How to choose a waterfront home builder in Seattle and on the Eastside

Choose a waterfront home builder in this order. First, confirm each builder’s state registration on the Department of Labor and Industries (L&I) Verify page. Second, give each one the same complete drawing set and compare bids on equal scope. Third, have an attorney read a written contract that carries the disclosure statement Washington requires. Registration is a floor: a bond, insurance and workers’ comp coverage for any employees, with no test of how well someone builds on a bank above a lake. I am David Meade of Piper Cole Architects in Kirkland. I design waterfront homes and administer construction for the owner. I do not build and I recommend no builder, so this page names none.

I read the statutes, rules and agency pages below on 27 October 2026. Laws change and I am not your attorney, so confirm anything that moves money with counsel. The shoreline rules are in my Lake Washington and Lake Sammamish pages, and my general contractor guide covers any Eastside builder. This page adds what changes at the water.

What state registration proves and what it does not

Every contractor must register with L&I, and advertising, bidding or working without registration is a gross misdemeanor (RCW 18.27.020). The definition reaches anyone who bids to construct or improve any building, excavation or “other structure, project, development, or improvement attached to real estate,” and it names tree removal (RCW 18.27.010(1)(a)). So ask the dock, bulkhead, shoring and tree contractors for a registration number too.

The application asks for a tax identity, a Unified Business Identifier (UBI) number, workers’ comp evidence and the contractor type (RCW 18.27.030(1)). It lists no examination of building skill. The protections are a surety bond of $30,000 for a general contractor and $15,000 for a specialty contractor (RCW 18.27.040(1), amounts effective July 1, 2024), and insurance of at least $50,000 for property damage, $100,000 for injury or death to one person and $200,000 for more than one person (RCW 18.27.050(1)).

Set the bond beside a lakefront budget. It is shared by every customer, worker, supplier and tax claim against that contractor, and the notice a contractor must give you says it “might not be sufficient to cover a claim” (RCW 18.27.114(1)).

Project budget	General contractor bond	Bond as a share of the budget
$750,000, my smallest project	$30,000	4.0 percent (30,000 divided by 750,000)
$1,200,000, low end of a 2,500 sq ft custom home, all in	$30,000	2.5 percent (30,000 divided by 1,200,000)
$2,500,000, high end of the same home, all in	$30,000	1.2 percent (30,000 divided by 2,500,000)

Budgets are Piper Cole planning figures. The shares are my arithmetic. A specialty contractor posts half as much.

Three more points matter to a lake owner. A suit on the bond by a residential homeowner, meaning someone who will live in the house, must be filed within two years of substantial completion or abandonment. Other claimants get one year, so an owner holding the lot in an LLC or building a second home should ask L&I which period applies (RCW 18.27.010(10), 18.27.040(3)). Since July 1, 2026 a homeowner recovery program can pay up to $25,000 per contractor per parcel, but only for an owner occupied primary residence, after a final judgment and a claim on the bond, and payment is discretionary and subject to funds (RCW 18.27.410). A contractor may not advertise that they are bonded and insured on the strength of the required bond and insurance (RCW 18.27.100(4)), so ask for the certificate.

How to look a builder up

1. Get the name, registration number and UBI number. Advertising must show the current registration number (RCW 18.27.100(3)).
2. Run it on L&I’s Verify page (secure.lni.wa.gov/verify), by contractor license number, UBI number or business or owner name. It shows whether the registration is active, whether the workers’ comp account covering any employees is active and paid to date, citations, safety violations and lawsuits against the bond. L&I does not guarantee that the database is accurate.
3. Look up the trades. Verify also shows whether an electrician or plumber is certified.
4. Read the insurance certificate. A contractor who posted an assigned account instead must tell every bidder that a claimant then needs a court judgment (RCW 18.27.050(3)(c)).
5. Check the permit. A city or county may not issue a building permit without verifying the contractor’s registration, and must print the number on the permit and give the applicant a written notice about the risk of an unregistered contractor (RCW 18.27.110).

Registration does not show who has built on a lakefront, so ask for finished lakefront houses in your city and call those owners. For a house built before 1978, EPA also requires firms paid to disturb painted surfaces to be lead safe certified. L&I advises getting at least three written bids.

Why a shoreline lot needs a permitted set before bids

A builder who prices a lakefront house from sketches is pricing a guess.

• The exemption does not remove the program. An exemption from the shoreline substantial development permit is not an exemption from the local master program, and if any part of a project does not qualify, the whole project needs the permit (WAC 173-27-040(1)(b), (d)).
• Work in the water has its own approval. Work that will use, divert, obstruct or change the bed or flow of state waters needs a Hydraulic Project Approval from the Department of Fish and Wildlife before it starts (RCW 77.55.011, 77.55.021). The application must include complete plans and specifications for work inside the ordinary high water line. The department generally has 45 calendar days from a complete application and may condition the approval to protect fish life. It lasts up to five years, with substantial progress required within two (RCW 77.55.021(2), (7), (9)).
• A shoreline permit has a waiting period and a clock. Construction cannot begin until 21 days after the decision is filed, or until any appeal ends (RCW 90.58.140(5)). Under a substantial development permit, variance or conditional use, work must start within two years and authorization ends five years after the effective date, with one extension of up to a year possible for each (WAC 173-27-090). A permit can be rescinded for noncompliance with its conditions (RCW 90.58.140(8)).

