New legislation applicable to Washington public construction projects completed after September 30, 2009, requires approval from the Department of Labor & Industries ("L&I") in order to release retainage. School districts must not pay any retained funds to a contractor until L&I has approved the release. This applies to all construction projects over $35,000. The purpose of the new statute is to ensure that contractors are paying their industrial insurance.

If you have questions, ask them at the 21st Annual School Construction Conference on October 23 or contact one of the contributing authors.