A recent legislative amendment to the Washington Contractor Registration Act (the “CRA”) underscores  the need for residential property developers to assess whether the development activities they perform on their Washington projects constitute those of a “contractor” and thus require registration with the Department of Labor and Industries. On April 22, 2015, Washington Governor Jay Inslee approved House Bill 1749, amending the definition of “contractor” in RCW 18.27.010.  The new law becomes effective July 24, 2015.

Prior to this legislation, the statute’s broad language required any person or entity, other than a residential homeowner, involved in improving property, at any level and in essentially any capacity, to be registered as a “contractor,” which imposed an onerous, likely unintended burden on residential developers or “house flippers” to register as “contractors” and applied regardless of whether such persons or entities actually hired a registered contractor to perform the improvement work on their property.

The new contractor registration statute reorganizes the applicable legal definitions and amends the original language by specifically excluding from the definition of “contractor” anyone contracting directly with a general contractor and not superintending the work.

Read the Stoel Rives Construction Law Alert here.

Photo of Bart Reed Bart Reed

Bart Reed is a partner in the firm’s Seattle office and practices with the Real Estate and Construction group. With extensive experience in complex commercial and construction law, multistate litigation and ADR (representing clients in 28 states), Bart focuses his practice on construction…

Bart Reed is a partner in the firm’s Seattle office and practices with the Real Estate and Construction group. With extensive experience in complex commercial and construction law, multistate litigation and ADR (representing clients in 28 states), Bart focuses his practice on construction and design issues and disputes, representing owners, developers, contractors, subcontractors, design professionals and sureties, in diverse matters on both public and private projects. His experience covers a wide range of issues affecting design and construction clients, including contract drafting/negotiation, non-payment and surety claims, construction liens and payment bond claims, design disputes, construction defects, and scheduling issues in the defense and prosecution of delay/impact claims.

Click here for Bart Reed’s full bio.