So I would not ask for firm prices until the survey, the shoreline decision and the building permit set agree, because conditions of approval change the drawings and the price.

What the drawings hand over and who pays for what

My fixed fee covers design to permit submission, about $10,000 to $200,000 depending on the project budget and location. The builder’s construction price is separate. A bid set for a shoreline lot should hold the survey with the ordinary high water mark and setback line, the drawings and specifications as submitted, each approval as it issues, the consultant reports, and a written allowance schedule.

Then put one name beside each of these lines before anyone signs: city building and shoreline fees, the survey, soils work, the arborist, temporary power and erosion control, sales tax, and the dock or bulkhead contractor. Two bids can differ by these lines alone.

Bids on equal scope

Hold this equal	Why it moves the number	What to write down
Documents	Different drawings or notes produce different prices.	One set for every bidder, and every answer sent to all in writing.
Allowances	A low allowance makes a bid look cheaper and moves the cost to later.	The same dollar figure for each allowance.
Exclusions	Builders leave out different items: soils work, shoreline structures, planting, site access.	A side by side list of exclusions, priced so totals compare.
Sales tax	The Department of Revenue presumes a quoted price excludes retail sales tax unless it is itemized, and the words “tax included” do not overcome that.	Tax as its own line in every bid.
Schedule and staff	Start dates depend on the approvals above.	A schedule that names the approvals it assumes, and who runs the site.
Contract form	Fixed price and cost plus move risk to different people.	Which form, and who carries a hidden condition.

Sales tax: Department of Revenue custom construction guide, citing RCW 82.08.050. More on leveling bids is in my million dollar remodel guide and build estimate guide.

L&I also suggests considering a performance bond on a larger project. It is separate from the registration bond, so have each bidder price it as its own line.

What Washington requires in your paperwork

In chapter 18.27 I found no list of terms a residential contract must contain and no required change order clause. Other laws may add requirements, so an attorney should check. What chapter 18.27 and the lien chapter do require:

1. A signed disclosure statement before work starts on a project for up to four residential units priced at $1,000 or more (RCW 18.27.114(1)). It gives the registration number and expiry, the bond, the warning that the bond might not be enough, your right to withhold a contractually defined percentage as retainage, the warning that your property may be liened, and your right to ask for lien releases.
2. Proof it was given. The contractor keeps a signed copy for three years, must tell you if registration lapses during the job, and cannot enforce a lien claim without proving the statement was given (RCW 18.27.114(2) to (4)).
3. The name as registered on the contract (RCW 18.27.100(2)).
4. A posted jobsite notice from the prime contractor on a project costing more than $5,000, with the owner, the contractor’s registration number and the construction lender or payment bond firm, if any (RCW 60.04.230).

Price and form, payment schedule, allowances, change orders, schedule, warranty and how disputes are decided are yours to write with an attorney. Retainage helps only if the contract states the percentage and release date.

Liens, payments and the clocks that run

Anyone who furnishes labor, professional services or materials to improve real property has a lien for the contract price (RCW 60.04.021). Suppliers and lower tier subcontractors must send you a notice of the right to claim a lien, though laborers need not, and neither does a subcontractor hired directly by the prime contractor on a new house (RCW 60.04.031(2)). For a repair, alteration or remodel of an existing owner occupied single family residence, claimants who did not contract with you can be paid only from the part of the price you had not yet paid the prime contractor when the notice arrived (RCW 60.04.031(3)). For a new house, the state’s notice form says a lien may be claimed for what was supplied after a date ten days before the notice (RCW 60.04.031(1), (4)). Whether paying the builder cuts off a claim on a new house is a question for your attorney.

• Liens must be recorded within 90 days after the claimant stops furnishing (RCW 60.04.091), and lapse after eight months unless suit is filed (RCW 60.04.141).
• Lien releases must be signed on payment and your demand (RCW 60.04.071). Write releases from the builder, subcontractors and suppliers into every payment step. A lender funding the build is covered in my construction loan guide.
• Claims arising from construction or design are barred if they have not accrued within six years after substantial completion, meaning when the improvement may be used or occupied, or after the services end, whichever is later (RCW 4.16.310). The bond suit period is shorter, so raise problems early.

How construction administration works, and where it stops

I administer the construction contract for you. I do not build and I do not direct the builder’s crew. State law lets any person administer the construction contract for a residential building of up to four dwelling units (RCW 18.08.410(5)), and it exempts a licensed architect acting solely in a professional capacity from contractor registration (RCW 18.27.090(14)). You choose who does that work.

