(a) (1) Before a public body awards a construction contract exceeding $100,000, the contractor shall provide payment security and performance security that meet the requirements of § 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 $50,000 but does not exceed $100,000; and
(2) the amount of the security does not exceed 50% of the contract amount.
Structure Maryland Statutes
Division II - General Procurement Law
Title 17 - Special Provisions -- State and Local Subdivisions
Subtitle 1 - Security for Construction Contracts
Section 17-102 - Scope of Subtitle
Section 17-103 - Security on Construction Contracts
Section 17-104 - Type of Security
Section 17-105 - Form of Security; Filing
Section 17-106 - Certification of Payments
Section 17-107 - Waiver of Mechanics' Liens
Section 17-108 - Action on Security
Section 17-109 - Venue; Limitations; Costs
Section 17-110 - Retention of Percentage of Total Amount of Contract as Security