House Bill HB-119 & SB 708

House Bill HB-119 & SB 708

“State Procurement Change Order Fairness Act”

Have you ever not been paid from a change order?

Every now and then, new legislation is introduced to Maryland’s law makers that if approved changes cash flow and improves financial conditions for minority and women owned firms.  HB-119 & SB 708 does just that by:

1. Allow the GC and Subcontractor to stop work until the value of the change order or additional work is agreed upon by all parties;
2. Create a binding commitment from the state to fund and pay the agreed upon price; and,
3. Prevent the state from defaulting the GC (and subcontractor) or assessing any penalties if agreement on pricing cannot be reached

The bill applies to all state work, Maryland Stadium Authority (Baltimore City School Construction) PP3’s, University of Maryland System, including Morgan State University and St. Mary’s College.

MBE firms, we need your verbal support for General Assembly hearings coming up on March 4, 2015, 1:00 PM at Health and Government Matters committee.

House Bill 119 Fiscal and Policy Note