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HB1224 - 104th General Assembly
GOVT CONTRACT RETAINAGE
Last Action
House Sponsors
Rep. William "Will" Davis - Nicholas K. Smith, Dagmara Avelar, Diane Blair-Sherlock, Harry Benton, Rita Mayfield, Matt Hanson and La Shawn K. Ford
Senate Sponsors
(Sen. Willie Preston - Lakesia Collins - Mattie Hunter, Napoleon Harris, III and Laura M. Murphy)
Statutes Amended In Order of Appearance
New Act
30 ILCS 540/1from Ch. 127, par. 132.401
Synopsis As Introduced
Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the amount of any and all draw amounts submitted and approved under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract of the amount of any and all draw amounts submitted and approved under the terms of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act.
House Floor Amendment No. 3
Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Deletes the provisions that amended the State Prompt Payment Act. Provides that "retainage" does not include moneys withheld from grants to entities for capital improvements to non-State property. Provides that, if the contractor or subcontractor has displayed unsatisfactory performance on previous State agency projects resulting in a low performance score or suspension of prequalification, the State agency may apply retainage from the beginning of the project. Provides that, notwithstanding any other provision of law, if a State agency has not withheld retainage from a payment to a contractor on a project, then that contractor may not withhold retainage from a payment to a subcontractor for the same project. Provides that, if a State agency has withheld retainage from a contractor under the Act, then the contractor may withhold retainage from a payment to a subcontractor, but only to the extent that the amount retained from payment to the contractor by the State agency is attributable to a failure on the part of the subcontractor to make satisfactory progress with respect to the subcontractor's contractual obligations. Specifies that the Act's limitations on retainage from subcontracts apply only to subcontracts that are entered into on or after the Act's effective date of the Act in connection with a State construction contract that is subject to the Act. Effective July 1, 2026.
Senate Committee Amendment No. 1
Deletes reference to:
New Act
30 ILCS 540/1from Ch. 127, par. 132.401
Adds reference to:
30 ILCS 550/1from Ch. 29, par. 15
Replaces everything after the enacting clause. Amends the Public Construction Bond Act. Provides that, before the completion of 50% of the contract for public works, the State or a local governmental unit, except for the Department of Transportation, may not withhold retainage from any payment to a contractor who furnishes the bond or bond substitute required by the Act in an amount in excess of 10% of any payment made before the date of completion of 50% of the contract for public works. Provides that, when a contract for public works is 50% complete, the State or the local governmental unit, except for the Department of Transportation, shall reduce the retainage so that no more than 5% is held. Allows a State agency, subject to these limitations, to withhold as retainage a portion of the moneys from the payment of a contract that is entered into on or after the effective date of the amendatory Act if and only if the State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made. Requires satisfactory progress to be clearly provided for in the contract between the State agency and the contractor or subcontractor. Provides that retainage may not be used as a substitute for good contract management, and the State agency may not withhold funds without cause. Provides that determinations to retain and the specific amount to be withheld must be made by the State agency on a case-by-case basis based on the performance of milestones under the current contract as provided for in the contract between the State agency and the contractor. Prohibits a contractor from withholding retainage from a subcontractor except to the extent a State agency has withheld retainage from the contractor which is attributable to that subcontractor's subcontract. Defines "retainage". Provides that nothing in the amendatory Act may be construed to modify any provision of the State Prompt Payment Act or the Local Government Prompt Payment Act. Effective June 1, 2027.
Senate Floor Amendment No. 3
Provides that the provision does not apply to the Illinois State Toll Highway Authority.
Actions
| Date | Chamber | Action |
|---|---|---|
| 1/09/2025 | House | Filed with the Clerk by Rep. William "Will" Davis |
| 1/09/2025 | House | First Reading |
| 1/09/2025 | House | Referred to Rules Committee |
| 1/28/2025 | House | Added Co-Sponsor Rep. Dagmara Avelar |
| 1/29/2025 | House | Added Co-Sponsor Rep. Diane Blair-Sherlock |
| 2/06/2025 | House | Added Co-Sponsor Rep. Harry Benton |
| 2/11/2025 | House | Assigned to State Government Administration Committee |
| 2/19/2025 | House | Added Co-Sponsor Rep. Rita Mayfield |
| 2/19/2025 | House | Do Pass / Short Debate State Government Administration Committee; 009-000-000 |
| 2/20/2025 | House | Placed on Calendar 2nd Reading - Short Debate |
| 2/26/2025 | House | House Floor Amendment No. 1 Filed with Clerk by Rep. William "Will" Davis |
| 2/26/2025 | House | House Floor Amendment No. 1 Referred to Rules Committee |
