Procurement Contracts and Construction Contracts - Payments

SB 671 updates payment rules for construction and procurement contracts involving local governments in Maryland. It requires local owners (like counties, cities, school boards, or public authorities) to pay contractors within 30 days of occupancy or possession, or 7 days for contracts with specific payment dates, and mandates written notice with detailed reasons if payments are withheld. The bill also sets 2% monthly interest on unpaid amounts (non-waivable) and limits withheld payments to twice the disputed amount. This directly affects contractors and subcontractors working on projects for these local entities, ensuring clearer payment timelines and dispute resolution.