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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4018
Introduced 2/28/2005, by Rep. JoAnn D. Osmond SYNOPSIS AS INTRODUCED:
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Creates the Construction Escrow Account Act. Provides that a construction contract may include a provision for the retention of a portion of any amount due under the contract. Provides that any retention shall be deposited into an escrow account and shall be distributed under the direction of the general contractor for the sole purpose of eliminating retention of subcontractors who have completed their work. Provides that, before any payment shall be made from the escrow account containing the retention, the general contractor shall certify the subcontractor's work as complete and acceptable. Provides that the general contractor shall inspect the work of the subcontractor no later than 7 days after notification by the subcontractor of completion. Provides that if the workmanship of the subcontractor is acceptable, the general contractor shall pay the subcontractor the remaining portion of his or her retention. Provides that if the workmanship of the subcontractor is not acceptable, the general contractor shall notify the subcontractor and shall specify any improvements or corrections that must be made by the subcontractor before the retention shall be paid the retention. Effective immediately.
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A BILL FOR
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HB4018 |
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LRB094 09844 LCB 42199 b |
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| AN ACT concerning construction.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the |
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| Construction Escrow Account Act.
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| Section 5. Definitions. As used in this Act: |
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| "Construction contract" means a written agreement relating |
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| to the construction, alteration, repair, maintenance, moving, |
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| or demolition of any building, structure, or improvement or |
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| relating to the excavation of or other development or |
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| improvement to land. "Construction contract" includes a |
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| subcontract for any of these provisions.
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| "General contractor" means any entity that has a direct |
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| contract with an owner to perform work under a construction |
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| contract. |
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| "Retention" means funds due and payable for satisfactory |
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| performance under a construction contract, but withheld until |
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| substantial completion, or as set forth in the construction |
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| contract documents.
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| "Subcontractor" means any entity that has a direct contract |
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| with a prime contractor to perform a portion of the work under |
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| a construction contract.
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| Section 10. Escrow account; deposits.
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| (a) A construction contract may include a provision for the |
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| retention of a portion of any amount due under the contract. |
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| (b) Any retention shall be deposited into an escrow account |
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| and shall be distributed under the direction of the general |
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| contractor for the sole purpose of eliminating retention of |
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| subcontractors who have completed their work.
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| Section 15. Payment; inspection.
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