HB5790 102ND GENERAL ASSEMBLY

LRB102 28085 SPS 39888 b

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.

A BILL FOR

AN ACT concerning business.

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

Section 5. The Contractor Prompt Payment Act is amended by changing Section 20 as follows:

(815 ILCS 603/20)

Sec. 20. Retainage. No construction contract may permit the withholding of retainage from any payment in excess of the amounts permitted in this Section. A construction contract may provide for the withholding of retainage of up to 5% 10% of any payment made prior to the completion of 50% of the contract. When a contract is 50% complete, retainage withheld shall be reduced so that no more than 1% 5% is held. After the contract is 50% complete, no more than 1% 5% of the amount of any subsequent payments made under the contract may be held as retainage.

(Source: P.A. 101-432, eff. 8-20-19.)