State of Illinois
91st General Assembly
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Public Act 91-0647

SB812 Enrolled                                 LRB9105554MWgc

    AN ACT in relation to public construction contracts.

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

    Section  1.  Short  title.   This Act may be cited as the
Public Construction Contract Act.

    Section 5.  Definitions.  As used in this Act:
    "Contractor"  means  a  person  who  contracts   with   a
governmental entity to improve real property or to perform or
manage  construction.   "Contractor"  does  not mean a person
licensed under the  Illinois  Architecture  Practice  Act  of
1989, the Illinois Professional Land Surveyor Act of 1989, or
the Professional Engineering Practice Act of 1989.
    "Governmental  entity"  means a county, a municipality, a
township,  a  public  educational  institution,   a   special
district,    or    any    political    subdivision   thereof.
"Governmental entity" does not include the Metropolitan Water
Reclamation District.
    "Improve" means to build, alter, repair, or  demolish  an
improvement on, connected with, or beneath the surface of any
real  property; to excavate, clear, grade, fill, or landscape
any real property; to construct driveways or roadways; or  to
perform labor on improvements.
    "Improvement" includes, but is not limited to, all or any
part   of  any  building,  structure,  erection,  alteration,
demolition,   excavation,   clearing,    grading,    filling,
landscaping, trees, shrubbery, driveways, or roadways on real
    "Person"  means  an individual, corporation, partnership,
association, governmental entity, or any other legal entity.
    "Real property" means the real estate that  is  improved,
including,  but not limited to, lands, leaseholds, tenements,
hereditaments, and improvements placed on the real estate.

    Section  10.  Contract  requirements.   If   a   contract
between  a  contractor  and  a  governmental  entity  for  an
improvement  exceeds $75,000, all of the following provisions
apply to that contract:
    (1)  If  a  contractor  discovers  one  or  both  of  the
following physical conditions at the surface or subsurface of
the site, the contractor must notify the governmental  entity
of   the   condition,   in  writing,  before  disturbing  the
         (A)  A subsurface or latent  physical  condition  at
    the  site  differing materially from conditions indicated
    in the contract.
         (B)  An unknown physical condition at the site of an
    unusual nature differing materially from  the  conditions
    ordinarily   encountered   and  generally  recognized  as
    inhering  in  work  of  the  kind  provided  for  in  the
    (2)  If the governmental entity receives notice from  the
contractor  under  subdivision  (1),  the governmental entity
must promptly investigate the physical condition.
    (3)  If  the  governmental  entity  determines  that  the
physical  condition  (i)  does  materially  differ  from  the
conditions  indicated   in   the   contract   or   ordinarily
encountered  in  the  work  of  the  kind provided for in the
contract and (ii) will cause an increase or decrease  in  the
costs   or   time   needed   to  perform  the  contract,  the
governmental entity must make an equitable adjustment to  and
modify the contract in writing.
    (4)  The  contractor  may not make a claim for additional
costs or time because of a physical condition  at  the  site,
unless the contractor has provided notice to the governmental
entity under subdivision (1).
    (5)  The   contractor   may  not  make  a  claim  for  an
adjustment after the contractor has received a final  payment
under the contract.

    Section  15.  Arbitration.  A contractor and governmental
entity may, by mutual agreement, arbitrate  the  contractor's
entitlement  to  recover the actual increase in contract time
or costs incurred because of  a  physical  condition  at  the
site.   The  judgment  rendered  may  be entered in any court
having jurisdiction over the matter.

    Section 20.  Incorporation into contract.  The provisions
of  Section  10  of  this  Act  are  incorporated  into   and
considered  a part of every contract for improvements between
a contractor and governmental entity.

    Section 25.  Limitation.  Nothing in this Act limits  the
rights  or  remedies  otherwise  available to a contractor or
governmental  entity  under  any  other  law  or  under   the
Constitution of the State of Illinois.

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

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