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(50 ILCS 505/9)
(from Ch. 85, par. 5609)
Payments to subcontractors and material suppliers; failure to make timely payments; additional amount due.
When a contractor receives any payment, the contractor shall
pay each subcontractor and material supplier in proportion to the work
completed by each subcontractor and material supplier their application
less any retention. If the contractor receives less than the full payment
due under the public construction contract, the contractor shall be
obligated to disburse on a pro rata basis those funds received, with the
contractor, subcontractors and material suppliers each receiving a prorated
portion based on the amount of payment. All interest payments received pursuant to Section 4 also shall be disbursed to subcontractors and material suppliers to whom payment has been delayed, on a pro rata basis. When, however, the public owner
does not release the full payment due under the contract because there are
specific areas of work or materials the contractor is rejecting or because
the contractor has otherwise determined such areas are not suitable for
payment, then those specific subcontractors or suppliers involved shall not
be paid for that portion of the work rejected or deemed not suitable for
payment and all other subcontractors and suppliers shall be paid in full.
If the contractor, without reasonable cause, fails to make any payment to
his subcontractors and material suppliers within 15 days after receipt of
payment under the public construction contract, the contractor shall pay to
his subcontractors and material suppliers, in addition to the payment due
them, interest in the amount of 2% per month, calculated from the
expiration of the 15-day period until fully paid. This Section shall
also apply to any payments made by subcontractors and material suppliers to
their subcontractors and material suppliers and to all payments made to
lower tier subcontractors and material suppliers throughout the contracting
(Source: P.A. 94-972, eff. 7-1-07