Section 9-302 - Prompt payment. - Maryland Statutes

§ 9-302. Prompt payment.
 

(a)  In general; exception.- 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)  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. 
 

[1989, ch. 553; 1990, ch. 486; 2008, ch. 36, § 5.]