State Finance and Procurement - Retention Proceeds

HB 954 requires state agencies and contractors to pay undisputed retention proceeds within 90 days after a construction project reaches "substantial completion." This directly affects state contractors and subcontractors working on government construction projects who hold retention payments. The bill amends Maryland's procurement law (Section 13-225) to establish this 90-day deadline, clarifying that retainage (typically up to 5% of contract value) must be released promptly without dispute. It also ensures escrowed retainage includes pro-rata interest earned during the holding period. The law takes effect October 1, 2026.