MD SB835

Requires undisputed retention proceeds held by state units or contractors on State procurement contracts to be paid within 90 days after the date of substantial completion

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

Preserves contractors' ability to withhold additional amounts beyond retainage if subcontractor performance provides reasonable grounds

Applies to construction contracts under Maryland State Finance and Procurement law, including those involving the Maryland Transportation Authority

Takes effect October 1, 2025