Owner to Prime Contractor (Private): 7 days after the due date in the contract or 30 days after receipt of invoice if contract is silent.
Prime Contractor to Subcontractor (Private): 7 days after receipt of payment from owner.
Interest/Penalties (Private): Interest at a rate determined in the court’s discretion. Attorneys’ fees awarded if the other party acted in bad faith.
Owner to Prime Contractor (Public): 30 days after the later of the date payment is due under the contract and the date the invoice is received.
Prime Contractor to Subcontractor (Public): 10 days after receipt of payment from owner.
Interest/Penalties (Public): Interest at a rate of 9% per annum.
Pay-If-Paid Permissible: Yes, but clause cannot be used as a defense to lien or bond claims.
Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Maryland since that date. Visit our 50-State Construction Law Map for information on other states.