§ 17-103. Security on construction contracts

   (a) Contracts exceeding $100,000. --

   (1) Before a public body awards a construction contract exceeding $ 100,000, the contractor shall provide payment security and performance security that meet the requirements of § 17-104 of this subtitle.

   (2) The security shall be:

      (i) for performance security, in an amount that the public body considers adequate for its protection; and

      (ii) for payment security, at least 50% of the total amount payable under the contract.

(b) Contracts exceeding $25,000 but not exceeding $100,000. -- A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if:

   (1) the contract exceeds $ 25,000 but does not exceed $ 100,000; and

   (2) the amount of the security does not exceed 50% of the contract amount.

HISTORY: SF § 12-201; 1988, ch. 48, § 2; 1998, ch. 636.