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.