Md. Code Regs. 21.10.08.03

Current through Register Vol. 51, No. 18, September 6, 2024

Section 21.10.08.03 - Responsibilities

A. A contractor who receives a progress payment or a final payment shall pay a subcontractor an undisputed amount to which the subcontractor is entitled within 10 calendar days of receiving the payment.

B. If a contractor withholds payment from a subcontractor within the time period in which the payment normally would be made, the contractor shall:

(1) Notify the subcontractor in writing and state the reason why payment is being withheld;

(2) Provide a copy of the notice to the prime contractor and, if different, to the person or firm that made the progress payment or final payment to the contractor; and

(3) Provide a copy of the notice to the procurement officer.

C. Written Notice of Nonpayment.

(1) If a subcontractor does not receive a payment within the required time period, the subcontractor shall give written notice of the nonpayment to the procurement officer.

(2) The notice shall:

(a) Indicate the:

(i) Name of the contractor and, if different, of the prime contractor;

(ii) Project under which the dispute exists; and

(iii) Amount in dispute;

(b) Provide an itemized description on which the amount is based; and

(c) If known, provide an explanation for any dispute concerning the payment not received.

Md. Code Regs. 21.10.08.03

Regulation .03 amended effective July 9, 2001 (28:13 Md. R. 1216)