State Finance and Procurement - Retention Proceeds

SB 835 requires state procurement units and contractors to pay undisputed retention funds - funds held back during construction projects - within 90 days after a project reaches substantial completion. This affects state contractors, subcontractors, and agencies like the Maryland Transportation Authority that handle construction contracts. The bill modifies existing law (Section 13-225 of Maryland’s Annotated Code) to set this specific payment deadline, ensuring faster release of funds without changing retainage percentage limits (capped at 5%). It applies to all state procurement contracts involving construction work.