State and Private Construction Contracts - Prompt Payment Requirements

HB 451 requires owners of private construction projects and contractors to include specific payment terms in contracts. It mandates that owners pay contractors within 60 days of receiving a valid invoice after work completion, and if payment is withheld, they must provide written notice explaining the reason within 60 days. Unpaid amounts accrue 9% annual interest starting on the 60th day. Subcontractors must also be paid within 60 days of invoice or 7 days after the contractor receives payment from the owner. This law directly affects contractors, subcontractors, and property owners involved in Maryland construction projects.