| 3/04/2025 | House | House Floor Amendment No. 1 Rules Refers to State Government Administration Committee |
| 3/07/2025 | House | Added Co-Sponsor Rep. Matt Hanson |
| 3/14/2025 | House | Added Co-Sponsor Rep. Martin McLaughlin |
| 3/14/2025 | House | Removed Co-Sponsor Rep. Martin McLaughlin |
| 3/19/2025 | House | House Floor Amendment No. 2 Filed with Clerk by Rep. William "Will" Davis |
| 3/19/2025 | House | House Floor Amendment No. 2 Referred to Rules Committee |
| 3/19/2025 | House | Added Chief Co-Sponsor Rep. Nicholas K. Smith |
| 3/20/2025 | House | House Floor Amendment No. 2 Rules Refers to State Government Administration Committee |
| 3/26/2025 | House | Second Reading - Short Debate |
| 3/26/2025 | House | Held on Calendar Order of Second Reading - Short Debate |
| 4/02/2025 | House | House Floor Amendment No. 3 Filed with Clerk by Rep. William "Will" Davis |
| 4/02/2025 | House | House Floor Amendment No. 3 Referred to Rules Committee |
| 4/07/2025 | House | Added Co-Sponsor Rep. Jennifer Sanalitro |
| 4/07/2025 | House | House Floor Amendment No. 3 Rules Refers to State Government Administration Committee |
| 4/07/2025 | House | House Floor Amendment No. 3 Recommends Be Adopted State Government Administration Committee; 005-003-000 |
| 4/07/2025 | House | Removed Co-Sponsor Rep. Jennifer Sanalitro |
| 4/08/2025 | House | Added Co-Sponsor Rep. La Shawn K. Ford |
| 4/09/2025 | House | House Floor Amendment No. 3 Adopted |
| 4/09/2025 | House | Placed on Calendar Order of 3rd Reading - Short Debate |
| 4/09/2025 | House | Third Reading - Short Debate - Passed 079-035-000 |
| 4/09/2025 | House | House Floor Amendment No. 1 Tabled |
| 4/09/2025 | House | House Floor Amendment No. 2 Tabled |
| 4/10/2025 | Senate | Arrive in Senate |
| 4/10/2025 | Senate | Placed on Calendar Order of First Reading |
| 4/10/2025 | Senate | Chief Senate Sponsor Sen. Willie Preston |
| 4/10/2025 | Senate | First Reading |
| 4/10/2025 | Senate | Referred to Assignments |
| 4/23/2025 | Senate | Assigned to Executive |
| 5/09/2025 | Senate | Rule 2-10 Committee Deadline Established As May 23, 2025 |
| 5/23/2025 | Senate | Rule 2-10 Committee Deadline Established As June 1, 2025 |
| 5/27/2025 | Senate | Senate Committee Amendment No. 1 Filed with Secretary by Sen. Willie Preston |
| 5/27/2025 | Senate | Senate Committee Amendment No. 1 Referred to Assignments |
| 5/28/2025 | Senate | Senate Committee Amendment No. 1 Assignments Refers to Executive |
| 5/28/2025 | Senate | Rule 2-10 Third Reading/Passage Deadline Established As June 1, 2025 |
| 5/28/2025 | Senate | Senate Committee Amendment No. 1 Adopted |
| 5/28/2025 | Senate | Do Pass as Amended Executive; 013-000-000 |
| 5/28/2025 | Senate | Placed on Calendar Order of 2nd Reading May 29, 2025 |
| 5/29/2025 | Senate | Second Reading |
| 5/29/2025 | Senate | Placed on Calendar Order of 3rd Reading May 30, 2025 |
| 5/29/2025 | Senate | Senate Floor Amendment No. 2 Filed with Secretary by Sen. Willie Preston |
| 5/29/2025 | Senate | Senate Floor Amendment No. 2 Referred to Assignments |
| 5/30/2025 | Senate | Senate Floor Amendment No. 3 Filed with Secretary by Sen. Willie Preston |
| 5/30/2025 | Senate | Senate Floor Amendment No. 3 Referred to Assignments |
| 5/30/2025 | Senate | Senate Floor Amendment No. 2 Assignments Refers to Executive |
| 5/30/2025 | Senate | Senate Floor Amendment No. 3 Assignments Refers to Executive |
| 5/30/2025 | Senate | Senate Floor Amendment No. 2 Postponed - Executive |
| 5/30/2025 | Senate | Senate Floor Amendment No. 3 Recommend Do Adopt Executive; 012-000-000 |
| 5/31/2025 | Senate | Recalled to Second Reading |
| 5/31/2025 | Senate | Senate Floor Amendment No. 3 Adopted; Preston |
| 5/31/2025 | Senate | Placed on Calendar Order of 3rd Reading |
| 5/31/2025 | Senate | Third Reading - Passed; 056-000-000 |
| 5/31/2025 | Senate | Senate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a) |
| 5/31/2025 | Senate | Added as Alternate Chief Co-Sponsor Sen. Mattie Hunter |
| 5/31/2025 | Senate | Added as Alternate Chief Co-Sponsor Sen. Lakesia Collins |
| 5/31/2025 | Senate | Alternate Chief Co-Sponsor Changed to Sen. Lakesia Collins |
| 5/31/2025 | Senate | Alternate Chief Co-Sponsor Changed to Sen. Mattie Hunter |
| 5/31/2025 | House | Arrived in House |
| 5/31/2025 | House | Placed on Calendar Order of Concurrence Senate Amendment(s) 1, 3 |
| 5/31/2025 | Senate | Added as Alternate Co-Sponsor Sen. Napoleon Harris, III |
| 5/31/2025 | House | Senate Committee Amendment No. 1 Motion Filed Concur Rep. William "Will" Davis |
| 5/31/2025 | House | Senate Floor Amendment No. 3 Motion Filed Concur Rep. William "Will" Davis |
| 5/31/2025 | House | Senate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee |
| 5/31/2025 | House | Senate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee |
| 5/31/2025 | House | Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000 |
| 5/31/2025 | House | Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000 |
| 5/31/2025 | House | Motion Filed to Suspend House Rule(s) for Immediate Consideration Rep. Bob Morgan |
| 5/31/2025 | House | Motion Prevailed to Suspend Rule 073-039-000 |
| 6/01/2025 | House | Senate Committee Amendment No. 1 House Concurs 086-028-000 |
| 6/01/2025 | House | Senate Floor Amendment No. 3 House Concurs 086-028-000 |
| 6/01/2025 | House | House Concurs |
| 6/01/2025 | House | Passed Both Houses |
| 6/01/2025 | Senate | Added as Alternate Co-Sponsor Sen. Laura M. Murphy |
| 6/24/2025 | House | Sent to the Governor |