Bill Text: IL SB3052 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Contractor Prompt Payment Act. Prohibits the withholding of a retainage from progress payments or final payments in excess of 5% of the payment. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 18-1)
Status: (Failed) 2018-11-28 - Total Veto Stands [SB3052 Detail]
Download: Illinois-2017-SB3052-Engrossed.html
Bill Title: Amends the Contractor Prompt Payment Act. Prohibits the withholding of a retainage from progress payments or final payments in excess of 5% of the payment. Effective immediately.
Spectrum: Strong Partisan Bill (Democrat 18-1)
Status: (Failed) 2018-11-28 - Total Veto Stands [SB3052 Detail]
Download: Illinois-2017-SB3052-Engrossed.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 | adding Section 20 as follows:
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| 6 | (815 ILCS 603/20 new) | ||||||
| 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 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 5% is held. After the contract is | ||||||
| 14 | 50% complete, no more than 5% of the amount of any subsequent | ||||||
| 15 | payments made under the contract may be held as retainage.
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| 16 | Section 99. Effective date. This Act takes effect upon | ||||||
| 17 | becoming law.
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