1. (a)

   1. (1) Before a public body awards a construction contract exceeding the small procurement amount specified in § 13-109 of this article for construction, the contractor shall provide payment security and performance security that meet the requirements of § 17-104 of this subtitle.

   2. (2) The security shall be:

      1. (i) for performance security, in an amount that the public body considers adequate for its protection; and
      2. (ii) for payment security, at least 50% of the total amount payable under the contract.

2. (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. (1) the contract exceeds $100,000 but does not exceed the small procurement amount specified in § 13-109 of this article; and
   2. (2) the amount of the security does not exceed 50% of the contract amount.

Added by Acts 1988, c. 48, § 2, eff. Oct. 1, 1988. Amended by Acts 1998, c. 636, § 1, eff. Oct. 1, 1998; Acts 2017, c. 588, § 1, eff. Oct. 1, 2017; Acts 2017, c. 589, § 1, eff. Oct. 1, 2017; Acts 2025, c. 601, § 1, eff. Oct. 1, 2025.