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21.10.08.00.htm 21.10.08.00. Title 21 STATE PROCUREMENT REGULATIONS Subtitle 10 ADMINISTRATIVE AND CIVIL REMEDIES Chapter 08 State Construction Contracts―Prompt Payment of Subcontractors Authority: State Finance and Procurement Article, §15-226, Annotated Code of Maryland
21.10.08.01.htm 21.10.08.01. 01 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) Undisputed Amount.. a) "Undisputed amount" means an amount owed by a contractor to a subcontractor for which there is no good faith dispute, including any retainage withheld.b) "Undisputed amount" includes an amount withheld because of a dispute arising out of an agreement or occurrence unrelated to the agreement under which the amount is withheld.2) "Prime contractor" mea
21.10.08.02.htm 21.10.08.02. 02 Policy.. It is the policy of the State that a contractor shall promptly pay to a subcontractor any undisputed amount to which the subcontractor is entitled for work under a State procurement contract for construction.
21.10.08.03.htm 21.10.08.03. 03 Responsibilities.. A. A contractor who receives a progress payment or a final payment shall pay a subcontractor an undisputed amount to which the subcontractor is entitled within 10 calendar days of receiving the payment.B. If a contractor withholds payment from a subcontractor within the time period in which the payment normally would be made, the contractor shall:1) Notify the subcontractor in writing and state the reason why payment is being withheld;.
21.10.08.04.htm 21.10.08.04. 04 Duties.. A. Within 2 business days of receipt of written notice from a subcontractor, a representative of the unit designated by the procurement officer shall verbally contact the contractor that withheld payment to ascertain whether the amount withheld is an undisputed amount.B. If the representative of the unit determines that a part or all of the amount withheld is an undisputed amount, the representative of the unit shall instruct the contractor that withheld payment to
21.10.08.05.htm 21.10.08.05. 05 Actions.. A. If the contractor fails to pay the subcontractor the undisputed amount within the time instructed to do so under Regulation .04B of this chapter, the subcontractor may report the nonpayment in writing to the procurement officer.B. Meeting.. 1) If the subcontractor notifies the procurement officer in writing under §A of this regulation that payment has not been made, the representative of the unit shall schedule a meeting to discuss the dispute with the unit's pr
21.10.08.06.htm 21.10.08.06. 06 Remedies.. A. If the representative of the unit determines that the contractor is delinquent in payment of an undisputed amount to the subcontractor, the representative may order that further progress payments to the contractor that withheld payment shall be withheld until the subcontractor is paid.B. If payment is not paid to the subcontractor within 7 business days after the representative of the unit determines that the contractor is delinquent in paying the subcontra
21.10.08.07.htm 21.10.08.07. 07 Appeal.. A. A contractor or a subcontractor may appeal a decision under Regulation .06C of this chapter to the procurement officer.B. The contractor shall comply with the procurement officer's decision..
21.10.08.08.htm 21.10.08.08. 08 Decision.. A. An act, failure to act, or decision of a procurement officer or a representative of a unit, concerning a payment dispute between a contractor and subcontractor under this chapter, may not:1) Affect the rights of the contracting parties under any other provision of law;. 2) Be used as evidence on the merits of a dispute between the unit and the contractor or the contractor and the subcontractor in any other proceeding; or3) Result in liability or
21.10.08.9999.htm 21.10.08.9999. Administrative History Effective date: October 2, 2000 (27:19 Md. R. 1730). Regulation .01 amended effective July 9, 2001 (28:13 Md. R. 1216). Regulation .03 amended effective July 9, 2001 (28:13 Md. R. 1216). Regulation .04 amended effective July 9, 2001 (28:13 Md. R. 1216). Regulation .05B amended effective July 9, 2001 (28:13 Md. R. 1216). Regulation .06 amended effective July 9, 2001 (28:13 Md. R. 1216). Regulation .08A amended effective July 9, 2001 (28:13 Md. R. 1216).
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