# State Finance and Procurement (GSF)

## Title 13. Source Selection -- State Procurement Contracts

### Subtitle 2. Procedural Requirements

#### Section 13-218

(a) Each procurement contract shall include clauses covering:

  (1) termination for default;

  (2) termination wholly or partly by the State for its convenience if the head of the primary procurement unit determines that termination is appropriate;

  (3) variations that occur between estimated and actual quantities of work in a procurement contract;

  (4) liquidated damages, as appropriate;

  (5) specified excuses for nonperformance;

  (6) except for real property leases, the unilateral right of the State to order in writing:

    (i) changes in the work, if the changes are within the scope of the procurement contract; and

    (ii) a temporary stop or delay in performance;

  (7) the obligation of the contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article, to which the contractor may be subject as required under Sec. 17-402 of this article;

  (8) nonvisual access for information technology as required under Sec. 3.5-311 of this article; and

  (9) the authorization of a contractor to request a contract modification to provide an equitable adjustment to compensate the contractor for increases in the cost of and time for contract performance due to changes in State law applied by the procurement unit.

(b) In addition to the clauses required under subsection (a) of this section, a procurement contract for construction shall include:

  (1) a clause providing for contract modification if the condition of a site differs from the condition described in the specifications; and

  (2) a clause covering the requirements for notice of contract claims, submission of contract claims, and resolution of contract claims under Sec. 15-219 of this article.

(c) Each procurement contract shall include a clause that gives to the parties notice that preexisting regulations apply to the procurement contract in accordance with Sec. 11-206 of this article.

(d) At any time after the parties enter into a procurement contract they may include additional clauses in the procurement contract, by consent, without consideration.

(e) A clause required under this section for contract modification of or change orders to a procurement contract for construction shall:

  (1) make each contract modification or change order that affects the price of the procurement contract subject to:

    (i) prior written approval from the unit and any other person responsible for the procurement contract; and

    (ii) prior certification by the fiscal authority responsible for the unit about:

      (1) the availability of money; and

      (2) the effect of the contract modification or change order on the project budget or the total construction cost; and

  (2) prohibit the contract modification or change order if the certification by the fiscal authority discloses that the contract modification or change order will increase the cost beyond budgeted and available money, unless:

    (i) sufficient additional money is made available; or

    (ii) the scope of the project is adjusted to allow completion within the project budget.

(f) In accordance with Sec. 13-217(f) of this subtitle, the Board may waive the inclusion of a termination for convenience clause required under subsection (a)(2) of this section.

(g) A contract described under Sec. 11-203(a)(1)(xviii)1 or (xx) of this article shall include clauses requiring the nonprofit entity to:

  (1) subcontract the performance of historic preservation, archaeology, and conservation services to third-party firms;

  (2) competitively procure any subcontracted services in a transparent manner in accordance with applicable State law, including the minority business enterprise requirements under Title 14, Subtitle 3 of this article;

  (3) provide annual reports to the unit on partnership outcomes and expenditures, including minority business enterprise subcontracting utilization; and

  (4) maximize opportunities for community engagement related to the historic preservation, archaeology, or conservation service opportunity.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)