Sen. John G. Mulroe

Filed: 4/13/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 3052 by replacing
3everything after the enacting clause with the following:
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.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.".