Bill Text: IL SB1636 | 2019-2020 | 101st General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Contractor Prompt Payment Act. Provides that a retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract. Provides that after 50% of the contract is completed, the amount of retainage for any subsequent payment may not exceed 5%. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 11-2)

Status: (Passed) 2019-08-20 - Public Act . . . . . . . . . 101-0432 [SB1636 Detail]

Download: Illinois-2019-SB1636-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1636

Introduced 2/15/2019, by Sen. John G. Mulroe

SYNOPSIS AS INTRODUCED:
815 ILCS 603/20 new

Amends the Contractor Prompt Payment Act. Provides that a retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract. Provides that after 50% of the contract is completed, the amount of retainage for any subsequent payment may not exceed 5%. Effective immediately.
LRB101 06244 TAE 51270 b

A BILL FOR

SB1636LRB101 06244 TAE 51270 b
1 AN ACT concerning business.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Contractor Prompt Payment Act is amended by
5adding Section 20 as follows:
6 (815 ILCS 603/20 new)
7 Sec. 20. Retainage. No construction contract may permit
8the withholding of retainage from any payment in excess of the
9amounts permitted in this Section. A construction contract may
10provide for the withholding of retainage of up to 10% of any
11payment made prior to the completion of 50% of the contract.
12When a contract is 50% complete, retainage withheld shall be
13reduced so that no more than 5% is held. After the contract is
1450% complete, no more than 5% of the amount of any subsequent
15payments made under the contract may be held as retainage.
16 Section 99. Effective date. This Act takes effect upon
17becoming law.
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