Prompt payment

Checkout our iOS App for a better way to browser and research.

    (a)    Except for work done or materials furnished under a contract enumerated in § 9–305 of this subtitle, a contractor or subcontractor who does work or furnishes material under a contract shall be entitled to prompt payment under subsection (b) of this section.

    (b)    (1)    If the contract is with an owner, the owner shall:

            (i)    If the contract does not provide for specific dates or times of payment, pay to the contractor undisputed amounts owed under the terms of the written contract, within the earlier of:

                1.    30 days after the day on which the occupancy permit is granted; or

                2.    30 days after the day on which the owner or the owner’s agent takes possession; or

            (ii)    If the contract provides for specific dates or times of payment, pay to the contractor undisputed amounts owed within 7 days after the date or time specified in the contract.

        (2)    Paragraph (1) of this subsection does not apply to any contract between the contractor and:

            (i)    The State;

            (ii)    A county;

            (iii)    A municipal corporation;

            (iv)    A board of education; or

            (v)    A public authority or instrumentality.

        (3)    If the contract is not with an owner, the contractor or subcontractor shall pay undisputed amounts owed to its subcontractors within 7 days after receipt by the contractor or subcontractor of each payment received for its subcontractors’ work or materials.


Download our app to see the most-to-date content.