State Procurement - Construction and Services - Contract Modification

SB 63 requires state contracts for construction or security services exceeding $2 million in value and lasting three or more years to include a clause allowing cost adjustments when new laws increase required pay or benefits for workers. This directly affects contractors working on large-scale state projects, such as building infrastructure or providing security services. The bill mandates that any contract modification for these cost increases must be approved by Maryland’s Chief Procurement Officer. The law aims to ensure fair adjustments to contracts without requiring renegotiation for every statutory change.