GC Laws — Maryland contractor-law checklist preview (free)
Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com.

[ ] Licensing
      - Subject to Title 8 exemptions, acting as a home-improvement contractor requires the contractor license; selling a home improvement requires a salesperson or contractor license. Section 8-301(c) preserves specified licensed-trade and employee exceptions.
      - Except as section 8-317 provides, construction business requires the construction license under section 17-602; an out-of-state corporation or business with its principal office elsewhere requires the nonresident construction license. The county issues the applicable license.

[ ] Mechanic's liens
      - Section 9-102 covers the specified labor, materials, services and equipment without a minimum debt amount; transfer to a bona fide purchaser before lien establishment can defeat the lien, and the petition gives purchaser notice.
      - A subcontractor gives the statutory notice of intention within 120 days after work or materials. For an owner’s new single-family residence on the owner’s land, the notice must also precede full payment to the contractor and the lien cannot exceed the balance owed at notice.
      - The claimant files the petition, affidavit and supporting documents in the circuit court where any part of the land lies within 180 days after the work is finished or materials furnished.

[ ] Retainage
      - On covered State construction procurement with 100% payment and performance security, contractual retainage is capped at 5%. Downstream percentages cannot exceed the upstream percentage; additional reasonable protective withholding remains possible.
      - Under section 9-304, the 5% contract/payment cap applies when 100% performance and payment security is furnished. Downstream retention percentages cannot exceed upstream percentages; reasonable performance-related additional withholding is permitted.
      - Undisputed owner retention under section 9-304 is payable within 90 days of substantial completion as the contract/subcontract defines it.
      - The Real Property subtitle excludes single-family construction-and-sale contracts, Custom Home Protection Act transactions and licensed MHIC home-improvement contracts.

[ ] Prompt payment
      - When the contract specifies payment dates/times, the private owner pays undisputed amounts within seven days after that date/time. Only when it specifies no dates/times does the earlier-of-30-days-after-occupancy-permit-or-possession rule apply.
      - For a contract not with the owner, the contractor/subcontractor pays undisputed amounts to its subcontractors within seven days after receipt of the payment attributable to their work/materials.
      - The subtitle’s residential exclusions are set out in section 9-305.

[ ] Prevailing wage
      - Section 17-201(j) includes the State, qualifying State units, entities with at least 25% State construction funding, subdivisions electing coverage with the prescribed ordinance/resolution and notice, and WSSC. It excludes otherwise-covered State instrumentalities funded wholly outside the State, subject to the WSSC exception; the public-work definition also has express exclusions.
      - Contracts below $250,000 and federally funded portions already subject to the federal wage determination are generally excluded. Section 17-202 separately treats qualifying tax-increment-funded construction and mechanical-systems service contracts.
      - Covered contractors/subcontractors pay at least prevailing straight-time wages and the prevailing overtime rate for hours over ten in a calendar day, over forty in a workweek, or on Sunday or a legal holiday.

[ ] Davis-Bacon (federal)
      - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits.
      - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions.
      - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract.
      - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act.
      - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification.

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