WILLIAM DONALD SCHAEFER, Governor

Annotated Code of Maryland

(1981 Replacement Volume and 1987 Supplement)

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

Article - Real Property

SUBTITLE 6. CONSTRUCTION CONTRACTS

10-601.

(A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2)   "CONTRACT" MEANS AN AGREEMENT OF ANY KIND OR
NATURE, EXPRESS OR IMPLIED, FOR DOING WORK OR FURNISHING
MATERIAL, OR BOTH, FOR OR ABOUT A BUILDING.-----------------------

(3)   "CONTRACTOR" MEANS A PERSON WHO HAS A CONTRACT
WITH AN OWNER.

(4) "OWNER" MEANS:

(1)  THE OWNER OF THE LAND; OR

(2)  WHEN THE CONTRACTOR EXECUTES THE CONTRACT WITH A
TENANT FOR LIFE OR FOR YEARS, THE TENANT.

(5) "SUBCONTRACTOR" MEANS A PERSON WHO HAS A CONTRACT
WITH ANYONE EXCEPT THE OWNER OR HIS AGENT.

(B) ANY OWNER OR OWNER'S AGENT WHO ENTERS INTO A WRITTEN
CONTRACT FOR ANY CONSTRUCTION, ALTERATION, OR RENOVATION IN AN
AMOUNT WHICH EXCEEDS $50,000 SHALL:

(B) (1) EXCEPT FOR WORK DONE OR MATERIALS FURNISHED IN
CONNECTION WITH A CONTRACT ENUMERATED IN SUBSECTION (E) OF THIS
SECTION, ANY CONTRACTOR OR SUBCONTRACTOR WHO UNDER A CONTRACT
DOES WORK OR FURNISHES MATERIAL, IN CONNECTION WITH A CONTRACT IN
EXCESS OF $50,000 FOR THE ERECTION, REPAIR, REBUILDING, OR
IMPROVEMENT OF A BUILDING SHALL BE ENTITLED TO PROMPT PAYMENT
UNDER PARAGRAPH (2) OF THIS SUBSECTION.

(1) (2) AN OWNER, CONTRACTOR, OR SUBCONTRACTOR SHALL:

(I) IF THE CONTRACT DOES NOT PROVIDE FOR
SPECIFIC DATES OR TIMES OF PAYMENT, PAY OR MAKE ARRANGEMENTS TO
PAY UNDISPUTED AMOUNTS OWED UNDER THE TERMS OF THE WRITTEN
CONTRACT NOT LATER THAN 30 DAYS AFTER THE DATE WHEN THE OCCUPANCY
PERMIT IS GRANTED OR THE DATE WHEN THE OWNER OR THE OWNER'S AGENT
TAKES POSSESSION, WHICHEVER IS EARLIER; OR

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