Public Act 93-0221

SB1336 Enrolled                      LRB093 08423 BDD 08645 b

    AN ACT concerning public construction.

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

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

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