Several pieces of legislation affecting public works contracting and labor requirements moved through the 2026 General Assembly with notable revisions that significantly reduced potential impacts on counties and other local governments. While introduced with broader requirements, HB 569 (Feggans) / (SB 518 Rouse) and HB 1046 (Carr) / SB 324 (McPike) were all amended during the legislative process to better reflect practical implementation concerns raised by VACo and local partners such as the Virginia Association of Governmental Procurement.
HB 569 and SB 518 as introduced, created potential liability for contractors and subcontractors for prevailing wage violations, including liquidated damages enforced by the Department of Labor and Industry. VACo raised concerns and testified in committee that the proposal could increase project costs for local governments, create uncertainty in procurement, and shift compliance risk indirectly onto localities. The bills were ultimately amended to limit the scope and preserve the ability of local governments to opt in to the provisions of legislation, rather than mandated compliance and creating an unfunded liability. Both bills passed the General Assembly on a vote of 62-35 in the House of Delegate and a vote of 21-17 in the Senate. The legislation now awaits action from the Governor.
As introduced, SB 324 and HB 1046 proposed to expand requirements on contractors and subcontractors involved in public construction projects, including additional compliance and documentation mandates tied to public works contracts under the Virginia Public Procurement Act. VACo and local partners raised concerns that the initial proposals would increase administrative burdens, delay project delivery, and expose local governments to compliance risk. The amended versions of the legislation now focus more narrowly on contractor compliance rather than imposing broad new administrative responsibilities on localities. Both bills passed the General Assembly by similar vote margins to the previously mentioned legislation and as also await action by the Governor.
VACo actively engaged throughout the session to ensure that these proposals did not impose unfunded mandates or disrupt local procurement practices. VACo is grateful to the Virginia Association of Governmental Procurement and others for their partnership in working on these issues. The final legislative outcomes in the General Assembly reflect meaningful improvements over the version of the bills as originally introduced. VACo supports enhanced local authority and autonomy in matters including procurement and other issues of local concern.
VACo Contact: Jeremy R. Bennett