On Washington public works projects, subcontractors and suppliers who have not been paid can make a claim against the retainage bond posted by the general contractor under RCW 60.28. If the public owner has accepted a retainage bond in lieu of withholding cash retainage, a claimant must file a written notice of claim with the public body before the retainage bond is released — and separately, to pursue payment bond rights under RCW 39.08, a first-tier subcontractor must give written notice to the surety within 30 days of the last day the public bond is open for claims, while a second-tier claimant must serve written notice within 30 days of first furnishing. Missing either deadline forfeits that specific remedy. These are distinct statutes with distinct procedures; conflating them costs subcontractors real money.
What Is a Washington Public Works Retainage Bond and Who Can Make a Claim Against It?
A retainage bond on a Washington public works project is a surety bond that a general contractor posts as a substitute for the cash retainage the public owner would otherwise hold back under RCW 60.28.010. When the owner accepts the bond, the contractor receives the withheld funds, but the bond stands in place of that cash to protect subcontractors and suppliers who are owed money.
Any subcontractor, material supplier, or laborer who furnished labor, materials, or equipment to a Washington public works project can make a claim against the retainage bond if they have not been paid. This includes second-tier subcontractors — those who contract with a subcontractor rather than directly with the general contractor — provided they meet the notice requirements discussed below. The bond is held as security until all claims are resolved and final completion of the project has occurred.
It is worth understanding the practical stakes here. According to Rabbet's 2024 Construction Payments Report, 82% of contractors face payment waits of over 30 days, up from 49% just two years earlier. On public works jobs, retainage compounds that pressure — which is exactly why Washington law provides the bond claim mechanism as a direct enforcement tool.
What Is the Deadline for a Retainage Bond Claim on a Washington Public Works Project?
Under RCW 60.28.011, a claimant must file a written notice of claim with the public body before the retainage or retainage bond is released. The public body is required to give public notice before releasing retainage, and claimants must act within that window.
Specifically, RCW 60.28.011(2) provides that after the public body gives notice that it intends to release retainage, any claimant who has not been paid must file their claim before that release occurs. The statute requires the public owner to hold retainage for a period that allows claims to be filed, but once the body moves to release and proper notice has been given, a claimant who misses the filing window loses the ability to reach those retained funds or the bond proceeds.
Do not rely on an informal notification from the GC or the owner's project manager. Monitor the project's public notice filings and file your claim proactively. Waiting is the single most common reason subcontractors lose retainage bond rights in Washington.
How Does a Retainage Bond Claim Differ From a Payment Bond Claim Under RCW 39.08?
These are two separate remedies governed by two separate statutes, and the deadlines are different. Confusing them is a costly mistake.
Retainage bond claim (RCW 60.28): Targets the bond posted as a substitute for withheld retainage. The claimant files with the public body before retainage is released. The purpose is to reach the retained percentage — typically 5% of contract value — that secures the owner's interest in completed performance.
Payment bond claim (RCW 39.08): Targets the contractor's payment bond, which covers the broader scope of unpaid labor and materials on the project. Under RCW 39.08.030, a claimant who has a direct contract with the principal (the GC) must bring suit within a specific period after the bond is open for claims. For claimants who do not have a direct contract with the GC — second-tier subs and suppliers — RCW 39.08.010 requires that they give written notice to the contractor within 30 days of first furnishing labor or materials to the project.
The enforcement window for a payment bond claim under RCW 39.08 is separate from the retainage filing deadline under RCW 60.28. Filing one does not satisfy the other. If you are owed money on a Washington public works job, evaluate both remedies and track both deadlines independently.
What Documents Do You Need to File a Retainage Bond Claim in Washington?
A retainage bond claim in Washington is not a form-heavy process, but you must have the right information assembled before you file.
Minimum documentation you should gather:
- Your contract or subcontract agreement (identifies the project, parties, and contract amount)
- A clear statement of the amount owed, itemized if possible (labor, materials, equipment separately)
- Invoices submitted and not paid, with dates
- Any conditional or unconditional lien waivers you have already signed — these affect what you can still claim
- The name of the general contractor and their surety (if claiming against the retainage bond, you need the bonding company's identity)
- The name and address of the public body holding the retainage or the bond
- Documentation of when you first furnished labor or materials and your last date of work
Your written notice of claim to the public body must identify the project, the claimant, the amount claimed, and the basis for the claim. There is no single state-mandated form for this notice under RCW 60.28, but the substance requirements are clear: the public body needs enough information to hold the funds and evaluate the claim.
