ROBERT L. EHRLICH, JR., Governor                            S.B. 591

Sincerely,

Robert L. Ehrlich, Jr.

Governor

Senate Bill No. 591

AN ACT concerning

Procurement - Security for Construction Contracts - Retainage

FOR the purpose of limiting the retainage that may be specified in a construction
contract awarded by a public body under certain circumstances; authorizing a
public body to withhold payments in addition to retainage under certain
circumstances; requiring a public body to release certain retainage and interest
to a contractor within a certain number of days of after either the completion of
the contract or the resolution of a certain dispute or contract claim; limiting the
amount that a contractor may withhold from a subcontractor or that a
subcontractor may withhold from a lower tier subcontractor under a
construction contract awarded by a public body under certain circumstances;
providing for certain exceptions to the limitations on withholding; providing for
the availability of escrow for retainage in construction contracts awarded by a
public body; requiring that interest on money placed in escrow be handled in a
certain manner; restricting the availability of escrow in certain circumstances;
requiring the escrow agent to follow the directions of the contractor in relation to
the investment of retainage being held by the escrow agent; providing for the
application and construction of this Act; and generally relating to construction
contracts awarded by a public body.

BY renumbering

Article - State Finance and Procurement

Section 17-110

to be Section 17-112 17-111

Annotated Code of Maryland

(2001 Replacement Volume and 2002 Supplement)

BY adding to

Article - State Finance and Procurement

Section 17-110 and 17-111

Annotated Code of Maryland

(2001 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 17-110 of Article - State Finance and Procurement of
the Annotated Code of Maryland be renumbered to be Section(s) 17-112 17-111.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

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