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ROBERT L. EHRLICH, JR., Governor S.B. 347
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(2) A SUBCONTRACTOR OF A CONTRACTOR MAY SATISFY A
REQUIREMENT TO PROVIDE A PERFORMANCE BOND OR OTHER SECURITY UNDER
PARAGRAPH (1) OF THIS SUBSECTION BY COMPLYING WITH § 17-103(A)(3) OF THIS
ARTICLE:
17-103.
(a) (1) Before a public body awards a construction contract exceeding
$100,000 $400,000, the contractor, AND EACH SUBCONTRACTOR OF THE CONTRACTOR,
shall provide payment security and performance security that meet the requirements
of § 17-104 of this subtitle.
(2) The security shall be:
(i) for performance security, in an amount that the public body
considers adequate for its protection; and
(ii) for payment security, at least 50% of the total amount payable
under the contract.
(3) A SUBCONTRACTOR OF A CONTRACTOR MAY SATISFY THE SECURITY
REQUIREMENT UNDER THIS SECTION BY:
(I) PROVIDING ITS OWN PAYMENT SECURITY AND PERFORMANCE
SECURITY; OR
(II) WITH THE APPROVAL OF THE CONTRACTOR AND ITS SURETY,
OBTAINING PAYMENT SECURITY AND PERFORMANCE SECURITY THROUGH THE
CONTRACTOR.
(b) A public body, other than the State or a unit of the State government, may
require payment security or performance security for a construction contract if:
(1) the contract exceeds $25,000 but does not exceed $100,000 $400,000;
(2) the amount of the security does not exceed 50% of the contract
amount:
SECTION 2. AND BE IT FURTHER ENACTED, That the Department of
General Services shall report to the Senate Education, Health, and Environmental
Affairs Committee and the House Health and Government Operations Committee on
or before November 1, 2007, on the implementation of this Act.
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take
effect October 1, 2005.
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May 26, 2005
The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis, MD 21401
- 3595 -
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