Procurement Contracts and Construction Contracts - Payments

HB 1336 updates Maryland's payment rules for construction and procurement contracts to apply to local government projects like city buildings, schools, and public facilities. It requires local governments to pay contractors within 30 days of a building’s occupancy permit or possession, mandates written notice with specific reasons if payment is withheld (capping withheld amounts at twice the disputed sum), and sets 2% monthly interest on overdue payments starting 61 days after an invoice. The bill directly affects contractors and subcontractors working on local government projects, ensuring clearer timelines and penalties for late payments. It does not apply to state-level contracts or emergency projects.