What does Maryland’s prompt payment law require on private construction?

In Maryland, an owner pays a contractor undisputed amounts within 7 days after the payment date set in the contract, or if the contract sets no date within the earlier of 30 days after the occupancy permit or 30 days after the owner takes possession, and a contractor pays its subcontractors within 7 days of being paid, with interest from the due date if a court awards it. The owner deadlines do not apply to contracts with the State, a county, a municipal corporation, a board of education or a public authority. The subtitle does not apply to a contract to build and sell a single family home, to transactions under the Custom Home Protection Act, or to a home improvement contract by a contractor licensed under the Maryland Home Improvement Law. A court may award equitable relief and, to the prevailing party, interest from the date the amount was due and reasonable costs, plus reasonable attorney’s fees if a party acted in bad faith. On contracts of $100,000 or more where the contractor has furnished 100% performance and payment security, retention may not exceed 5%, and undisputed retention must be paid within 90 days after substantial completion. A written contract can set its own payment terms where the statute allows. This is Md. Code, Real Prop. §§ 9-301, 9-302, 9-303, 9-304, 9-305.

WhatMaryland
Payment deadlineOwner pays within 7 days of the contract’s due date
Who this coversPrivate construction, not only public works

What the statute says

“If the contract provides for specific dates or times of payment, pay to the contractor undisputed amounts owed within 7 days after the date or time specified in the contract …”

Quoted word for word from the section’s text.

Source

Md. Code, Real Prop. §§ 9-301, 9-302, 9-303, 9-304, 9-305

Read the statute in the Maryland Code (Maryland General Assembly): mgaleg.maryland.gov.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

A contractor on Seayora keeps every job’s dates, its estimate, its invoices and its payments in one record, so the date work was last performed, the date each invoice went out and the amount still owed are on file when a lien or payment deadline is counted.

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