MD HB1166

Requires undisputed retention proceeds withheld under State procurement contracts to be paid within 90 days after the date of substantial completion

Applies to retention proceeds held by both State units and contractors, with substantial completion defined by the applicable contract or subcontract

Maintains existing law limiting retainage to 5% of total contract amount when contractors provide 100% payment and performance security

Preserves contractors' and subcontractors' ability to withhold additional amounts beyond retainage when reasonable grounds exist based on performance issues

Takes effect October 1, 2025