Maryland HB954 revises state procurement contract rules on retainage and payment security.

Maryland HB954 amends state procurement contract rules, allowing primary procurement units and the Maryland Transportation Authority to deposit retainage in an interest-bearing escrow account. It prohibits contractors and subcontractors from retaining more than the percentage of payments retained by the primary procurement unit or the Maryland Transportation Authority. Undisputed retention proceeds must be paid within 30 days after substantial completion. The bill also allows withholding additional amounts if performance provides reasonable grounds for withholding.

Maryland HB954 revises state procurement contract rules on retainage and payment security.

Maryland HB954 amends state procurement contract rules, allowing primary procurement units and the Maryland Transportation Authority to deposit retainage in an interest-bearing escrow account. It prohibits contractors and subcontractors from retaining more than the percentage of payments retained by the primary procurement unit or the Maryland Transportation Authority. Undisputed retention proceeds must be paid within 30 days after substantial completion. The bill also allows withholding additional amounts if performance provides reasonable grounds for withholding.