Illinois General Assembly - Full Text of SB3052
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Full Text of SB3052  100th General Assembly

SB3052enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB3052 EnrolledLRB100 19273 JLS 34539 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.