Planning a Small Works Roster Project
This page provides information to help public agencies in Washington State plan small works roster projects, including the definition of a small works project, scoping/cost estimating, prevailing wages, bonds/retainage, solicitation options, and federal funding considerations.
It is part of MRSC's Small Works Roster Manual, which places an emphasis on the use of the statewide small works roster administered by MRSC Rosters.
Small Works Roster Checklist: Also see MRSC's Small Works Roster Checklist, which provides a two-page overview of the small works roster process – including preparing your project, competitive bids, direct contracting, and post-award.
New legislation: Beginning January 1, 2027, HB 2420 (enacted in 2026) will allow more public works contracts to be awarded using the small works roster process by increasing the small works roster threshold in phases:
- Previous threshold: $350,000
- January 1, 2027 to June 30, 2027: $530,000
- July 1, 2027 to June 30, 2028: $560,000
- July 1, 2028 to June 30, 2029: $590,000
- July 1, 2029 to June 30, 2030: $620,000
- July 1, 2030 and later: $650,000
The direct contracting limit of $150,000 will stay the same. All thresholds shown exclude sales tax. We will update the Small Works Roster Manual once this legislation takes effect.
What is a Small Works Project?
A small works project, in the context of a small works roster, is defined as a project, executed through a contract, for the “construction, building, renovation, remodeling, alteration, repair, or improvement of real property […] with an estimated cost of $350,000 or less excluding state sales tax.” See RCW 39.04.152(1). (This is slightly different than the general definition of a “public work” found in RCW 39.04.010.)
A small works project is typically a distinct, one-time construction project, rather than a series of smaller or recurring projects which are often better suited for other public works contracting methods.
Public works projects estimated to cost more than $350,000 may not be procured using the small works roster process. A local government may not “bid split” or break a project into units or construct a project by phases for the purpose of avoiding public bid limits. See RCW 39.04.151(1)(f).
Practice Tip: Because of the new and more specific definition of “small works project” in RCW 39.04.152(1), on-call, recurring, maintenance, or purchased services that are not construction, building renovation, remodeling, alteration, repair, or improvement cannot be contracted using a small works roster and process after July 1, 2024. MRSC Rosters has moved these service categories to our “Vendor Roster.”
Scoping and Cost Estimating
Any project to be solicited through the small works roster and process must be scoped and described accurately and include an estimate for the cost of the work. See RCW 39.04.152(3). These requirements are in place to ensure fair competition and accurate pricing.
Any public works project, including small works, needs to be funded (or have funding allocated) before inviting bids (RCW 39.04.020).
To prepare a small works scope of work, MRSC provides the following guidance, broken into five key areas:
- Documenting existing conditions
- Developing the project scope
- Developing a cost estimate
- Understanding permitting requirements
- Preparing the sample contract (contract form)
You can also refer to MRSC's one-page sample scope development worksheet.
Documenting Existing Conditions
Once you have a general idea of the small works project your public agency wants to undertake, but before developing the project scope, you should understand and describe the current conditions and operational needs of the buildings, infrastructure, and/or assets needing to be repaired, renovated, replaced, or built.
The best way to do this is through subject matter experts on your own staff or a third-party professional/consultant. It is a common practice to have a subject matter expert, such as an engineer, perform a current state analysis or develop a recommendation and scope, particularly on existing buildings and infrastructure which often require a professional license to design and permit the work.
Understanding the existing conditions will help you develop the project scope and select the best project type and work category to generate the most relevant project-specific roster. A relevant and accurate list of businesses will help level the playing field and help with competition.
Practice Tip: Information on existing conditions does not need to be long or technical if the project does not warrant that level of detail. The information should be tailored to the project-specific roster, the permitting needs, and the desired project outcome. On small projects, photographs with general descriptions often suffice.
Developing the Project Scope
You will need to have a full work description and narrative for the project invitation. See RCW 39.04.152(3). The statewide public works roster sorts registered contractors by agency/location, project type, and work category.
Although not required by statute, it is a best practice to develop the project scope around the primary project type/work category so that when a project-specific roster is pulled, the list of available contractors most closely matches your agency's needs.
Project types provide a general orientation to the primary work included in the project and indicate the type of prime contractor you are seeking. The statewide small works roster uses the following project types:
- Buildings/facilities
- Parks, grounds, and landscaping
- Civil (earthwork, site work)
- Roads and bridges
After selecting the most appropriate project type, you will need to further narrow the project into a primary work category. Work categories are more narrowly focused, and the exact work category options will vary depending on the project type. There are hundreds of available categories; below are just a few examples:
- New construction
- Landscaping installation or replacement
- HVAC installation or repairs (heating, ventilation, and air conditioning)
- Roofing
- Sidewalk repairs
- Playground replacement
- Fencing replacement
Contractors will often look for a project type first, and then a work category. For instance, roofers will look for building/facility projects first, and then they will look for roofing projects.
