EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1499*
HOUSE BILL 1499
P2 5lr3591
CF SB 403
By: Delegate S. Johnson Delegates S. Johnson, Alston, Bagnall, Bhandari,
Chisholm, Cullison, Guzzone, Hill, Hutchinson, Kaiser, Kerr, Kipke, Lopez,
Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga,
Taveras, White Holland, Woods, and Woorman
Introduced and read first time: February 13, 2025
Assigned to: Rules and Executive Nominations
Re–referred to: Health and Government Operations, February 25, 2025
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
State Procurement – Construction and Services – Contract Modification 2
FOR the purpose of requiring a certain procurement contract for construction or security 3
services to include a clause requiring contract modification for increased costs for 4
compensation and benefits under certain circumstances; requiring a certain contract 5
that is modified to be contingent on approval by the Board of Public Works; and 6
generally relating to procurement contracts for construction and services. 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 13–218(b) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2024 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – State Finance and Procurement 15
13–218. 16
2 HOUSE BILL 1499
(b) (1) In addition to the clauses required under subsection (a) of this section, 1
a procurement contract for construction shall include: 2
[(1)] (I) a clause providing for contract modification if the condition of a 3
site differs from the condition described in the specifications; [and] 4
[(2)] (II) a clause covering the requirements for notice of contract claims, 5
submission of contract claims, and resolution of contract claims under § 15–219 of this 6
article; AND 7
(III) IF THE CONTRACT IS F OR 3 YEARS OR MORE IN DUR ATION 8
AND IS VALUED AT GRE ATER THAN $1,000,000, A CLAUSE REQUIRING C ONTRACT 9
MODIFICATION FOR THE EQUITABLE ADJUSTMENT OF THE CONTRACT FOR 10
INCREASED COSTS FOR COMPENSATION AND BEN EFITS AS A RESULT OF : 11
1. STATUTORY CHANGES IN CREASING REQUIRED 12
COMPENSATION OR BENE FITS; OR 13
2. COLLECTIVE BARGAININ G. 14
(2) IN ADDITION TO THE CL AUSES REQUIRED UNDER SUBSECTION (A) 15
OF THIS SECTION , A PROCUREMENT CONTRACT FOR SECURITY SERVICES THAT IS 16
FOR 3 YEARS OR MORE IN DUR ATION AND IS VALUED AT GREATER THAN $1,000,000 17
SHALL INCLUDE A CLAU SE REQUIRING CONTRAC T MODIFICATION FOR T HE 18
EQUITABLE ADJUSTMENT OF THE CONTRACT FOR INCREASED COSTS FOR 19
COMPENSATION AND BENEFITS AS A RE SULT OF: 20
(I) STATUTORY CHANGES IN CREASING REQUIRED 21
COMPENSATION OR BENE FITS; OR 22
(II) COLLECTIVE BARGAININ G. 23
(3) A CONTRACT THAT IS MOD IFIED IN ACCORDANCE WITH 24
PARAGRAPH (1)(III) OR (2) OF THIS SUBSECTION I S CONTINGENT ON APPR OVAL BY 25
THE BOARD. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October 1, 2025 2026. 28