# State Finance and Procurement (GSF)

## Title 17. Special Provisions -- State and Local Subdivisions

### Subtitle 1. Security for Construction Contracts

#### Section 17-103

(a)

  (1) Before a public body awards a construction contract exceeding the small procurement amount specified in Sec. 13-109 of this article for construction, the contractor shall provide payment security and performance security that meet the requirements of Sec. 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) 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 $100,000 but does not exceed the small procurement amount specified in Sec. 13-109 of this article; and

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

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