|SB3052 Enrolled||LRB100 19273 JLS 34539 b|
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Contractor Prompt Payment Act is amended by
adding Section 20 as follows:
(815 ILCS 603/20 new)
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.
This Act takes effect upon