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91_SB0812sam001
LRB9105554MWgcam01
1 AMENDMENT TO SENATE BILL 812
2 AMENDMENT NO. . Amend Senate Bill 812 by replacing
3 everything after the enacting clause with the following:
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 a county, a municipality, a
14 township, a public educational institution, a special
15 district, 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,
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1 demolition, excavation, clearing, grading, filling,
2 landscaping, trees, shrubbery, driveways, or roadways on real
3 property.
4 "Person" means an individual, corporation, partnership,
5 association, governmental entity, or any other legal entity.
6 "Real property" means the real estate that is improved,
7 including, but not limited to, lands, leaseholds, tenements,
8 hereditaments, and improvements placed on the real estate.
9 Section 10. Contract requirements. If a contract
10 between a contractor and a governmental entity for an
11 improvement exceeds $75,000, all of the following provisions
12 apply to that contract:
13 (1) If a contractor discovers one or both of the
14 following physical conditions at the surface or subsurface of
15 the site, the contractor must notify the governmental entity
16 of the condition, in writing, before disturbing the site:
17 (A) A subsurface or latent physical condition at
18 the site differing materially from conditions indicated
19 in the contract.
20 (B) An unknown physical condition at the site of an
21 unusual nature differing materially form the conditions
22 ordinarily encountered and general recognized as
23 inhereing in work of the kind provided for in the
24 contract.
25 (2) If the governmental entity receives notice from the
26 contractor under subdivision (1), the governmental entity
27 must promptly investigate the physical condition.
28 (3) If the governmental entity determines that the
29 physical condition (i) does materially differ from the
30 conditions indicated in the contract or ordinarily
31 encountered in the work of the kind provided for in the
32 contract and (ii) will cause an increase or decrease in the
33 costs or time needed to perform the contract, the
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1 governmental entity must make an equitable adjustment to and
2 modify the contract in writing.
3 (4) The contractor may not make a claim for additional
4 costs or time because of a physical condition at the site,
5 unless the contractor has provided notice to the governmental
6 entity under subdivision (1).
7 (5) The contractor may not make a claim for an
8 adjustment after the contractor has received a final payment
9 under the contract.
10 Section 15. Completion of performance. If a contractor
11 does not agree with a determination made by a governmental
12 entity, the contractor may, with the consent of the
13 governmental entity, complete performance of the contract.
14 Section 20. Arbitration. A contractor and governmental
15 entity shall arbitrate the contractor's entitlement to
16 recover the actual increase in contract time or costs
17 incurred because of a physical condition at the site. The
18 arbitration must be conducted in accordance with the rules of
19 the American Arbitration Association. The judgment rendered
20 may be entered in any court having jurisdiction over the
21 matter.
22 Section 25. Incorporation into contract. The provisions
23 of Section 10 of this Act are incorporated into and
24 considered a part of every contract for improvements between
25 a contractor and governmental entity.
26 Section 30. Limitation. Nothing in this Act limits the
27 rights or remedies otherwise available to a contractor or
28 governmental entity under any other law or under the
29 Constitution of the State of Illinois.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".