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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5790 Introduced 11/16/2022, by Rep. Eva-Dina Delgado and Barbara Hernandez SYNOPSIS AS INTRODUCED:
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Amends the Contractor Prompt Payment Act. Provides that a public construction contract may provide for the withholding of retainage of up to 5% (rather than 10%) of any payment made prior to the completion of 50% of the contract. Provides that when a contract is 50% complete, retainage withheld shall be reduced so that no more than 1% (rather than 5%) is held. Provides that after the contract is 50% complete, no more than 1% (rather than 5%) of the amount of any subsequent payments made under the contract may be held as retainage.
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| | A BILL FOR |
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| | HB5790 | | LRB102 28085 SPS 39888 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 | | changing Section 20 as follows:
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| 6 | | (815 ILCS 603/20) |
| 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 5% 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 1% 5% is held. After the contract |
| 14 | | is 50% complete, no more than 1% 5% of the amount of any |
| 15 | | subsequent payments made under the contract may be held as |
| 16 | | retainage.
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| 17 | | (Source: P.A. 101-432, eff. 8-20-19.)
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