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Public Act 101-0432
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| SB1636 Enrolled | LRB101 06244 TAE 51270 b |
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AN ACT concerning business.
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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 5. The Contractor Prompt Payment Act is amended by |
adding Section 20 as follows:
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(815 ILCS 603/20 new) |
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 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 5% is held. After the contract is |
50% complete, no more than 5% of the amount of any subsequent |
payments made under the contract may be held as retainage.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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