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On October 1, 2017, Senate Bill 311 (“S.B. 311”) becomes effective.  S.B. 311 repeals Md. Code Ann., State Fin. & Proc. §§ 3-301 et seq., addressing the proposal and bidding process for architectural and engineering services for Maryland State projects, and enacts what will become Md. Code Ann., State Fin. & Proc. §12-112 (“§ 12-112”). …

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In Schneider Electric Building Critical Systems, Inc. v. Western surety Company, 231 Md. App 27 (2016), the Maryland Court of Special Appeals held that a surety whose bond was incorporated by reference into a subcontract containing an arbitration provision did not obligate itself to arbitrate any claims arising from the construction project.  Schneider Electric Buildings…

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The Maryland Court of Appeals upheld the dismissal of a subcontractor’s delay and acceleration claims against a general contractor after the court determined that a pay-if-paid provision existed in the subcontract and the owner refused to remit payment.  The court concluded that, despite directing the subcontractor to accelerate work on the project, the general contractor…

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The Hogan administration has unveiled a major overhaul of how billions in state contracts are bid and awarded, along with a revamping of hundreds of regulations designed to making doing business in Maryland easier. Few of the changes have broad impact on the public at large, but they impact hundreds of state contractors and thousands…

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The State of Maryland has two Prompt Pay Acts available to all contractors, and an additional prompt payment mechanism available to Disadvantaged Business Enterprises (“DBE”) and Minority Business Enterprises (“MBE”). Prompt Payment Act for State Projects The State Prompt Payment of Subcontractors Act is found in the Code of Maryland Regulation (“COMAR”). These regulations require a…

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The process for filing a mechanic’s lien in Maryland can be confusing and appear somewhat redundant to a contractor simply seeking to obtain payment for work performed and materials furnished. From start to finish, a mechanic’s lien requires multiple steps in order to secure payment.  These steps include pre-lien requirements, filing of a petition for…

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If the deadline for filing a mechanics’ lien has slipped by, the unpaid contractor still has hope – and remedies – under Maryland statutes. For contractors failing to meet the procedural requirements required to file a mechanic’s lien in Maryland, payment may still be obtained under the Maryland Trust Fund Statute and the Maryland Prompt…

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In 2015 the Maryland legislature passed a false claims act similar to the Federal False Claims Act, with similar potential for broad interpretation against the businesses subject to it. Previously, the Maryland act applied only to the healthcare industry, but the new law expands it to anyone doing business with state or local governments. The purpose…

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With the close of the 2016 Maryland Legislative Session, several bills affecting construction companies were passed.  The following are summaries of each bill.  Governor Hogan must sign each bill into law, at which time each shall go into effect on July 2, 2016. Liquidated Damages for Failure to Pay Prevailing Wage – under this law,…

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