093_SB2002 LRB093 09566 LCB 09804 b 1 AN ACT in relation to contracts. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Contractor Prompt Payment Act. 6 Section 5. Definitions. In this Act: 7 "Building and construction contract" means a contract or 8 subcontract, for the design, construction, alteration, 9 improvement, repair, or maintenance of Illinois real 10 property, except for contracts that require the expenditure 11 of public funds. 12 "Business day" means any calendar day except Saturday, 13 Sunday, or a federal holiday. 14 "Contractor" and "Subcontractor" shall have the meanings 15 ascribed them by the Mechanics Lien Act and cases 16 interpreting that Act. 17 Section 10. Building and construction contracts. All 18 building and construction contracts shall be deemed to 19 provide the following: 20 (a) Prompt payment. Upon application for payment in 21 accordance with the contract, an owner must pay a contractor 22 within 10 business days for work performed by that contractor 23 and about which there is no reasonable dispute. Upon receipt 24 of the payment from an owner, the contractor must forward 25 that payment within 10 business days of receipt to the 26 subcontractors who performed the work for which the payment 27 was made. 28 (b) Progress payments. Periodic progress payments shall 29 be made at least monthly, based upon reasonable estimates of 30 work completed. Payments made to comply with this subsection -2- LRB093 09566 LCB 09804 b 1 (b) shall not waive any right to a cause of action for 2 defects in the work. 3 (c) Retainer. A retainer may be required for contracts 4 made pursuant to this Act. The retainer shall not exceed 5% 5 of any progress payment. 6 (d) Application to subcontractors. Subcontractors shall 7 have the same rights and duties with respect to their 8 subcontractors as contractors have with their subcontractors. 9 (e) Waiver by agreement. The provisions of this Act may 10 be waived by express written agreement between the parties. 11 Section 20. Enforcement. A private civil action may be 12 brought under this Act to recover payments wrongfully 13 withheld, as well as 10% interest from the date the payment 14 was due and reasonable attorneys' fees and expenses incurred 15 in bringing the action. 16 Section 99. Effective date. This Act takes effect upon 17 becoming law.