Surety bonds • Washington
Washington Public Works Bonds (RCW 39.08.010): Requirements and Retainage Option
Under RCW 39.08.010, contractors on Washington public works must provide a surety bond that guarantees performance of the contract and payment of laborers, mechanics, subcontractors, and material suppliers. On contracts of $150,000 or less, the contractor may elect to have the public entity retain 10% of the contract amount instead of providing a bond.
This guide covers the bond requirement, who it protects, the retainage alternative, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
Published by Blake Insurance Group LLC · Reviewed November 2026
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The bond requirement
RCW 39.08.010 requires a good and sufficient bond, with a surety company as surety, conditioned on the contractor performing the contract and paying all laborers, mechanics, subcontractors, and material suppliers. People who furnish services or materials to a subcontractor also have rights under the bond. Check the bid documents for the required bond amount.
The retainage alternative
On contracts of $150,000 or less, at the contractor’s election, the public entity may retain 10% of the contract amount in place of the bond, for 30 days after final acceptance or until all necessary releases are received, whichever is later (RCW 39.08.010). Separate small works rules may allow waivers on very small contracts (MRSC).
Who the bond protects
The bond protects the public entity and the workers, subcontractors, and suppliers on the project. See our performance bond and payment bond guides.
How much Washington contract bonds cost
Public works bonds are priced as a percentage of the bond amount, commonly about 0.5% to 3% based on the contractor’s finances and experience (NASBP).
Washington public works bond FAQs
Are bonds required on Washington public works?
Yes. RCW 39.08.010 requires a surety bond guaranteeing performance and payment of workers and suppliers.
Can I use retainage instead of a bond in Washington?
On contracts of $150,000 or less, the contractor may elect 10% retainage instead of a bond.
Who does a Washington public works bond protect?
The public entity, plus laborers, mechanics, subcontractors, and material suppliers.
Related guides
- Washington surety bonds
- Performance bonds
- Payment bonds
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
- Iowa public works bond
- Oklahoma public works bond
- South Carolina public works bond
- Alabama public works bond
- Tennessee public works bond
Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
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