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Ch. 621 2000 LAWS OF MARYLAND
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(2) At the time of final payment, the [transportation] unit shall direct
the escrow agent to settle the escrow account by distributing money in the escrow
account in the following order:
(i) to the [transportation] unit for any claim it may have against
the contractor under the procurement contract;
(ii) unless waived by the Board, to the Comptroller for any claim
exceeding $50 against the contractor by the State, a unit, or a State controlled
governmental entity; and
(iii) to the contractor.
15-226.
(a) In this section, "undisputed amount" means an amount owed by a
contractor to a subcontractor for which there is no good faith dispute, including any
retainage withheld.
(b) It is the policy of the State that, FOR WORK UNDER A STATE
PROCUREMENT CONTRACT FOR CONSTRUCTION:
(1) a contractor shall promptly pay to a subcontractor any undisputed
amount to which the subcontractor is entitled [for work under a State procurement
contract for construction]; AND
(2) A SUBCONTRACTOR SHALL PROMPTLY PAY TO A LOWER TIER
SUBCONTRACTOR ANY UNDISPUTED AMOUNT TO WHICH THE LOWER TIER
SUBCONTRACTOR IS ENTITLED.
(c) (1) A contractor shall pay a subcontractor an undisputed amount to
which the subcontractor is entitled within 10 days of receiving a progress or final
payment from the State.
(2) If a contractor withholds payment from a subcontractor, within the
time period in which payment normally would be made, the contractor shall:
(i) notify the subcontractor in writing and state the reason why
payment is being withheld; and
(ii) provide a copy of the notice to the procurement officer.
(d) (1) If a subcontractor does not receive a payment within the required
time period, the subcontractor may give written notice of the nonpayment to the
procurement officer.
(2) The notice shall:
(i) indicate the name of the contractor, the project under which the
dispute exists, and the amount in dispute;
(ii) provide an itemized description on which the amount is based;
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and
- 3256 -
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