Bill > HB552

This bill amends the State Finance and Procurement law to limit the percentage of retainage (the amount withheld from payments to contractors) to 5% on state construction contracts where the contractor has provided 100% payment and performance security. It also requires the state and the contractor to pay out any undisputed retention proceeds within 90 days of substantial completion of the project. Additionally, the bill specifies that any retainage held in an escrow account must include a pro-rata portion of the interest earned. This bill aims to provide more timely payments to contractors and subcontractors working on state construction projects.

Health and Social Services

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0552?ys=2022RS