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

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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-Engrossed.html

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SB1636 Engrossed LRB101 06244 TAE 51270 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Contractor Prompt Payment Act is amended by
adding Section 20 as follows:
(815 ILCS 603/20 new)
Sec. 20. Retainage. No construction contract may permit
the withholding of retainage from any payment in excess of the
amounts permitted in this Section. A construction contract may
provide for the withholding of retainage of up to 10% of any
payment made prior to the completion of 50% of the contract.
When a contract is 50% complete, retainage withheld shall be
reduced so that no more than 5% is held. After the contract is
50% complete, no more than 5% of the amount of any subsequent
payments made under the contract may be held as retainage.
Section 99. Effective date. This Act takes effect upon
becoming law.