MD HB1478

Contractors must pay subcontractors and suppliers at least 95% of undisputed amounts within 10 days of receiving progress or final payment from the State

"Undisputed amount" includes any amount owed with no good faith dispute, including withheld retainage

Contractors who withhold payment must notify the subcontractor or supplier in writing with the reason and provide a copy to the procurement officer

Applies to suppliers who have provided labor or materials to contractors on State procurement contracts

Effective date: July 1, 2026