Implementing prompt pay recommendations from the capital projects advisory review board.

SB 5176 requires Washington state and local governments to pay public works contractors within 30 days of receiving a properly completed invoice, replacing previous timelines. It mandates that contractors pay subcontractors within 10 days of receiving payment from the government, with 1% monthly interest accruing on late payments. The bill also establishes clear procedures for handling disputes (without delaying payments to non-disputing parties) and requires change orders for additional work within 30 days. This directly affects contractors, subcontractors, and public agencies working on public construction projects, ensuring faster payment flows and reducing financial strain on smaller businesses. The law amends existing payment rules in Washington statutes to enforce these timelines and penalties.