Ch. 48

LAWS OF MARYLAND

AND 17-107 OF THIS SUBTITLE WITH RESPECT TO ANY CONSTRUCTION
CONTRACT:

(1)  THAT DOES NOT EXCEED $100,000; AND

(2)  FOR WHICH STATE MONEY IS NOT USED.

REVISOR'S NOTE: Subsection (a) of this section is new
language derived without substantive change from
former SF § 12-201(b).

Subsection (b) of this section is new language added
to state expressly the applicability of this subtitle
to construction contracts.

Subsection (c) of this section is new language derived
without substantive change from former SF § 12-201(h).

Defined terms: "Construction" § 11-101
"Performance security" § 17-101
"Public body" § 17-101

17-103. SECURITY ON CONSTRUCTION CONTRACTS.

(A)  CONTRACTS EXCEEDING $50,000.

(1)  BEFORE A PUBLIC BODY AWARDS A CONSTRUCTION
CONTRACT EXCEEDING $50,000, 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.

(B)  CONTRACTS EXCEEDING $25,000 BUT NOT EXCEEDING $50,000.

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
$50,000; AND

(2)  THE AMOUNT OF THE SECURITY DOES NOT EXCEED 50% OF
THE CONTRACT AMOUNT.

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