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§ 17-103. Security on construction contracts

MD State Fin & Pro Code § 17-103 (2019) (N/A)
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(a)    (1)    Before a public body awards a construction contract exceeding $100,000, the contractor shall provide payment security and performance security that meet the requirements of § 17–104 of this subtitle.

(2)    The security shall be:

(i)    for performance security, in an amount that the public body considers adequate for its protection; and

(ii)    for payment security, at least 50% of the total amount payable under the contract.

(b)    A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if:

(1)    the contract exceeds $50,000 but does not exceed $100,000; and

(2)    the amount of the security does not exceed 50% of the contract amount.

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§ 17-102. Scope of subtitle
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§ 17-104. Type of security