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91_HB1810
LRB9104289KSpc
1 AN ACT to amend the Illinois Highway Code by changing
2 Section 4-103.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Highway Code is amended by
6 changing Section 4-103 as follows:
7 (605 ILCS 5/4-103) (from Ch. 121, par. 4-103)
8 Sec. 4-103. Letting contracts for construction of
9 highways. Any contracts that may be entered into for the
10 construction of highways shall be let after due public
11 advertisement to the lowest responsible bidder, or bidders,
12 upon terms and conditions to be fixed by the Department, and
13 the Department shall also require the successful bidder, or
14 bidders, to furnish good and sufficient bonds to insure
15 proper and prompt completion of such work in accordance with
16 the provisions of such contracts.
17 Partial payments may be made for the work as it
18 progresses provided that the Department retains an amount as
19 required by the Standard Specifications for Road and Bridge
20 construction.
21 At the request of the contractor and with the approval of
22 the Department the retainage of the contract may be deposited
23 under a trust agreement with an Illinois financial
24 institution, whose deposits are insured by an agency or
25 instrumentality of the federal government, of the
26 contractor's choice and subject to the approval of the
27 Department.
28 The contractor shall receive any interest thereon.
29 Pursuant to application by the contractor, a trust
30 agreement by the financial institution and the Department
31 shall contain as a minimum, the following provisions:
-2- LRB9104289KSpc
1 a. The amount to be deposited subject to the trust;
2 b. The terms and conditions of payment in case of
3 default of the contractor;
4 c. The termination of the trust agreement upon
5 completion of the contract.
6 The contractor shall be responsible for obtaining the
7 written consent of the financial institution trustee, and any
8 costs or service fees shall be borne by the contractor.
9 The trust agreement may, at the discretion of the
10 Department and upon request of the contractor, become
11 operative at the time of the first partial payment in
12 accordance with existing statutes and Department procedures.
13 The provisions of this Section shall apply to all
14 contracts in effect on and after the effective date of this
15 amendatory Act of 1981.
16 (Source: P.A. 84-1263.)