3126                                          LAWS OF MARYLAND                                      Ch. 678

CHAPTER 678

(House Bill 1117)

AN ACT concerning

Procurement Law - Construction Contract Disputes

FOR the purpose of establishing a procedure for the resolution of
disputes relating to certain claims arising out of
construction contracts; specifying certain time limits;
providing for the placement of retainage in a certain escrow
account; providing for the payment of interest on retainage;
providing for a certain contingency; and generally relating
to the resolution of certain contract disputes.

BY adding to

Article 21 - Procurement

Section 7-101 to be under the new subtitle "Subtitle 1.

Escrow Accounts"
Annotated Code of Maryland
(1981 Replacement Volume and 1984 Supplement)

BY repealing and reenacting, with amendments,

Article 21 - Procurement

Section 7-201

Annotated Code of Maryland

(1981 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 21 - Procurement

SUBTITLE 1. ESCROW ACCOUNTS

7-101.

WHETHER OR NOT ANY CLAIM EXISTS, WHEN THE PROCUREMENT AGENCY
PAYS A SEMIFINAL ESTIMATE, THE PROCUREMENT AGENCY SHALL PLACE ANY
RETAINAGE REMAINING IN AN INTEREST BEARING ESCROW ACCOUNT.

7-201.

(a) Upon timely demand, as defined in regulations
promulgated by the Department, by a prospective bidder or
offeror, bidder or offeror, or contractor, the responsible
procurement officer of the using agency may, consistent with the
budget and all applicable laws and regulations, negotiate and
resolve disputes relating to the formation of a contract with the