PARRIS N. GLENDENING, Governor                             Ch. 463

Article - State Finance and Procurement

3-609.

(a)     There is a Construction Contingency Fund.

(b)     The Fund is a continuing, nonlapsing, revolving fund that consists of:
(1) money appropriated to the Fund:

[(1)](I) in the annual budget; OR

[(2)](II) in an annual General Construction Loan Act or in a Maryland
Consolidated Capital Bond Loan Act; or

[(3)](2) [as] unspent proceeds of an enabling act allocated to the Fund by
the Governor under § 8-129 of this article; OR

(3) THE AMOUNT OF AN APPROPRIATION IN AN ANNUAL GENERAL
CONSTRUCTION LOAN ACT OR IN A MARYLAND CONSOLIDATED CAPITAL BOND
LOAN ACT THAT IS IN EXCESS OF THE AMOUNT NEEDED FOR A PROJECT INCLUDED
IN THE ACT AND THAT IS ALLOCATED TO THE FUND BY THE GOVERNOR.

(c)     An appropriation or allocation to the Fund may not be made if it would cause the
total balance in the Fund to exceed [$2,000,000] .75% OF THE CAPITAL DEBT
AFFORDABILITY LIMIT, DETERMINED UNDER TITLE 8 OF THIS ARTICLE, FOR THAT YEAR.

(d)     With the advice and assistance of the Departments of Budget and Fiscal Planning
and General Services, the Fund shall be administered by the Board of Public Works.

(e)     With the approval of the Governor, the Secretaries of Budget and Fiscal Planning
and General Services may request the Board of Public Works to authorize an expenditure from
the Fund to supplement any capital appropriation OR TO CONDUCT VALUE ENGINEERING
ON A PROJECT [that]:

(1)     THAT is for a capital project to be owned by the State or a unit of the State
government;

(2)     THAT was contained in a capital appropriation of an annual budget, in an
annual general construction loan, or in an annual Maryland Consolidated Capital Bond
Loan; and

(3) (I) THAT is insufficient in amount to permit the initial award of a contract
for the project to the bidder or offeror selected in accordance with applicable State law, or to
cover change orders during construction of the project which do not increase the scope of the
project f. 7; OR

(II) IF, IN THE BELIEF OF THE DEPARTMENT OF GENERAL SERVICES
OR AT THE REQUEST OF THE BUDGET COMMITTEES, THE PROJECT COST COULD BE
REDUCED OR QUALITY IMPROVED THROUGH THE USE OF VALUE ENGINEERING.

SECTION 2. AND BE IT FURTHER ENACTED, That the Secretary of General
Services shall prepare a report concerning the applications of value engineering to State
construction projects under this Act, the projects on which value engineering was applied, the

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