093_SB1336enr

 
SB1336 Enrolled                      LRB093 08423 BDD 08645 b

 1        AN ACT concerning public construction.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The Public Construction Bond Act is amended
 5    by changing Section 1 as follows:

 6        (30 ILCS 550/1) (from Ch. 29, par. 15)
 7        Sec. 1.  Except as otherwise provided by  this  Act,  all
 8    officials, boards, commissions or agents of this State, or of
 9    any  political  subdivision  thereof  in making contracts for
10    public work of any kind costing over $5,000 to  be  performed
11    for  the  State,  or  a  political  subdivision thereof shall
12    require every contractor for the work to furnish, supply  and
13    deliver  a bond to the State, or to the political subdivision
14    thereof entering into the contract, as the case may be,  with
15    good and sufficient sureties. The amount of the bond shall be
16    fixed by the officials, boards, commissions, commissioners or
17    agents,  and  the  bond,  among  other  conditions,  shall be
18    conditioned for the  completion  of  the  contract,  for  the
19    payment  of  material  used  in  the  work  and for all labor
20    performed in the work, whether by subcontractor or otherwise.
21        If the contract is for emergency repairs as  provided  in
22    the  Illinois  Procurement  Code,  proof  of  payment for all
23    labor, materials, apparatus, fixtures, and machinery  may  be
24    furnished in lieu of the bond required by this Section.
25        Each  such  bond  is  deemed  to  contain  the  following
26    provisions  whether such provisions are inserted in such bond
27    or not:
28        "The principal and sureties on this bond agree  that  all
29    the undertakings, covenants, terms, conditions and agreements
30    of  the  contract  or  contracts  entered  into  between  the
31    principal  and the State or any political subdivision thereof
 
SB1336 Enrolled            -2-       LRB093 08423 BDD 08645 b
 1    will be performed and fulfilled and to pay all persons, firms
 2    and corporations having contracts with the principal or  with
 3    subcontractors, all just claims due them under the provisions
 4    of  such contracts for labor performed or materials furnished
 5    in the performance of the contract on account of  which  this
 6    bond  is given, when such claims are not satisfied out of the
 7    contract price of the contract on account of which this  bond
 8    is  given, after final settlement between the officer, board,
 9    commission  or  agent  of  the  State  or  of  any  political
10    subdivision thereof and the principal has been made."
11        The surety bond required by this Section may be  acquired
12    from the company, agent or broker of the contractor's choice.
13    The  bond  and  sureties  shall  be  subject  to the right of
14    reasonable approval or disapproval, including suspension,  by
15    the  State or political subdivision thereof concerned. In the
16    case of State construction contracts, a contractor shall  not
17    be  required  to  post  a  cash  bond  or letter of credit in
18    addition to or as a substitute for the surety  bond  required
19    by this Section.
20        When  other than motor fuel tax funds, federal-aid funds,
21    or other funds received from the State are used, a  political
22    subdivision   may   allow   the   contractor   to  provide  a
23    non-diminishing irrevocable bank letter of credit, in lieu of
24    the  bond  required  by  this  Section,  on  contracts  under
25    $100,000 to comply with the  requirements  of  this  Section.
26    Any  such  bank letter of credit shall contain all provisions
27    required for bonds by this Section.
28    (Source: P.A. 91-456, eff. 8-6-99.)