Bill > HB74

This bill modifies state procurement laws to require contract modifications for certain long-term and high-value contracts. Specifically, for construction contracts lasting three years or more and valued over $2,000,000, a clause must be included that allows for contract adjustments to cover increased costs of compensation and benefits if statutory changes mandate higher pay or benefits. Similarly, procurement contracts for security services that meet the same duration and value thresholds will also require a modification clause to account for increased compensation and benefit costs resulting from either statutory changes or collective bargaining agreements. Any contract modified under these new provisions will be subject to approval by the Chief Procurement Officer, and these changes are set to take effect on October 1, 2026.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0074?ys=2026RS