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Bill

HB 1478

State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

2026 Regular Session Introduced by Chris Adams and 6 co-sponsors

HB 1478 revises Maryland state procurement rules on how quickly prime contractors must pay subcontractors and suppliers for state-funded work, affecting construction industry cash flow.

Hearing 3/11 at 1:00 p.m.
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Bill Summary · HB 1478

Legislative bill overview

HB 1478 modifies Maryland's state procurement rules governing how quickly prime contractors must pay their subcontractors and suppliers on state-funded projects. The bill alters existing prompt payment requirements, likely adjusting timelines, payment thresholds, or dispute resolution mechanisms for these downstream payments.

Why is this important

Prompt payment requirements directly affect cash flow for small businesses and subcontractors, who often operate with tight margins and depend on timely payment to meet their own obligations. Delays in subcontractor/supplier payment can cascade through construction and service industries, potentially causing project delays or business failures. This bill's specific alterations will determine whether these protections strengthen or weaken.

Potential points of contention

  • Scope of coverage: Disagreement over which subcontractors and suppliers qualify for protections, and at what contract value thresholds protections apply
  • Payment timeline changes: Whether the bill extends or shortens the required payment period, affecting contractor cash flow management and state budget impacts
  • Dispute resolution mechanisms: Whether changes make it easier or harder for subcontractors to challenge non-payment, and whether they bypass traditional legal processes

Compiled from official sources — confirm details with the bill’s official record.

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