The Construction Counselor

Iowa’s 2026 legislative session, which has now ended, resulted in several new laws relevant to the construction industry that will go into effect July 1, including laws that impact notice requirements for public construction projects, Iowa’s electrical code, radon mitigation systems in newly built homes and apprenticeship programs. Below is a high-level overview of each construction-related bill from this legislative session.

New Notice by Public Owners of Final Acceptance on Public Construction Projects

SF 2365, which was signed into law by Governor Reynolds on May 15, 2026, implements a new notice requirement, after final acceptance of a project, for public owners where subcontractors have filed Chapter 573 claims on the project. Currently, the law provides that subcontractors who have filed a Chapter 573 claim must file a lawsuit to enforce the claim between 30 to 60 days following final completion and acceptance of the project by the owner. SF 2365 requires public owners to send written notice of the date of final acceptance to the principal contractor, the surety and any claimant who has filed a Chapter 573 claim, thereby eliminating the difficulty for subcontractors — without direct contracts with the owners — in determining when the 30-to-60-day period to file an enforcement suit begins, as they oftentimes did not have a direct line of communication to the owner and did not otherwise receive information on when the owner voted to formally accept the completed project. Under this new law, public entities must send notice within 14 calendar days of the final acceptance. The bill does not mandate a specific notice method for owners, so owners have discretion to choose an appropriate method. This bill goes into effect July 1.

The bill also provides that public entities are not liable for any claims or damages based on or arising out of the failure to comply with the notice requirement.

Fredrikson attorneys Jodie McDougal and Philip Bubb serve on the Iowa State Bar Association’s Construction Law Section Council, which assisted in drafting this bill.

Prohibition Against Local Codes Being More Restrictive Than National Electrical Code

On June 2, 2026, Governor Reynolds signed into law House File 2800, which prevents cities and counties in Iowa from adopting local electrical codes that are more restrictive than the National Electrical Code. This is welcome news for electrical contractors.

The new law also makes several smaller amendments to the statewide electrical code, which will be in effect until the next statewide code is adopted. The amendments generally address the placement of receptacles in kitchens and bathrooms, as well as ceiling outlets and ceiling-suspended paddle fan outlets.

Passive Radon Mitigation Systems Now Mandated in New Homes

House File 2297, which was signed into law by Governor Reynolds on May 19, 2026, requires the state building code to be amended to mandate implementation of passive radon mitigation systems in all new single-family or two-family homes. On June 25, 2026, the Iowa Department of Inspections, Appeals, and Licensing (DIAL) provided clarity on how and when the new law will be enforced. According to DIAL, HF 2297 requires the Iowa State Building Code Commissioner to add a passive radon mitigation requirement to the state building code but does not independently create any enforceable passive radon mitigation requirement. DIAL also clarified that the passive radon mitigation requirement, once adopted, will apply to all new single-family or two-family residential construction in Iowa, but only if the construction commences after the Commissioner’s adoption of the new requirement.

Thus, while the law goes into effect on July 1, the law merely requires the state building code to be amended in the future, and the state building code will be amended to require passive radon mitigation systems at a future date. As such, the situation remains in flux until the Commissioner adopts the new requirement.

As most homebuilders already install passive radon mitigation systems in new homes, this law will likely have little impact on the industry.

Apprenticeship Programs

Also, Senate File 2168 was signed into law on June 2, 2026. The Act allows licensed plumbing or mechanical contractors to employ no more than three apprentices to one licensee, matching ratios for electrical apprenticeships. The Act also sets restrictions on the cancellation or suspension of an apprenticeship program by requiring Iowa Workforce Development to provide a written explanation and allow a period for the program to cure any violations. If an apprenticeship program is disciplined, the program may appeal directly to the court, and the burden of proof lies with Iowa Workforce Development.

Vetoed Bill: SUDAS

Finally, this year, there was one construction-industry bill that was passed by both legislative chambers but was ultimately vetoed by Governor Reynolds — House File 2667.

This bill pertained to the Iowa Statewide Urban Design and Specifications (SUDAS) corporation, which is managed by the Institute for Transportation at Iowa State University and is responsible for developing statewide urban design standards and specifications. This bill would have altered the Board make-up of SUDAS to require inclusion of one member appointed by various associations, including the Home Builders Association of Iowa, Associated General Contractors of Iowa, Master Builders of Iowa, Iowa Real Estate Developers Association, Associated Builders and Contractors of Iowa and the Iowa Concrete Paving Association, among others. The bill also included a provision requiring managers of city street projects to submit a report to the city council if the project did not comply with design standards and specifications. The bill passed both the House and the Senate but was vetoed by Governor Reynolds on June 2, 2026.

Key Takeaways

• On public projects, public owners must now send a written notice of the date of final acceptance of a public improvement within 14 calendar days of final acceptance to the principal contractor, the surety and any claimant who has filed a Chapter 573 claim.
• New legislation amends the statewide electrical code, requires the Iowa State Building Code Commissioner to adopt a passive radon mitigation system requirement for new single- and two-family homes, and sets ratios and notice requirements for mechanical and plumbing apprenticeships.
• Legislation adding requirements for the SUDAS Corporation Board make-up will not become law.

For more information or questions, contact Jodie McDougal.