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| | SB1636 Engrossed | | LRB101 06244 TAE 51270 b |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Contractor Prompt Payment Act is amended by |
| 5 | | adding Section 20 as follows:
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| 6 | | (815 ILCS 603/20 new) |
| 7 | | Sec. 20. Retainage. No construction contract may permit |
| 8 | | the withholding of retainage from any payment in excess of the |
| 9 | | amounts permitted in this Section. A construction contract may |
| 10 | | provide for the withholding of retainage of up to 10% of any |
| 11 | | payment made prior to the completion of 50% of the contract. |
| 12 | | When a contract is 50% complete, retainage withheld shall be |
| 13 | | reduced so that no more than 5% is held. After the contract is |
| 14 | | 50% complete, no more than 5% of the amount of any subsequent |
| 15 | | payments made under the contract may be held as retainage.
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| 16 | | Section 99. Effective date. This Act takes effect upon |
| 17 | | becoming law.
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