State Procurement - Construction and Services - Contract Modification

SB 403 requires Maryland state procurement contracts for construction and services to include specific clauses enabling fair adjustments when costs rise due to statutory changes (like new wage laws) or collective bargaining agreements. It directly affects state contractors by mandating these contract modifications to address increased compensation or benefit costs. The bill amends Maryland’s procurement code to add these requirements to all new contracts, effective October 1, 2025. This ensures contracts can be adjusted equitably without requiring renegotiation for every cost change.