Bill > SB403

This bill modifies Maryland's state procurement laws for construction and service contracts by requiring the inclusion of a specific contract modification clause. Under the new provision, procurement contracts must now include language that allows for an equitable adjustment to the contract's costs if there are statutory changes that increase compensation or benefits, or if new collective bargaining agreements result in increased compensation or benefits. This means that if laws are passed or labor negotiations occur that require higher wages, benefits, or other compensation for workers, contractors can seek to modify their existing government contracts to account for these increased costs. The bill applies to both construction and service contracts, ensuring that contractors are not financially disadvantaged by legislative or negotiated changes to worker compensation. The provisions will take effect on October 1, 2025, giving state agencies and potential contractors time to prepare for and implement these new contract requirements.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0403?ys=2025RS