For the complete list of project types and work categories, including descriptions, on the statewide small works roster, please log in to the MRSC Rosters website.
The statewide small works roster uses the most commonly awarded project types as pulled from L&I data. Some less common project types and work categories may not be included, and as a result some project types and work categories may need to be formally solicited through a public competitive bid.
Practice Tip: Create a “sandbox” and perform due diligence to understand the potential bidding pool. Before “locking in” a project-specific roster (List of Businesses), we recommend conducting an analysis of the currently registered contractors in a project type and work category.
If it appears there are not any contractors registered with your agency within the indicated project type and work category, you may need to engage other businesses and invite them to register on the roster before “finalizing” the project-specific roster. (See MRSC Rosters: Business Membership.)
If you find you need more contractor representation in a project type or work category, we recommend that you first search the OMWBE certified business directory by business description. If there are no matching businesses in the OMWBE directory, you could search the Internet or business listings near your area. You can also try calling the permitting authorities (authorities having jurisdiction) in your area and requesting a list of contractors who have pulled permits for similar project types to identify potential contractors.
In rare cases, the statewide small works roster may not be an efficient tool for soliciting your project because there are no contractors listed for the needed project type/work category, in which case a formal solicitation and public bid may be required to have an adequate bid pool.
Developing a Cost Estimate
Public agencies must develop a project estimate to determine the available solicitation options as described later on this page.
If the cost estimate is over $350,000 excluding sales tax, you cannot use the small works roster process. As noted earlier, public agencies may not engage in “bid splitting” if done for the purpose of avoiding public bid limits.
For small works projects it is common practice to use a budget estimate instead of a fully developed construction estimate or “engineer’s estimate.”
There are two typical approaches for estimating costs on small projects:
- An internal assessment by agency staff based on similar work bid or performed in the past, or
- An independent third-party estimate (professional estimator or engineer) based on current construction market conditions and technical scope.
When feasible, it is best to seek out third-party expertise, particularly if your project includes work that your agency does not typically bid out or perform with its own employees. Always consult your agency’s statutes and policies for any specific cost estimating requirements.
Understanding Permitting Requirements
Most construction projects require some level of permitting. The cost of the work is generally not a factor in permit requirements. Permitting requires additional time and money that will need to be factored into your scope and estimate.
It is common with small construction projects for permits to be issued directly to the contractor “over the counter.” Examples of such “over the counter” permits may include, but are not limited to:
- Electrical or mechanical replacements or upgrades
- Plumbing
- Roofing
- Fencing
Sometimes work is more extensive and requires more involved reviews, an engineer’s stamp, and/or permit issuance to the public owner directly. Examples of more complicated permits may include, but are not limited to:
- Changes to the use and/or capacity of the facility
- Moving walls
- Adding square footage
- Using multiple trades
Practice Tip: It is a best practice to understand which authorities have jurisdiction over your project and how the permitting process may impact the cost, time, and scope of the work. Each authority having jurisdiction may have its own processes and thresholds, so check the permit requirements and include them as part of the scope and estimate for each project.
Preparing the Sample Contract (Contract Form)
State agencies and local governments must execute a contract for the project once the lowest responsive bid from a responsible bidder has been determined. The form of the contract (sample contract) you expect a contractor to sign should be prepared in advance and attached to your invitation.
It is a good practice for each public agency to have a unique small or “short form” construction contract template to use when any public works projects are estimated to cost less than $500,000.
Practice Tip: MRSC recommends that local governments not sign a contract provided by a contractor unless it has been reviewed by the agency’s legal counsel for compliance with state and local laws. Similarly, if a hired designer or consultant provides you with a contract to use, we recommend you have it reviewed by your legal counsel before use.
Prevailing Wages
As with other methods of public works contracting, small works contracts require the payment of prevailing wages under chapter 39.12 RCW. Once the contract is executed, proceed to the L&I Prevailing Wage Intents and Affidavits (PWIA) Awarding Agency Portal and create a project profile with the award details. L&I will then prompt your awarded contractor to submit the master intent for the project.
Before making a payment on any public works contract, it is a best practice to check the PWIA portal and confirm all intents, any affidavits, and weekly certified payroll report are filed.
If the small works project award amount is less than $5,000, a combined intent/affidavit form can be used (see RCW 39.12.040(2)). This option is selected when the project is set up in the PWIA.
For more information, see our page on Prevailing Wages.
Bonds and Retainage
Bid guarantees (bid bonds), retainage, and performance and payment bonds are generally required for all public works projects. The small works roster statutes do not address bid guarantees (bid bonds), so agencies and local governments must follow their specific statutes and/or policies. (See our page on Guarantees, Bonds, and Retainage.)
