Washington Contractor Disclosure Statement (Notice to Customer)

Short Answer: RCW 18.27.114 requires a written Notice to Customer before a contractor starts most residential jobs of $1,000 or more. It lists the registration number and bond and warns about liens and retainage.

Quick Facts

Washington law requires contractors to give many residential customers a short written notice, often called the Notice to Customer, before work starts. It is easy to sign without reading. Here is why you should read it, and what it tells you.

The Legal Requirement

RCW 18.27.114 requires a contractor to provide a disclosure statement in substantially the form the law sets out, and to have the customer sign it, before starting work on:

• the repair, alteration or construction of four or fewer residential units or accessory structures on that property, when the bid or contract price is $1,000 or more, and
• certain commercial work where the price is at least $1,000 but under $60,000.

The notice must be given before work begins.

What the Notice Tells You

The disclosure statement is a compact summary of your protections and risks. It covers:

The Contractor’s Registration

The registration number and its expiration date. Use them straight away to confirm the record, following the steps in How to Check a Contractor License in Washington.

The Bond

The amount of the contractor’s bond or deposit, and a warning that it may not be enough to cover a claim and is shared with other claimants such as workers and suppliers.

Retainage

A statement that you may withhold a contractually defined percentage of the payment, called retainage, until the job is complete, for greater protection.

Liens

A warning that if the contractor does not pay subcontractors, suppliers or workers, they may file a lien against your property, and that you may request lien release documents. Liens are explained in Lien Release Explained for Washington Homeowners.

What It Changes for the Contractor

The notice has teeth. Under RCW 18.27.114, a contractor that fails to provide the disclosure statement is barred from bringing a lien claim on that contract. The contractor must also notify the customer if its registration expires or is suspended before the work is completed.

Tip: If a contractor starts work on a qualifying job without giving you the notice, that alone tells you something about how carefully it follows the rules.

How to Use the Notice in Practice

1. Read it before you sign the contract. It is short.
2. Check the registration number on the notice against the state record. Make sure it belongs to the business named on your contract.
3. Note the bond amount. Compare it with the general ($30,000) or specialty ($15,000) amount and with your project cost.
4. Decide about retainage. For larger jobs, write a retainage percentage into the contract and release it after final completion and lien releases.
5. Ask for lien releases from subcontractors and suppliers as they are paid.
6. Keep the signed notice with your contract file.

What the Notice Does Not Do

• It does not mean the contractor is good at the work.
• It does not guarantee the bond will cover your loss.
• It does not replace a written contract with scope, price, schedule and warranty. Use the Home Improvement Contract Checklist for Washington for that.

Common Situations

Small Jobs Under $1,000

The statute does not require the notice below $1,000, but you still benefit from checking the registration and getting the price in writing.

Several Small Invoices

If a job is split into several invoices that together exceed $1,000, ask for the notice anyway. A contractor following the spirit of the law will not object.

Subcontractors

You normally receive the notice from the contractor you hire directly. Subcontractors and suppliers may send you a separate “Notice to Owner” of their lien rights; keep those too, because they tell you whose lien releases to collect.

Expiry During the Job

If the contractor’s registration expires or is suspended mid-project, the contractor must tell you. If you notice it first, pause payments and ask for a written explanation.

Why This Paperwork Matters Later

If a dispute arises, the signed disclosure statement, the contract and your payment records are the core documents for a bond claim, an insurance claim or a court case. Collecting them from day one costs nothing and can save a great deal.

A Quick Checklist

• Notice received before work starts.
• Registration number matches the contract and the state record.
• Bond amount noted.
• Retainage decision made and written into the contract.
• Plan for collecting lien releases agreed.
• Signed copy filed.

A Worked Example: Using the Notice on Day One

A homeowner signs a contract for a $14,000 deck. Before work starts, the contractor hands over the Notice to Customer. The homeowner reads it at the kitchen table and does four things in ten minutes:

1. Searches the registration number on the notice and confirms the record is ACTIVE, the legal name matches the contract, and the bond and insurance are current.
2. Notes the bond amount and that it is shared with other claimants.
3. Adds a clause to the contract holding back 5% as retainage until the final inspection and lien releases.
4. Asks the contractor which lumber yard will supply materials, so they can expect and keep any Notice to Owner from the supplier.

None of this is confrontational. It simply turns a required form into a working checklist.

Key Terms on the Notice

• Registration number: the contractor’s L&I number, which you can verify.
• Bond or deposit: the security the contractor posts with the state.
• Retainage: a portion of the price you hold back until completion.
• Lien: a claim against your property by someone who was not paid for work or materials.
• Lien release: a document confirming payment and giving up lien rights for that amount.

If You Never Received the Notice

If your job met the thresholds and you did not get the statement, ask the contractor for it in writing and keep a copy of your request. Note the date work started. If a dispute later arises, especially about a lien, tell any lawyer you consult that no notice was given, because it affects the contractor’s lien rights.