2017 Maryland Code
Real Property
Title 9 - Statutory Liens on Real Property
Subtitle 3 - Construction Contracts
§ 9-302. Prompt payment

  • (a) In general; exception. -- Except for work done or materials furnished under a contract enumerated in ยง 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) Time for payments. --
    • (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.
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