Md. Code Regs. 21.07.02.05-2

Current through Register Vol. 51, No. 21, October 18, 2024

Section 21.07.02.05-2 - Prompt Payment of Subcontractors

Mandatory provisions for all construction contracts:

A. This contract and all subcontracts issued under this contract at any tier are subject to the provisions of State Finance and Procurement Article, § 15-226, Annotated Code of Maryland, and COMAR 21.10.08. In §§A-D of this regulation, the terms "undisputed amount", "prime contractor", "contractor", and "subcontractor" have the meanings stated in COMAR 21.10.08.01.

B. A contractor shall promptly pay its subcontractors an undisputed amount to which a subcontractor is entitled for work performed under this contract within 10 days after the contractor receives a progress payment or final payment for work under this contract.

C. If a contractor fails to make payment within the period prescribed in §B of this regulation, a subcontractor may request a remedy in accordance with COMAR 21.10.08.

D. A contractor shall include in its subcontracts at any tier for work under this contract wording that incorporates the provisions, duties, and obligations of §§A-D of this regulation, State Finance and Procurement Article, § 15-226, Annotated Code of Maryland, and COMAR 21.10.08.

Md. Code Regs. 21.07.02.05-2

Regulation .05-2 adopted effective October 2, 2000 (27:19 Md. R. 1730)
Regulation .05-2 amended effective July 9, 2001 (28:13 Md. R. 1216)
Regulation .05-3 adopted effective July 9, 2001 (28:13 Md. R. 1216); amended effective 50:18 Md. R. 800, eff. 9/18/2023