News Maker - MARYLAND

Maryland:  On July 1, 2013 Maryland House Bill HB560 became law.   The new law titled "Public-Private Partnerships add Maryland to growing list of states requiring Payment Bond Protection for Public/Private jobs matching the state's little Miller Act.

"REQUIREMENTS  FOR THE  PRIVATE  ENTITY TO  PROVIDE PERFORMANCE  AND PAYMENT  SECURITY  IN  A  FORM AND  IN  AN AMOUNT DETERMINED  BY  THE RESPONSIBLE  PUBLIC  ENTITY, EXCEPT  THAT REQUIREMENTS FOR THE  PAYMENT SECURITY FOR CONSTRUCTION CONTRACTS SHALL  BE  IN ACCORDANCE  WITH  TITLE 17,  SUBTITLE  1 OF  THIS  ARTICLE, INCLUDING  THE REQUIREMENT  THAT  PAYMENT SECURITY  SHALL  BE ESTABLISHED  ON  THE VALUE  OF  THE CONSTRUCTION  ELEMENTS  OF  THE PUBLIC–PRIVATE PARTNERSHIP AGREEMENT AND NOT ON THE TOTAL VALUE OF THE PUBLIC–PRIVATE PARTNERSHIP AGREEMENT."

TITLE  17, SUBTITLE  1  OF THIS  ARTICLE  ("SECURITY FOR CONSTRUCTION CONTRACTS")

§ 17-103. Security on construction contracts.

(a) Contracts exceeding $100,000.-

(1) Before  a  public body  awards a construction contract exceeding $100,000, the contractor shall provide payment security and performance security that meet the requirements of § 17-104 of this subtitle.

(2) The security shall be:

(i) for performance security, in an amount that the public body considers adequate for
its protection; and

(ii) for payment security, at least 50% of the total amount payable under the contract.

(b) Contracts exceeding $25,000 but not exceeding $100,000.- A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if:

(1) the contract exceeds $25,000 but does not exceed $100,000; and

(2) the amount of the security does not exceed 50% of the contract amount.


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Saturday, 29 February 2020

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