2021 Maryland Statutes
Title 9 - Statutory Liens on Real Property
Subtitle 3 - Construction Contracts
Section 9-302 - Prompt Payment
(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.