Keep copies of every document you send, and use a trackable delivery method — certified mail with a certificate of mailing — so you have proof of timely filing if the claim is disputed.
What Are the Rights of Second-Tier Subcontractors on Washington Public Works Retainage Claims?
Second-tier subcontractors — those who contract with a subcontractor rather than directly with the general contractor — have retainage bond claim rights under Washington law, but they carry an additional notice burden under the payment bond statute that first-tier subs do not.
Under RCW 39.08.010, a person who furnishes labor or materials to a public works project but does not have a direct contract with the contractor must give written notice to the contractor within 30 days of first furnishing. This notice is the gateway to payment bond rights. Without it, a second-tier claimant cannot recover against the payment bond under RCW 39.08.
For retainage bond claims under RCW 60.28, the right to claim attaches to all parties who furnished labor or materials to the project and have not been paid — including second-tier parties — provided the claim is filed before the retainage or retainage bond is released. Second-tier subs should therefore pursue both tracks: the 30-day notice to the contractor to preserve payment bond rights, and a timely claim to the public body to preserve retainage bond rights.
If you are a second-tier sub on a Washington public works job, the 30-day payment bond notice window starts running the day you put boots on the job or deliver the first material load. That clock does not wait.
Washington lien notice resources
What Are the Steps to File a Washington Public Works Retainage Bond Claim?
Filing a retainage bond claim under RCW 60.28 follows a clear sequence. Work through it in order.
Step 1 — Confirm retainage bond exists. Request a copy of the retainage bond from the public body or the GC early in the project. Know the surety's name and bond number before you ever need to file.
Step 2 — Document your unpaid balance. Pull every unpaid invoice, calculate the outstanding balance, and reconcile against any waivers you have signed. Only claim what you can support with paperwork.
Step 3 — Monitor for the public body's release notice. The public body must give notice before releasing retainage under RCW 60.28.011. Watch for this notice — it triggers the filing window.
Step 4 — File a written notice of claim with the public body. Your claim must be in writing, delivered to the public body, before the retainage or bond is released. Include the project name, your identity, the amount owed, and the basis for nonpayment.
Step 5 — Serve the surety if you are pursuing the bond directly. If the GC has posted a retainage bond and you are making a direct claim against the bond, notify the surety in writing of your claim.
Step 6 — Preserve payment bond rights separately. If you have not already served the 30-day notice required under RCW 39.08 for second-tier claimants, assess whether that deadline has passed and what options remain.
Step 7 — Consult a Washington construction attorney. RCW 60.28 and RCW 39.08 interact with each other and with project-specific contract terms. A construction attorney licensed in Washington can identify claim-specific nuances that this guide cannot substitute for.
What Happens to Retainage When the Public Body Accepts Final Completion?
Under RCW 60.28.011, after a public works contract is completed, the public owner must notify claimants of the final completion date and provide an opportunity to file claims before retainage — or the retainage bond — is released. The public body is required to hold retainage for 45 days after the notice of final completion before releasing it, to allow claimants time to file.
If no claims are filed within that period and all other conditions are met, the public body releases the retainage or discharges the bond. If a valid claim is filed, the public body must retain the disputed amount until the claim is resolved — either through payment, litigation, or a written agreement between the parties.
For subcontractors, this 45-day post-completion window is the critical enforcement period under RCW 60.28. It is separate from the 30-day payment bond notice window under RCW 39.08. Missing the 45-day retainage filing window while the 30-day payment bond notice has also lapsed leaves a subcontractor with no secured remedy and a general unsecured claim — which, in a project default scenario, recovers cents on the dollar at best.
According to Rabbet's 2024 Construction Payments Report, slow payments cost the U.S. construction industry an estimated $280 billion in 2024, adding roughly 14% to total construction spending. The retainage bond claim mechanism exists specifically to prevent subcontractors from absorbing that cost silently.
