2592

LAWS OF MARYLAND

Ch. 479

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 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.

(3) ANY GOVERNMENTAL ENTITY SPECIFIED IN THIS
SUBSECTION, OTHER THAN THE STATE OF MARYLAND AND ANY OFFICER,
BOARD, COMMISSION, OR AGENCY OF THE STATE OF MARYLAND, MAY
REQUIRE PERFORMANCE AND/OR PAYMENT BONDS FOR ANY CONSTRUCTION
CONTRACT EXCEEDING $25,000 IN AMOUNT BUT NOT GREATER THAN $50,000
IN AMOUNT. ANY SUCH BOND SHALL BE IN AN AMOUNT NOT TO EXCEED
ONE-HALF OF THE CONTRACT AMOUNT.

(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 90 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 or other security for
the amount, or the balance thereof, unpaid at the time of
institution of such suit and to prosecute said action to final
judgment and execution for the sum or sums justly due him;
provided, however, that any person having direct contractual
relationship with a subcontractor of the contractor, or with any
sub-subcontractor of the contractor but no contractual
relationship express or implied with the contractor furnishing
said payment bond or other security, shall have a right of action
upon the payment bond or other security upon giving written
notice to the contractor within 90 days from the date on which
such person did, or performed the last of the labor or furnished
or supplied the last of the material for which such claim is
made, stating with substantial accuracy the amount claimed and
the name of the party to whom the material was furnished or
supplied or for whom the labor was done or performed. Such notice
shall be served by mailing the same by registered or certified
mail, postage prepaid, in an envelope addressed to the contractor
at any place he maintains an office or conducts his business, or
his residence.