1. (a) Except as provided in subsection (b) of this section, a procurement officer may not require a contractor to provide a performance bond, payment bond, or other security on a procurement contract for construction, construction related services, services, or supplies if the price of the procurement contract is less than or equal to the small procurement amount specified in § 13-109 of this title.
2. (b) A procurement officer shall require a contractor to provide a performance bond, payment bond, or other security if federal law or a condition of federal assistance requires the security.
3. (c) If the price of a procurement contract for construction exceeds the small procurement amount specified in § 13-109 of this title for construction, a procurement officer shall require a contractor to provide security as required under Title 17, Subtitle 1 of this article.

4. (d) A procurement officer may require a contractor to provide a performance bond or other security on a procurement contract for supplies, services, or construction related services if:

   1. (1) circumstances warrant security; and
   2. (2) the price of the procurement contract exceeds the small procurement amount specified in § 13-109 of this title.

5. (e)

   1. (1) The Board shall adopt regulations to establish separate surety bond forms for procurement officers to use to require security for:

      1. (i) fixed-price contracts; and
      2. (ii) multiyear contracts.
   2. (2) The form for multiyear contracts shall provide for annual and renewable contracts.

Added by Acts 1988, c. 48, § 2, eff. Oct. 1, 1988. Amended by Acts 1995, c. 116, § 1, eff. June 30, 1995; Acts 2006, c. 299, § 1, eff. Oct. 1, 2006; Acts 2008, c. 266, § 1, eff. Oct. 1, 2008; Acts 2018, c. 712, § 1, eff. Oct. 1, 2018; Acts 2025, c. 601, § 1, eff. Oct. 1, 2025.