§ 15-113. Liquidated damages provisions in procurement contracts
West's Annotated Code of MarylandState Finance and ProcurementEffective: July 1, 2023
Effective: July 1, 2023
MD Code, State Finance and Procurement, § 15-113
§ 15-113. Liquidated damages provisions in procurement contracts
(a) In this section, “liquidated damages” means damages in an amount designated by the parties to a contract that the injured party is eligible to collect as compensation for a specific breach of the contract.
(b)(1) On or before January 1, 2024, the Board, in consultation with the Procurement Improvement Council, shall publish a model policy concerning the inclusion and use of liquidated damages provisions in procurement contracts.
(c)(1) Subject to paragraph (2) of this subsection, on or before July 1, 2024, a unit shall adopt a written policy concerning the inclusion and use of liquidated damages provisions in procurement contracts by the unit that is substantially similar to the model policy established under subsection (b) of this section.
(d) A unit shall obtain the approval of the head of the unit if the unit decides not to include in a contract a liquidated damages clause specified under § 13-218(a)(4) of this article.
(e)(1) This subsection applies only to procurements valued at $5,000,000 or more.
Credits
Added by Acts 2023, c. 206, § 1, eff. July 1, 2023.
MD Code, State Finance and Procurement, § 15-113, MD STATE FIN & PROC § 15-113
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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