Md. Code, State Finance and Procurement § 13-227
This is the official text of Md. Code, State Finance and Procurement § 13-227, part of Maryland’s Code, State Finance and Procurement — governs the state budget and government contracting.
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§13–227.
Official statutory text
(a) If a prime contractor requires a subcontractor to provide a bid, performance, or payment bond on a procurement contract for services, supplies, or construction related services with the State, the prime contractor may not require bid, performance, or payment bonding from the subcontractor that is more stringent than the bonding requirements in §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article.
(b) A bid, performance, or payment bond that is provided by a subcontractor under subsection (a) of this section shall be accepted by the prime contractor if the bond would be accepted by the State and provided by:
(1) a surety company authorized to do business in the State; or
(2) the Maryland Small Business Development Financing Authority established in Title 5, Subtitle 5 of the Economic Development Article.
(c) In a solicitation or pre–bid conference for a procurement contract for services, supplies, or construction related services with the State, the procurement agency shall provide notice to all bidders that bid security shall be:
(1) a bond provided by a surety company authorized to do business in this State;
(2) a bond provided by an individual surety that meets the requirements of §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article;
(3) cash; or
(4) another form of security:
(i) authorized by federal or State regulation; or
(ii) that is satisfactory to the unit awarding the contract.
(b) A bid, performance, or payment bond that is provided by a subcontractor under subsection (a) of this section shall be accepted by the prime contractor if the bond would be accepted by the State and provided by:
(1) a surety company authorized to do business in the State; or
(2) the Maryland Small Business Development Financing Authority established in Title 5, Subtitle 5 of the Economic Development Article.
(c) In a solicitation or pre–bid conference for a procurement contract for services, supplies, or construction related services with the State, the procurement agency shall provide notice to all bidders that bid security shall be:
(1) a bond provided by a surety company authorized to do business in this State;
(2) a bond provided by an individual surety that meets the requirements of §§ 13–207 and 13–216 of this subtitle and § 17–104 of this article;
(3) cash; or
(4) another form of security:
(i) authorized by federal or State regulation; or
(ii) that is satisfactory to the unit awarding the contract.
Status: in_force · Read it on the official government site
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