2678

LAWS OF MARYLAND

Ch. 775

(a)  [Before any EXCEPT AS OTHERWISE PROVIDED IN
THIS SUBTITLE, BEFORE ANY CONSTRUCTION contract exceeding
[five thousand dollars ($5,000)] $5,000 $25,000 in amount[,
for the construction, alteration, or repair of any public
building or public work or improvement of] IS AWARDED BY the
State of Maryland, or [of] BY 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
corporation, 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 authorized to do business in this State, OR THE
EQUIVALENT IN CASH, OR IN A FORM OTHER SECURITY 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, OR THE EQUIVALENT
IN CASH, OR IN A FORM OTHER SECURITY 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%)] 50 PERCENT 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
contractual arrangements with them.

(b)  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)  Every person who has furnished labor or material
in the prosecution of the work provided for in such
contract, in respect of which a payment bond OR OTHER
SECURITY is furnished under this section and who has not
been paid in full therefor before the expiration of a period
of [ninety] 90 days after the day on which the last of the
labor was done or performed by him or material was furnished