State of Illinois
92^nd General Assembly
Legislation

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92_SB2293eng

 
SB2293 Engrossed                               LRB9215422JMmb

 1        AN ACT in relation to State purchasing.

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

 4        Section 5.  The Illinois Procurement Code is  amended  by
 5    changing Section 30-25 as follows:

 6        (30 ILCS 500/30-25)
 7        Sec. 30-25.  Retention of a percentage of contract price.
 8    Whenever Any contract entered into by the Capital Development
 9    Board  a  construction  agency  for  the  repair, remodeling,
10    renovation, or construction of a building or  structure,  for
11    the  construction or maintenance of a highway, as those terms
12    are defined in Article 2 of the Illinois Highway Code, or for
13    the reclamation of abandoned lands as those terms are defined
14    in  Article  I  of  the  Abandoned  Mined  Lands  and   Water
15    Reclamation  Act  may provide provides for the retention of a
16    percentage not to exceed 5% of the contract price until final
17    completion and acceptance of the work., Upon the  request  of
18    the   contractor   and  with  the  approval  of  the  Capital
19    Development Board construction agency the amount so  retained
20    may  be  deposited  under  a trust agreement with an Illinois
21    bank or financial institution of the contractor's choice  and
22    subject  to  the  approval  of  the Capital Development Board
23    construction  agency.    The  contractor  shall  receive  any
24    interest on the deposited amount.  Upon  application  by  the
25    contractor,  the  trust agreement must contain, at a minimum,
26    the following provisions:
27             (1)  the amount  to  be  deposited  subject  to  the
28        trust;
29             (2)  the  terms and conditions of payment in case of
30        default by the contractor;
31             (3)  the termination of  the  trust  agreement  upon
 
SB2293 Engrossed            -2-                LRB9215422JMmb
 1        completion of the contract; and
 2             (4)  the   contractor   shall   be  responsible  for
 3        obtaining the written consent of the bank trustee and for
 4        any costs or service fees.
 5        The trust agreement may, at the discretion of the Capital
 6    Development Board construction agency and upon request of the
 7    contractor, become effective at the time of the first partial
 8    payment in accordance with existing statutes and rules.
 9    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)

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