Frequently Asked Questions
Does a Washington subcontractor need to file a preliminary notice to preserve retainage bond claim rights?
Washington public works projects do not carry the same preliminary notice requirement as private works under RCW 60.04. However, second-tier subcontractors and suppliers must serve a written notice on the general contractor within 30 days of first furnishing in order to preserve payment bond rights under RCW 39.08.010. Failing to serve that notice bars payment bond recovery for second-tier claimants. First-tier subcontractors with a direct contract with the GC are not subject to the same 30-day preliminary notice requirement under RCW 39.08.
Can a subcontractor make both a retainage bond claim and a payment bond claim on the same Washington public works project?
Yes. A subcontractor can pursue both remedies simultaneously because they are governed by separate statutes — RCW 60.28 for retainage and RCW 39.08 for payment bonds — and they reach different pools of money. The retainage bond covers the withheld percentage; the payment bond covers broader unpaid labor and material costs. Each requires independent compliance with its own notice and deadline rules.
What if the general contractor disputes my retainage bond claim in Washington?
If the GC disputes the claim, the amount in dispute must remain held by the public body until the dispute is resolved. Resolution can occur through direct negotiation and written agreement, arbitration if the contract requires it, or litigation. Under RCW 60.28.030, the claimant may bring a civil action to enforce the claim. You should have legal counsel involved before a dispute escalates to litigation.
Is there a minimum dollar threshold to file a retainage bond claim in Washington?
RCW 60.28 does not specify a minimum dollar threshold for filing a retainage bond claim. Any unpaid amount that is legitimately owed and supported by documentation can form the basis of a claim. That said, the practical economics of pursuing a claim — including potential litigation costs — should factor into how you decide to proceed on small balances.
What is the difference between retainage withheld by the public owner and a retainage bond?
When an owner withholds cash retainage, the funds sit in a state account or an escrow until final completion and all claims are resolved. A retainage bond is a surety instrument posted by the general contractor that substitutes for that cash — the contractor gets the cash released, and the bond stands as security in its place. Under RCW 60.28.010, a public owner may permit a contractor to submit a retainage bond in lieu of cash retainage. A subcontractor's claim process is similar in both scenarios: file before the cash or bond is released.
How does final completion get determined on a Washington public works project?
Final completion is declared by the public owner — typically the agency — after the contractor has fulfilled all contract requirements and the owner has accepted the work. The public body then issues notice of final completion, which starts the 45-day retainage release window under RCW 60.28.011. Subcontractors should monitor public records and project communications closely around the time of project closeout because the completion notice can be issued without direct notification to subs.
Can a material supplier (not a sub) make a retainage bond claim in Washington?
Yes. Material suppliers who furnished materials incorporated into a Washington public works project have rights under both RCW 60.28 and RCW 39.08. A supplier contracting directly with the GC is a first-tier claimant. A supplier contracting with a subcontractor is a second-tier claimant and must serve the 30-day written notice to the GC under RCW 39.08.010 to preserve payment bond rights. Retainage bond claims under RCW 60.28 are available to any party who furnished labor, materials, or equipment and has not been paid.
Does filing a retainage bond claim affect a subcontractor's ability to get hired on future public projects?
No Washington statute penalizes a subcontractor for filing a legitimate retainage bond claim. Filing a claim is a legal right, not a breach of contract. That said, how you manage the commercial relationship around a dispute — including communication, documentation, and timeline — can affect your working relationship with a GC going forward. This is a business judgment call, not a legal exposure.
Protect Your Retainage Rights Before the Clock Runs Out
Washington's retainage bond claim rules under RCW 60.28 and payment bond rules under RCW 39.08 run on separate timelines. The 45-day window after final completion notice and the 30-day payment bond notice for second-tier subs are not forgiving — they pass quickly on active projects, especially when you're focused on the work itself.
Track every project's completion status, know your deadlines before you need them, and file with documented proof of delivery. If you're a Washington subcontractor managing multiple jobs, use LienFlash to calculate your exact filing deadlines and stay ahead of notice requirements.
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