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Bill > HB1499


MD HB1499

MD HB1499
State Procurement - Construction and Services - Contract Modification


summary

Introduced
02/13/2025
In Committee
03/17/2025
Crossed Over
03/17/2025
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Requiring a procurement contract for 3 years or more in duration and valued at greater than $1,000,000 for construction or security services to include a clause requiring contract modification for increased costs for compensation and benefits as a result of statutory changes increasing required compensation or benefits or collective bargaining; and requiring a certain contract that is modified to be contingent on approval by the Board of Public Works.

AI Summary

This bill modifies Maryland state law regarding procurement contracts for construction and security services by requiring specific contract modification clauses for contracts lasting 3 years or more and valued over $1,000,000. These clauses mandate that the contract can be adjusted to account for increased compensation and benefits costs resulting from two primary scenarios: statutory changes that increase required compensation or benefits, and collective bargaining agreements. The bill applies to both construction contracts and security services contracts, ensuring that long-term, high-value contracts have built-in flexibility to address potential cost increases related to workforce compensation. Any contract modification under these provisions would require approval from the relevant board, providing a structured process for contract adjustments. The bill is set to take effect on October 1, 2026, giving state procurement agencies time to implement these new requirements in their contract templates and processes.

Committee Categories

Budget and Finance, Government Affairs, Health and Social Services

Sponsors (24)

Last Action

Senate Budget and Taxation Hearing (13:00:00 3/26/2025 ) (on 03/26/2025)

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