Should sales tax be included in the calculation of retainage for a public works project?

No. RCW 60.28.011 provides that there shall be reserved by the public body a percentage from the "moneys earned by the contractor" on the project. "Moneys earned" on the contract do not include sales tax. Therefore, the city should retain only the statutory percentage of the contract price and not any percentage of sales tax. • Is a performance bond required when a city is undertaking a public works project in an emergency situation where it is avoiding competitive bidding procedures? Unless it is an "extreme emergency" (e.g., fire, earthquake, flood) that falls under the provisions of Ch. 38.52 RCW, a performance bond is probably still required. The requirement of a performance bond in RCW 39.08.010 is separate from competitive bidding requirements in RCW 35.23.352 or RCW 35.22.620. The exemption from competitive bidding requirements in RCW 39.04.280(1)(e) in the event of an emergency does not address performance bonds. However, for extreme emergencies, RCW 38.52.070(2) provides: ...  more