605 ILCS 5/4-103

(605 ILCS 5/4-103) (from Ch. 121, par. 4-103)

Sec. 4-103.

Any contracts that may be entered into for the construction of
highways shall be let after due public advertisement to the
lowest responsible bidder, or bidders, upon terms and conditions to be
fixed by the Department, and the Department shall also require the
successful bidder, or bidders, to furnish good and sufficient bonds to
insure proper and prompt completion of such work in accordance with the
provisions of such contracts.

Partial payments may be made for the work as it progresses provided that
the Department retains an amount as required by the Standard Specifications
for Road and Bridge construction.

At the request of the contractor and with the approval of the Department
the retainage of the contract may be deposited under a trust agreement with
an Illinois financial institution, whose deposits are insured by an
agency or instrumentality of the federal government, of the
contractor's choice and subject to the approval of
the Department.

The contractor shall receive any interest thereon.

Pursuant to application by the contractor, a trust agreement by the
financial institution
and the Department shall contain as a minimum, the following provisions:

a. The amount to be deposited subject to the trust;

b. The terms and conditions of payment in case of default of the
contractor;

c. The termination of the trust agreement upon completion of the
contract.

The contractor shall be responsible for obtaining the written consent of
the financial institution trustee, and any costs or service
fees shall be borne by the
contractor.

The trust agreement may, at the discretion of the Department and upon
request of the contractor, become operative at the time of the first
partial payment in accordance with existing statutes and Department
procedures.

The provisions of this Section shall apply to all contracts in effect
on and after the effective date of this amendatory Act of 1981.

(Source: P.A. 84-1263.)