Awarding Agencies

Awarding entities that must adhere to Apprentice Utilization Requirements (AURs) are defined in RCW 39.04.010 and include:

• State agencies.
• School districts.
• Four-year institutions of higher education.
• Municipalities.

AURs do not apply to contracts awarded by state agencies headed by a separately elected public official or housing authorities as defined in RCW 35.82.020.

Awarding agency responsibilities

Awarding agencies and municipalities are responsible for the following items on public works projects that have AURs:

• The contract must contain the following:
  • The requirement for 15% apprentice utilization. This language should also be included in advertisement for bid and bid documents.
  • Monetary penalties* for not meeting the 15% apprentice utilization goal.
  • Monetary incentives for meeting the 15% apprentice utilization goal

* The Washington State Department of Transportation may use its three strike system for ensuring compliance.

• There must be an expected cost value included in the bid associated with meeting the AURs.
• Awarding agencies and municipalities are responsible for monitoring apprentice utilization hours on the project.
• Good faith effort requests can only be approved or denied by the awarding agency or municipality.
• If the project did not reach 15% apprentice utilization and there is not an approved good faith effort, the monetary penalty outlined in the contract must be assessed to the prime contractor.
• Beginning July 1, 2026, the contracting agency must receive an Apprentice Utilization Plan from the prime contractor before giving notice to proceed in accordance with RCW 39.04.350 (3)(a) and (b).
  • The apprentice utilization plan must be the version found on the AUR Training and Additional Resources tab unless the Department has approved a contracting agency’s plan.

Contractors

Prime contractors are responsible for ensuring apprentice utilization requirements (AURs) are met on public works projects to include performance of subcontractors. There is no requirement for every contractor/subcontractor on the project to reach 15% apprentice utilization. The labor hours for apprentices must meet 15% of the total labor hours on the project to meet the requirement.

The prime contractor may request a good faith effort from the contracting agency when a project falls short of 15% utilization. The request must be in writing and the contracting agency has approval and denial authority. If denied, the monetary penalty included in the contract will be assessed to the prime contractor. See the ‘Good Faith Efforts and Monetary Penalties’ page for more information.

Apprentice labor on public works projects

A contractor must have a Washington State Apprenticeship Training Council (WSATC) approved apprenticeship program or be a registered training agent for a WSATC approved program in order to use apprentices that count toward the apprentice labor.

• Approved apprenticeship programs would include programs with registered apprenticeship programs in states with Washington reciprocity.
• Approved apprenticeship programs would include programs with reciprocity approved by the WSATC.

Contractors must use apprentices in compliance with ratio, supervision, and work process requirements found in the apprenticeship program standards.

Please visit the Apprenticeship for Employers page for more information on starting an apprenticeship program or joining an existing program as a training agent.

Good Faith Efforts and Monetary Penalties

A 15% apprentice utilization requirement must be included in contracts for all public works projects subject to RCW 39.04.320. The Good Faith Effort (GFE) process is used to lower the acceptable utilization percentage on a project. The official apprentice utilization percentage comes from the affidavits filed for the project, not from certified payroll or any third-party tracking system.

The GFE process works as follows:

• The prime contractor submits a GFE request in writing. It must detail the reason(s) the project did not reach the 15% utilization requirement and provide documentation to verify the claims.
• The GFE request and supporting documentation is submitted to the contracting agency prior to filing the notice of completion.
• The contracting agency can approve or deny the request based on their GFE criteria.
• Approved GFEs need to be loaded into the Prevailing Wage Intents & Affidavits system (awarding agency or contractor portals) for that project.

RCW 39.04.320 (2) outlines GFE criteria. If something falls under the ‘other’ category, be sure there is documentation to verify the reason(s). For example, if a contractor may only use their employees during installation to maintain a warranty, the portion of the warranty that states this needs to be submitted with the GFE request.

Approved GFEs are subject to review by the Office of the Governor or a municipality’s legislative authority.

Monetary Penalties

Contracts for public works projects covered under RCW 39.04.320 are required to have monetary incentives and penalties regarding apprentice utilization. While the amount is at the discretion of the awarding agency, the intent of monetary penalties is to encourage the prime contractor to attain the 15% apprentice utilization on a project. Penalties are only assessed if the project does not reach the 15% mark and there is no approved GFE.

Penalties can be designed as a flat penalty, or as a ‘stepped’ amount, but should be set in a manner that will encourage apprentice utilization.

Example: A $3 million project with a $1,000 penalty will likely not encourage a contractor to look for apprentice utilization. A 0.5% penalty, approximately $15,000 on a $3 million project would have a far better impact.

Another example is a stepped penalty system. Some examples include:

The contract could specify a $2,000 (or any flat amount) penalty for each percentage point the projects ends below 15%, or a .1% penalty for each point below the 15%;

A flat penalty or percentage for each $1 million of the contract price; or

A flat amount for each apprentice hour the project falls short. For example, $20 for each hour the project falls short of 15%.

Monetary incentives may also be set at a rate that will encourage apprentice utilization.

AUR Training and Additional Resources

Upcoming AUR training:

• Dates coming soon!

RCWs and WACs related to apprentices and apprentice utilization on public works projects.

RCW 39.04.010 Definitions

RCW 39.04.310 Apprenticeship training programs – Definitions

RCW 39.04.320 Apprenticeship training programs - Public works contracts - Adjustment of specific projects - Report and collection of agency data - Apprenticeship utilization advisory committee created

RCW 39.04.350 Bidder responsibility criteria - Sworn statement - Apprentice utilization plan - Supplemental criteria

WAC 296-05 Apprenticeship Rules

Apprentice Utilization Plan

• Coming soon!

Legislative items:

None at this time.

Additional resources:

Renewable Energy Projects

The Washington State Apprenticeship Training Council (WSATC) establishes minimum levels of apprentice labor hours to be met through apprenticeship programs so that utilities can qualify for renewable energy credits as defined in RCW 19.85.040.

• The WSATC certifies a renewable energy project meets the required minimum when an applicant can show:
• A minimum of fifteen percent of the total labor hours used to construct the project are apprentice hours;
• Labor hours meet the definition in RCW 39.04.310(3). Hours worked by foremen, superintendents, owners, and workers who are not subject to prevailing wages must be reported and included in the total labor hours if the foreman, superintendent, or worker is counted in satisfying the required apprentice to journey supervision ratio as required by apprenticeship standards;
• The applicant requests certification within forty-five days of the start of the on-site construction for the project.

Requests for certification are filed with the Apprenticeship section at the Department of Labor & Industries and heard by the WSATC at the next regular quarterly meeting. Requests for certification must include:

• The name, occupational title, and registration number for each registered apprentice;
• The number of apprentices and labor hours worked, categorized by occupational title and employer;
• The number of journey level workers and labor hours worked, categorized by occupational title and employer;
• Copies of weekly or monthly reporting forms and certified payroll records used to capture the required information;
• A statement affirming the hours reported meet the definition of "labor hours" as defined by subsection (2)(b) of this section.

The Apprenticeship section reviews requests for certification and recommends to the WSATC whether the request should be granted.

• The WSATC decides whether requests for certification are granted within thirty days from the date the matter is heard at the quarterly meeting. The WSATC can:
  • Grant the request for certification;
  • Deny the request for certification;
  • Defer the request for certification and ask for additional information.
• If the request is granted, the WSATC certifies the apprentice labor hours on the project.
• If the request is denied, the aggrieved party may file an appeal pursuant to chapter 34.05 RCW.

This information is found in WAC 296-05-207.