EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*sb0403*
SENATE BILL 403
P2 5lr1708
By: Senator McCray
Introduced and read first time: January 20, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
State Procurement – Construction and Services – Contract Modification 2
FOR the purpose of requiring a procurement contract for construction or services to include 3
a clause requiring contract modification for increased costs for compensation and 4
benefits under certain circumstances; and generally relating to procurement 5
contracts for construction and services. 6
BY repealing and reenacting, with amendments, 7
Article – State Finance and Procurement 8
Section 13–218(b) 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2024 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – State Finance and Procurement 14
13–218. 15
(b) (1) In addition to the clauses required under subsection (a) of this section, 16
a procurement contract for construction shall include: 17
[(1)] (I) a clause providing for contract modification if the condition of a 18
site differs from the condition described in the specifications; [and] 19
[(2)] (II) a clause covering the requirements for notice of contract claims, 20
submission of contract claims, and resolution of contract claims under § 15–219 of this 21
article; AND 22
2 SENATE BILL 403
(III) A CLAUSE REQUIRING CONTRACT MODIFICATIO N FOR THE 1
EQUITABLE ADJUSTMENT OF THE CONTRACT FOR INC REASED COSTS FOR 2
COMPENSATION AND BEN EFITS AS A RESULT OF: 3
1. STATUTORY CHANGES INCREASING REQUIRED 4
COMPENSATION OR BENE FITS; OR 5
2. COLLECTIVE BARGAININ G. 6
(2) IN ADDITION TO THE CL AUSES REQUIRED UNDER SUBSECTION (A) 7
OF THIS SECTION, A PROCUREMENT CONTRA CT FOR SERVICES SHAL L INCLUDE A 8
CLAUSE REQUIRING CON TRACT MODIFICATION FOR THE EQUITABLE AD JUSTMENT 9
OF THE CONTRACT FOR INCREASED COSTS FOR COMPENSATION AND BEN EFITS AS A 10
RESULT OF: 11
(I) STATUTORY CHANGES IN CREASING REQUIRED 12
COMPENSATION OR BENE FITS; OR 13
(II) COLLECTIVE BARGAININ G. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2025. 16