Marvin Mandel, Governor                       1065

9-112. Protection of materialmen and subcontractors on State
projects—"Little Miller Act."

(a)    Payment and Performance Bonds.

Before any contract exceeding five thousand dollars ($5,000)
in amount, for the construction, alteration, or repair of any
public building or public work or improvement of the State
of Maryland, or of any county, city, municipal corporation, town,
board of education or other political subdivision, public authority,
or public instrumentality, or any officer, board, commission, or agency
of any of the foregoing, is awarded to any person, he shall furnish
to the State of Maryland, or to such county, city, municipal cor-
poration, town, or other political subdivision, public authority, or
public instrumentality, or to such officer, board, commission, or agency
thereof, the following bonds which shall become binding upon the
award of the contract to such person, who is hereinafter designated
as "contractor":

(1)    A performance bond executed by a surety company author-
ized to do business in this State satisfactory to the public body
awarding the contract, and in such amount as it shall deem adequate,
for the protection of the public body.

(2)    A payment bond executed by a surety company authorized
to do business in this State satisfactory to the public body for the
protection of all persons supplying labor and materials, including
lessors of equipment to the extent of the fair rental value thereof,
to the contractor or his subcontractor in the prosecution of the
work provided for in the contract for the use of each such person.
The bond shall be in the amount not less than fifty per centum (50%)
of the total amount payable by the terms of the contract. Any
contractor covered by such a bond shall not be required to furnish
a waiver of mechanics' liens to the State. Any contractor prior
to receiving a progress or final payment under a contract covered
hereunder shall certify in writing that he has made payment from
proceeds of prior payments, and that he will make timely payments
from the proceeds of the progress or final payment then due him,
to his subcontractors and suppliers in accordance with his con-
tractual arrangements with them.

(b)    Authority to require additional bonds.

Nothing in this section shall be construed to limit the authority
of the State of Maryland or other public body hereinabove mentioned
to require a performance bond or other security in addition to those,
or in cases other than the cases specified in subsection (a) of this
section.

(c)    Suits on payment bonds—Right to institute.

Every person who has furnished labor or material in the prose-
cution of the work provided for in such contract, in respect of
which a payment bond is furnished under this section and who has
not been paid in full therefor before the expiration of a period of
ninety days after the day on which the last of the labor was done
or performed by him or material was furnished or supplied by him
for which such claim is made, shall have the right to sue on the
payment bond for the amount, or the balance thereof, unpaid at the
time of institution of such suit and to prosecute said action to final