State Procurement - Security Services - Contract Modification

HB 74 requires state contracts for construction or security services exceeding $2 million over three years to include a clause allowing contract modifications when statutory changes increase required compensation or benefits (e.g., new minimum wage laws). This directly affects large contractors working with Maryland state agencies on these projects. The bill mandates that any modified contract must first receive approval from the Chief Procurement Officer. It aims to ensure fair adjustments for cost increases driven by state-mandated changes, without requiring contractors to absorb unexpected expenses. The law takes effect October 1, 2026.