Contractor Registration - Can’t Live Without It!

By: Jason Piskel

In Washington, a contractor must be registered at the time of entering into a contract for a Project. This means having a valid bond, and without a bond, the contractor loses the right to pursue a claim for work performed while unregistered. Division I of the Washington Court of Appeals provides us with a good example of this situation. In Abacus Fine Carpentry, LLC v. Wilson, No. 80324-7-I, the court held that the cancellation of a contractor’s bond for nonpayment results in automatic loss of contractor registration. Abacus argued its nonpayment was an honest mistake, and the Department of Labor and Industries records did not note the cancellation of the bond. However, Abacus did not deny it had notice of the bond’s cancellation. Abacus tried a unique argument, contending that because the Department did not note the bond cancellation, it may pursue a claim up until the Department takes action to suspend the contractor. The appeals court disagreed with Abacus, reasoning via statutory construction of plain meaning that the word automatic does not require a specific action by the Department, and thus the failure of the contractor to maintain its registered status is fatal to its desire to seek a claim for a project. 

Contact the lawyers at PYK with any questions you may have regarding proper registration when performing construction in Washington.