Maryland SB609 revises state procurement contract rules on retainage payments.

Maryland SB609 amends the State Finance and Procurement law to modify rules on retainage payments under state procurement contracts. It specifies that retainage withheld by a primary procurement unit or the Maryland Transportation Authority must be paid within a certain number of days after substantial completion. If retainage is placed in escrow, each payment must include interest. Contractors and subcontractors are restricted in the percentage of payments they can retain, but may withhold additional amounts if performance issues exist. The act takes effect October 1, 2026.

Maryland SB609 revises state procurement contract rules on retainage payments.

Maryland SB609 amends the State Finance and Procurement law to modify rules on retainage payments under state procurement contracts. It specifies that retainage withheld by a primary procurement unit or the Maryland Transportation Authority must be paid within a certain number of days after substantial completion. If retainage is placed in escrow, each payment must include interest. Contractors and subcontractors are restricted in the percentage of payments they can retain, but may withhold additional amounts if performance issues exist. The act takes effect October 1, 2026.