HB2916 101ST GENERAL ASSEMBLY

LRB101 06245 TAE 51271 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2916

Introduced , by Rep. Luis Arroyo

SYNOPSIS AS INTRODUCED:

815 ILCS 603/20 new

Amends the Contractor Prompt Payment Act. Provides that a retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract. Provides that after 50% of the contract is completed, the amount of retainage for any subsequent payment may not exceed 5%. Effective immediately.

A BILL FOR

AN ACT concerning business.

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

Section 5. The Contractor Prompt Payment Act is amended by adding Section 20 as follows:

(815 ILCS 603/20 new)

Sec. 20. Retainage. No construction contract may permit the withholding of retainage from any payment in excess of the amounts permitted in this Section. A construction contract may provide for the withholding of retainage of up to 10% of any payment made prior to the completion of 50% of the contract. When a contract is 50% complete, retainage withheld shall be reduced so that no more than 5% is held. After the contract is 50% complete, no more than 5% of the amount of any subsequent payments made under the contract may be held as retainage.

Section 99. Effective date. This Act takes effect upon becoming law.