MD SB671

Extends construction contract payment protections to contracts with counties, municipal corporations, boards of education, and public authorities, which were previously exempt under existing law

Requires parties withholding payment to provide written notice within 15 days specifying the reason and identifying the disputed work, with withheld amounts capped at twice the amount in dispute

Increases interest rate on late payments from 9% per year to 2% per month (24% annually), accruing beginning on the 61st day after invoice receipt rather than the 31st day

Prohibits interest payment requirements from being waived by any party or altered by contract, and removes previous limitations on unit liability for interest

Allows contractors and subcontractors to stop work after providing 14 days' written notice if payment is not received, without being deemed in default or violation of the contract

Takes effect October 1, 2026