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:
 
815 ILCS 603/20

    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.


LRB102 28085 SPS 39888 b

 

 

A BILL FOR

 

HB5790LRB102 28085 SPS 39888 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Contractor Prompt Payment Act is amended by
5changing Section 20 as follows:
 
6    (815 ILCS 603/20)
7    Sec. 20. Retainage. No construction contract may permit
8the withholding of retainage from any payment in excess of the
9amounts permitted in this Section. A construction contract may
10provide for the withholding of retainage of up to 5% 10% of any
11payment made prior to the completion of 50% of the contract.
12When a contract is 50% complete, retainage withheld shall be
13reduced so that no more than 1% 5% is held. After the contract
14is 50% complete, no more than 1% 5% of the amount of any
15subsequent payments made under the contract may be held as
16retainage.
17(Source: P.A. 101-432, eff. 8-20-19.)