HARRY HUGHES, Governor
2591
CHAPTER 479
(House Bill 1336)
AN ACT concerning
Procurement Law - Bonds
FOR the purpose of altering the threshold dollar amount over
which certain procurement contracts require performance,
payment, or bid bonds; and providing that certain local
governmental entities may require certain bonds when
awarding certain construction contracts.
BY repealing and reenacting, with amendments,
Article 21 - Procurement
Section 3-501, 3-502, 3-503, and 3-504
Annotated Code of Maryland
(1981 Replacement Volume and 1983 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article 21 - Procurement
3-501.
(a) [Before] EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS
SUBSECTION, BEFORE any construction contract exceeding [$25,000]
$50,000 in amount is awarded by the State of Maryland, or 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, 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 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 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
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