Ch. 292

2003 LAWS OF MARYLAND

(4) EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS SUBSECTION,
WITHIN 120 DAYS AFTER SATISFACTORY COMPLETION OF A CONTRACT FOR
CONSTRUCTION, A PUBLIC BODY SHALL RELEASE ANY RETAINAGE DUE TO THE
CONTRACTOR

(5) IF THERE IS A DISPUTE OR CONTRACT CLAIM BETWEEN THE
CONTRACTOR AND THE PUBLIC BODY CONCERNING THE SATISFACTORY
COMPLETION OF A CONTRACT FOR CONSTRUCTION, THE PUBLIC BODY SHALL
RELEASE THE RETAINAGE TO THE CONTRACTOR WITHIN 120 DAYS AFTER THE
RESOLUTION OF THE DISPUTE OR CONTRACT CLAIM.

(B)     (1) A CONTRACTOR MAY NOT RETAIN A PERCENTAGE OF PAYMENTS DUE
A SUBCONTRACTOR THAT EXCEEDS THE PERCENTAGE OF PAYMENTS RETAINED BY
THE PUBLIC BODY.

(2) PARAGRAPH (1) PARAGRAPHS (1) AND (2) PARAGRAPH (1) OF THIS
SUBSECTION MAY NOT BE CONSTRUED TO PROHIBIT A CONTRACTOR FROM
WITHHOLDING ANY AMOUNT IN ADDITION TO RETAINAGE IF THE CONTRACTOR
DETERMINES THAT A SUBCONTRACTOR'S PERFORMANCE UNDER THE SUBCONTRACT
PROVIDES REASONABLE GROUNDS FOR WITHHOLDING THE ADDITIONAL AMOUNT.

(C)     (1) A SUBCONTRACTOR MAY NOT RETAIN A PERCENTAGE OF PAYMENTS
DUE A LOWER TIER SUBCONTRACTOR THAT EXCEEDS THE PERCENTAGE OF
PAYMENTS RETAINED FROM THE SUBCONTRACTOR.

(2) PARAGRAPH (1) PARAGRAPHS (1) AND (2) PARAGRAPH (1) OF THIS
SUBSECTION MAY NOT BE CONSTRUED TO PROHIBIT A SUBCONTRACTOR FROM
WITHHOLDING ANY AMOUNT IN ADDITION TO RETAINAGE IF THE SUBCONTRACTOR
DETERMINES THAT A LOWER TIER SUBCONTRACTOR'S PERFORMANCE UNDER THE
SUBCONTRACT PROVIDES REASONABLE GROUNDS FOR WITHHOLDING THE
ADDITIONAL AMOUNT.

(D)     IF RETAINAGE HAS BEEN PLACED IN ESCROW UNDER § 17-111 OF THIS
SUBTITLE, EACH PAYMENT OF RETAINAGE SHALL INCLUDE A PRO RATA PORTION OF
INTEREST EARNED.

(E) THIS SECTION MAY NOT BE CONSTRUED TO LIMIT THE APPLICATION OF
THE REMAINING PROVISIONS OF THIS SUBTITLE.

17-111.

(A) THIS SECTION DOES NOT APPLY TO ANY PROCUREMENT CONTRACT
FUNDED WITH TAX EXEMPT FINANCING.

(B) (1) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, A CONTRACTOR
UNDER A PROCUREMENT CONTRACT THAT A PUBLIC BODY AWARDS FOR
CONSTRUCTION IS ENTITLED TO HAVE RETAINAGE UNDER THE PROCUREMENT
CONTRACT PLACED IN AN ESCROW ACCOUNT IF THE CONTRACTOR;

(I) ELECTS THAT PROCEDURE IN THE PROCUREMENT CONTRACT
IN THE SPACE PROVIDED FOR THAT ELECTION; AND

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