In the AIA’s standard general conditions, form A201-2017, the architect visits at intervals appropriate to the stage of construction but need not make exhaustive or continuous inspections (4.2.2), reviews payment applications and certifies amounts due (4.2.5), may reject work that does not conform to the contract documents (4.2.6), prepares change orders and construction change directives (4.2.8) and inspects for substantial completion (4.2.9). The contractor stays solely responsible for means, methods, sequences and jobsite safety (3.3.1). Your contract may differ, so read it. See what construction administration is and architect or design build.

What to ask every builder

1. What are your registration and UBI numbers, and may I see the bond and insurance certificate?
2. Who runs my site every day?
3. Which lakefront houses have you finished in this city, and may I call the owners?
4. When shoreline conditions change the drawings, who prices the change?
5. What does your bid exclude, which allowances does it carry, and is sales tax its own line?
6. Who are the foundation, shoring and dock subcontractors, and what are their registration numbers?
7. Will you provide lien releases from subcontractors and suppliers with each payment?
8. Is a payment bond or performance bond available, and at what premium?
9. What does your schedule assume about the shoreline and in-water approvals?

The process, in order

Step	Time or cost	What you get
Free feasibility check	About a day	A quick read on the lot and setback.
In-depth analysis, optional	$1,500, 2 to 3 weeks	Remodel and rebuild options side by side.
Design to permit submission	Typically 2 to 4 months	Design through permit submission, under the fixed fee.
Shoreline decision, then building permit	Set by the city and the scope	Written approvals, then the building permit. In Seattle a remodel permit can be obtained in about 2 to 3 months, a new house takes 6 to 10.
Bidding on the complete set	Your timeline	Bids from builders you have checked, on equal scope.
Construction administration	For the length of the build	I visit the site, answer the builder’s questions and check the work against the drawings.

I have been an architect since 1996, an AIA member since 1992 and an NCARB member since 1996, and I take on 20 to 30 projects a year. I have won three Masonry Excellence Awards, all for commercial projects, and the Carr residence was featured in Above The Lake and Lux magazines.

Questions

How do I check that a waterfront home builder is licensed in Washington?

Washington contractors register with the Department of Labor and Industries on the strength of a bond, insurance and workers’ comp coverage for any employees, and the application lists no skills test (RCW 18.27.030). Use the Verify page at secure.lni.wa.gov/verify and search by contractor license number, UBI number or business or owner name. It shows whether the registration is active, whether the workers’ comp account is paid to date, and any citations, safety violations or lawsuits against the bond. Do the same for the dock, bulkhead and tree contractors, because the registration law covers any improvement attached to real estate.

How much bond and insurance must a Washington contractor carry?

A general contractor must file a $30,000 surety bond and a specialty contractor $15,000 (RCW 18.27.040, amounts effective July 1, 2024). Insurance must be at least $50,000 for property damage, $100,000 for injury or death to one person and $200,000 for injury or death to more than one person (RCW 18.27.050). A contractor may post an assigned account instead of insurance, and must tell each bidder that a claimant would then need a court judgment.

Is the state contractor bond enough to protect a lakefront house project?

Usually not by itself. The $30,000 bond is shared by everyone with a claim against the contractor, and the state’s required notice says it might not be enough. On a $750,000 project it equals 4.0 percent of the budget, and on $2,500,000 it equals 1.2 percent. A residential homeowner must sue on the bond within two years of substantial completion or abandonment, and other claimants get one year. A state recovery program pays up to $25,000, but only on an owner occupied primary residence after a final judgment, so a second home may not qualify.

Does a waterfront builder need to have built on my lake before?

No law requires it, and registration does not test it. It is still worth asking, because the city’s shoreline program, the Hydraulic Project Approval for any in-water work and the conditions of your approvals all affect how the house is built. Ask each builder for finished lakefront houses in your city and call those owners. Ask who ran the site and how problems were resolved.

Why can’t a builder give a firm price on a waterfront house from sketches?

Because the approvals change the drawings. A shoreline exemption is not an exemption from the local master program, work in the water needs an approval that is applied for on complete plans, and a shoreline permit can carry conditions that the builder must follow. A price from sketches covers a house that may not be the one the city approves. Wait for the survey, the shoreline decision and the permit set to agree before you ask for firm prices.

What must a Washington residential building contract include?

Chapter 18.27 RCW requires that the contractor give you a disclosure statement before work starts on a project of $1,000 or more for up to four residential units, and that the contract show the contractor’s name as registered. I found no other list of required contract terms in that chapter. The price, payment schedule, retainage, allowances, change orders, schedule and warranty are for you and your attorney to write, and the attorney should check whether other laws add requirements.

Can a subcontractor put a lien on my lake house if I paid the builder?

Possibly, depending on the project. For a remodel of an existing owner occupied single family residence, a claimant who did not contract with you can be paid only from the part of the price you had not yet paid the prime contractor when its notice arrived. For a new house, the state’s notice form says a lien may be claimed for what was supplied after a date ten days before the notice. Ask for lien releases with each payment, and have an attorney or your title company confirm which rule applies.

Does Piper Cole recommend a waterfront builder or build the house?

No. Piper Cole designs the house and administers construction on your behalf, and it does not build and does not recommend a builder. You contract with the builder you choose. I answer the builder’s questions, visit the site and check the work against the drawings.