Bill Text: IL HB5790 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Contractor Prompt Payment Act. Provides that a public construction contract may provide for the withholding of retainage of up to 5% (rather than 10%) of any payment made prior to the completion of 50% of the contract. Provides that when a contract is 50% complete, retainage withheld shall be reduced so that no more than 1% (rather than 5%) is held. Provides that after the contract is 50% complete, no more than 1% (rather than 5%) of the amount of any subsequent payments made under the contract may be held as retainage.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-11-16 - Referred to Rules Committee [HB5790 Detail]
Download: Illinois-2021-HB5790-Introduced.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Contractor Prompt Payment Act is amended by | |||||||||||||||||||
5 | changing Section 20 as follows:
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6 | (815 ILCS 603/20) | |||||||||||||||||||
7 | Sec. 20. Retainage. No construction contract may permit | |||||||||||||||||||
8 | the withholding of retainage from any payment in excess of the | |||||||||||||||||||
9 | amounts permitted in this Section. A construction contract may | |||||||||||||||||||
10 | provide for the withholding of retainage of up to 5% 10% of any | |||||||||||||||||||
11 | payment made prior to the completion of 50% of the contract. | |||||||||||||||||||
12 | When a contract is 50% complete, retainage withheld shall be | |||||||||||||||||||
13 | reduced so that no more than 1% 5% is held. After the contract | |||||||||||||||||||
14 | is 50% complete, no more than 1% 5% of the amount of any | |||||||||||||||||||
15 | subsequent payments made under the contract may be held as | |||||||||||||||||||
16 | retainage.
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17 | (Source: P.A. 101-432, eff. 8-20-19.)
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