Bill > HB954

This bill, concerning State Finance and Procurement, mandates that any undisputed retention proceeds, which are portions of payments withheld from contractors or subcontractors as security, must be paid out within 90 days after the substantial completion of a project, as defined by the contract. This applies to retention proceeds held by a state unit or a contractor under a State procurement contract for construction. The bill also clarifies that this provision does not prevent contractors or subcontractors from withholding additional amounts if there are reasonable grounds to believe a lower-tier subcontractor's performance is deficient, beyond the standard retention percentage.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0954?ys=2026RS