For retainage and performance/payment bonds, there are some options that may apply to small works roster contracts.
- For projects with an estimated cost under $5,000: Retainage and performance/payment bonds are optional (at the agency’s discretion). See RCW 39.04.152(5).
- For projects with an estimated cost of $5,000 to $150,000: Retainage is required, but the awarding agency may reduce or waive the retainage requirements and assume liability for the contractor’s nonpayment, taxes, increases, or penalties. See RCW 39.04.152(5). Also, the contractor may request that the awarding agency withhold 10% retainage in lieu of the performance and payment bond. See RCW 39.08.010(3).
- For projects with an estimated cost of $150,000 to $350,000: Retainage is required, but the awarding agency may reduce or waive the retainage requirements and assume liability for the contractor’s nonpayment, taxes, increases, or penalties. See RCW 39.04.152(5). Performance and payment bonds are required.
For more information on this topic, see our page on Guarantees, Bonds, and Retainage.
Understanding Small Works Solicitation Options
The small works solicitation options will depend on the estimated project cost.
- For work with an estimated cost between $150,000-$350,000, excluding sales tax: You must conduct a competitive bid and send an Invitation to the entire List of Businesses (project-specific roster) generated for your project. For details, see our page Competitive Bidding for Small Works Contracts.
- For work estimated to cost less than $150,000, excluding sales tax: You may (optionally) "direct contract" without competition by sending an Invitation to Direct Contract/Negotiate to one contractor at a time. In order to direct contract, you must adopt procedures for contractor rotation/negotiation and establish a small business utilization plan. For more information, see our page Direct Contracting for Small Works. Alternatively, you may use the competitive bidding process described above.
Summary of Small Works Roster Contracting Options
Below is a summary of options under the small works roster process, provided that no federal funds are being used. For federal funding restrictions, see the next section.
| Est. Project Cost | Solicitation Method(s) | Retainage | Performance & Payment Bonds | Intents, Affidavits, and Certified Payroll |
|---|---|---|---|---|
| $5,000 or less | (1) Direct contract with rotation (if authorized by local policy), or (2) Competitive bid by inviting all contractors on project-specific roster |
Optional | Optional | Combined intent/affidavit form allowed Certified payroll required |
| $5,000 to $150,000 | (1) Direct contract with rotation (if authorized by local policy), or (2) Competitive bid by inviting all contractors on project-specific roster |
Required, but local government may reduce or waive based on risk assessment | Required, but local government may withhold 10% retainage in lieu of P&P bonds at contractor's request | Separate intents & affidavits required Certified payroll required |
| $150,000 to $350,000 | Competitive bid by inviting all contractors on project-specific roster | Required, but local government may reduce or waive based on risk assessment | Required | Separate intents & affidavits required Certified payroll required |
Federal Funding and Small Works
Federal procurement guidance (2 CFR §200.318-200.327) does not address the small works roster process as allowed for in state statute. You should proceed with caution if you plan to use the small works roster process to procure under federal awards.
Your procurement policy must address the procedures to use when using federal financial assistance, and you must comply with the strictest of the federal, state, and local requirements.
Federal procurement rules typically require formal bidding and public advertisement for any procurement of property or services that exceeds your “simplified acquisition threshold.” You must establish your simplified acquisition threshold in your local documented procurement procedures based on internal controls, an evaluation of risk, and your procurement procedures, but the simplified acquisition threshold may not exceed $350,000. (The simplified acquisition threshold increased from $250,000 to $350,000 effective October 1, 2025.)
A competitive small works roster process might be allowable for contracts below your simplified acquisition threshold using the federal “simplified acquisitions” rules in 2 CFR §200.320. (Simplified acquisitions was called "small purchases" for awards made before October 1, 2024.)
Federal procurement standards do not allow the use of direct contracting under the small works roster process, unless the value of the procurement is less than your micro-purchase threshold. Your micro-purchase threshold is established in your written procurement procedures in accordance with 2 CFR §200.320 and generally may not exceed $2,000 for public works and $15,000 for purchases/services. However, higher thresholds are possible if you comply with the terms of the regulations.
Individual federal awards or awarding agencies may have additional or modified rules. Refer to program legislation, federal awarding agency regulations, and the terms and conditions of the federal award.
MRSC encourages local governments to work closely with your legal counsel and federal award administrators to determine the allowable contracting methods and procurement compliance requirements for any federal award.
Examples of Small Works Roster Bidding Documents
Below are selected examples of small works roster invitations to bid and other bidding documents. We will be adding to this section soon.
- Spokane County Small Works Roster ITB Template (2024) – Template for small works roster invitations to bid. Includes supplemental evaluation items for cash discounts, time for completion, 10% retainage in lieu of contractor's bond, and supplemental bidder responsibility criteria
