State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

HB 1478 amends Maryland law to require contractors working on state projects to pay subcontractors and suppliers at least 95% of any undisputed amount owed within 10 days of receiving payment from the state. This directly affects contractors, subcontractors, and suppliers involved in state procurement contracts by establishing a clear payment timeline and reducing delays. The bill specifies that "undisputed amount" includes retainage and excludes disputed sums, and requires contractors to provide written notice to subcontractors/suppliers and the procurement officer if payment is withheld. It replaces the previous 80% payment requirement with the new 95% standard, effective July 1, 2026.