Payment on State of Maryland Construction Should Improve

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The State of Maryland agreed to some changes in change order processes at a meeting last Monday of the work group that was established by last year’s change order legislation.  Here are some results:

  • Subs (or GCs) do not have to do any change order work without a written change order. 
  • It is doubtful that a website that shows when payment is made to the prime contractor can be accomplished with the present State antiquated procurement system.  There is a blue ribbon commission looking at modernizing the procurement process that should address this.
  • In the Guidelines, the GC will include subcontract information on the payment and performance bond.  Subs should request this up-front in all state work since they do not have lien rights.
  • You will know who in the State has the authority to approve change orders and a chain of command to go to if there is some concern about a project.
  • The State should provide documentation for their price if it is different from the price you submit for a change order.

In the end it was evident that the State of Maryland has an out of date procurement system that will take some time to change.  If you have a change order issue that takes more than 60 days to rectify, please let know. 


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