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91_SB0812
LRB9105554MWgc
1 AN ACT in relation to public construction contracts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Public Construction Contract Act.
6 Section 5. Definitions. As used in this Act:
7 "Contractor" means a person who contracts with a
8 governmental entity to improve real property or to perform or
9 manage construction. "Contractor" does not mean a person
10 licensed under the Illinois Architecture Practice Act of
11 1989, the Illinois Professional Land Surveyor Act of 1989, or
12 the Professional Engineering Practice Act of 1989.
13 "Governmental entity" means the State, a State agency, a
14 county, a municipality, a township, a public educational
15 institution, or any political subdivision thereof.
16 "Improve" means to build, alter, repair, or demolish an
17 improvement on, connected with, or beneath the surface of any
18 real property; to excavate, clear, grade, fill, or landscape
19 any real property; to construct driveways or roadways; or to
20 perform labor on improvements.
21 "Improvement" includes, but is not limited to, all or any
22 part of any building, structure, erection, alteration,
23 demolition, excavation, clearing, grading, filling,
24 landscaping, trees, shrubbery, driveways, or roadways on real
25 property.
26 "Person" means an individual, corporation, partnership,
27 association, governmental entity, or any other legal entity.
28 "Real property" means the real estate that is improved,
29 including, but not limited to, lands, leaseholds, tenements,
30 hereditaments, and improvements placed on the real estate.
31 "State agency" means all officers, boards, commissions,
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1 agencies, institutions, authorities, universities, bodies
2 politic and corporate of the State, and administrative units
3 of the State whether in the executive, legislative, or
4 judicial branch, other than the circuit court, units of local
5 government, school districts, and boards of election
6 commissioners. "State agency" does not include the Department
7 of Transportation and the Capital Development Board.
8 Section 10. Contract requirements. If a contract
9 between a contractor and a governmental entity for an
10 improvement exceeds $75,000, all of the following provisions
11 apply to that contract:
12 (1) If a contractor discovers one or both of the
13 following physical conditions at the surface or subsurface of
14 the site, the contractor must notify the governmental entity
15 of the condition, in writing, before disturbing the site:
16 (A) A subsurface or latent physical condition at
17 the site differing materially from conditions indicated
18 in the contract.
19 (B) An unknown physical condition at the site of an
20 unusual nature differing materially form the conditions
21 ordinarily encountered and general recognized as
22 inhereing in work of the kind provided for in the
23 contract.
24 (2) If the governmental entity receives notice from the
25 contractor under subdivision (1), the governmental entity
26 must promptly investigate the physical condition.
27 (3) If the governmental entity determines that the
28 physical condition (i) does materially differ from the
29 conditions indicated in the contract or ordinarily
30 encountered in the work of the kind provided for in the
31 contract and (ii) will cause an increase or decrease in the
32 costs or time needed to perform the contract, the
33 governmental entity must make an equitable adjustment to and
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1 modify the contract in writing.
2 (4) The contractor may not make a claim for additional
3 costs or time because of a physical condition at the site,
4 unless the contractor has provided notice to the governmental
5 entity under subdivision (1).
6 (5) The contractor may not make a claim for an
7 adjustment after the contractor has received a final payment
8 under the contract.
9 Section 15. Completion of performance. If a contractor
10 does not agree with a determination made by a governmental
11 entity, the contractor may, with the consent of the
12 governmental entity, complete performance of the contract.
13 Section 20. Arbitration. A contractor and governmental
14 entity, except for the State or a State agency, shall
15 arbitrate the contractor's entitlement to recover the actual
16 increase in contract time or costs incurred because of a
17 physical condition at the site. The arbitration must be
18 conducted in accordance with the rules of the American
19 Arbitration Association. The judgment rendered may be
20 entered in any court having jurisdiction over the matter.
21 Section 25. Incorporation into contract. The provisions
22 of Section 10 of this Act are incorporated into and
23 considered a part of every contract for improvements between
24 a contractor and governmental entity.
25 Section 30. Limitation. Nothing in this Act limits the
26 rights or remedies otherwise available to a contractor or
27 governmental entity under any other law or under the
28 Constitution of the State of Illinois.
29 Section 99. Effective date. This Act takes effect upon
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1 becoming law.