HB 1499 Maryland House of Delegates · 2025 Regular Session

State Procurement - Construction and Services - Contract Modification

HB 1499 requires state procurement contracts for construction and services to include specific clauses enabling contract modifications when costs rise due to statutory changes increasing required compensation/benefits or collective bargaining agreements. It directly affects state agencies and contractors by mandating these clauses in all new construction and services contracts signed after October 1, 2025. The bill adds two key provisions: (1) automatic adjustment for site condition differences in construction contracts, and (2) standardized procedures for handling contract claims. It modifies Maryland’s existing procurement law (Section 13-218(b)) to enforce these cost-adjustment mechanisms without creating new programs or funding.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2025
Committee Review
Mar 2025
House of Delegates Passage
Mar 2025
Senate Passage
Governor
Introduced Feb 13, 2025 Last action Mar 20, 2025
Maddy AI version diff · 1 comparison

What changed between versions

First - State Procurement - Construction and Services - Contract Modification Third - State Procurement - Construction and Services - Contract Modification · 4 edits
MODERATE
HB 1499 was amended to expand its applicability from general construction contracts to specifically include security services contracts, add duration and value thresholds for contract modification clauses, and update the effective date. These changes clarify when the new compensation and benefits adjustment requirements apply to state procurement contracts.
Scope change
The bill now specifically targets security services contracts in addition to construction contracts, and adds duration (3+ years) and value (> $1,000,000) thresholds for when contract modification clauses are required.
SCOPE

Changed 'construction' to 'construction or security services' to expand the types of contracts covered by the compensation adjustment requirements.

ELIGIBILITY

Added requirements that contracts must be 3 years or more in duration and valued at greater than $1,000,000 to trigger the contract modification clause for compensation and benefits.

REQUIREMENT

Added a new provision requiring that contracts modified under the compensation adjustment clause must be contingent on approval by the Board of Public Works.

TIMELINE

Changed the effective date from October 1, 2025 to October 1, 2026.

Floor votes · House of Delegates Mar 8, 2025

How they voted

1315
Passed · 3 other
Total votes 139
Mar 8, 2025
D Democratic100
98 Yea 2
98% Yea
R Republican39
33 Yea 5 Nay 1
84% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
13
Key actions
4
Committee
5
Mar 17, 2025
Committee
Referred Budget and Taxation
upper
Mar 17, 2025
Lower · Passed
Third Reading Passed
lower
Mar 15, 2025
Lower · Passed
Favorable with Amendments {
lower
Mar 15, 2025
Lower · Passed
Favorable with Amendments Report by Health and Government Operations
lower
Mar 8, 2025
House Of Delegates · Passed
House of Delegates Vote: pass (131-5-3)
house of delegates
Mar 3, 2025
Committee
Rereferred to Health and Government Operations
lower
Feb 13, 2025
Committee
First Reading House Rules and Executive Nominations
lower
23 primary · 0 co-sponsors

Sponsors