# COMAR Title 21 — State Procurement Regulations

## Subtitle 10 — Administrative and Civil Remedies

### Chapter 08 — Prompt Payment of Subcontractors

#### Regulation .03 Responsibilities.

*COMAR 21.10.08.03*

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

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

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

  (2) Provide a copy of the notice to the prime contractor or supplier 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 or supplier does not receive a payment within the required time period, the subcontractor or supplier 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.