of projects at the University. Before joining the UW in 2005, he spent five years at the Seattle Housing Authority where he served as Contracting and Procurement Manager, overseeing all of the contracting and purchasing (construction, design consultants, other consultants, goods, supplies, and services) for the largest residential landlord in the state. Prior to that he worked for the City of Seattle for more than 21 years, where he administered the City’s construction and consultant contracts as the City’s Contracting Manager. He is also the principal of Michael E. Purdy Associates (www.mpurdy.com), a consultant firm established in 2005 to help public agencies and businesses develop and implement effective contracting strategies, solve complex contracting problems, and obtain tailored training in contract administration. He maintains the popular Public Contracting Blog at http://PublicContracting.blogspot.com. Education: He has a bachelor’s degree in business and public administration and an MBA, both from the University of Puget Sound, and a master of divinity degree from Fuller Theological Seminary. 6/4/2009 54
    • Michael E. Purdy Contracts Manager University of Washington Capital Projects Office (206) 221-4235 mpurdy@u.washington.edu 55 55
    • John W. Carpita Public Works Consultant Municipal Research and Services Center (206) 625-1300 jcarpita@mrsc.org 56 56