Bill > HB1336

This bill modifies laws governing payments for procurement contracts and construction contracts, extending certain provisions to local government owners and clarifying payment timelines and consequences for late payments. Specifically, it requires that if a payment is withheld, the party withholding it must notify the other party in writing within 15 days, explaining the specific reasons and the amount withheld, and the withheld amount cannot exceed twice the disputed sum. The bill also mandates that interest at a rate of 2% per month will accrue on unpaid amounts, starting 61 days after an invoice is received, and this interest cannot be waived or altered by contract. For construction contracts, it requires contractors and subcontractors to pay their subcontractors and lower-tier subcontractors within 7 days of receiving payment for their work, also with provisions for notification and interest on late payments. The bill also clarifies that these payment and interest requirements cannot be waived by contract and will take effect on October 1, 2026.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1336?ys=2026RS