MD HB451

Private construction contracts must require owners to pay contractors within 60 days of receiving an invoice for satisfactorily completed work, with 9% annual interest accruing on unpaid amounts after the 60-day deadline

Contractors must pay subcontractors within 60 days of receiving an invoice or within 7 days of receiving payment from the owner, whichever applies

If an owner or contractor withholds payment, they must provide written notification within 60 days specifying the intention to withhold and the reason for withholding

Payment from the owner to the contractor cannot be a required condition for paying subcontractors, unless the owner is insolvent or has filed for bankruptcy

The bill takes effect October 1, 2025 and applies to both private construction contracts and State construction contracts involving subcontractors