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| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3052 Introduced 2/15/2018, by Sen. John G. Mulroe SYNOPSIS AS INTRODUCED:
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Amends the Contractor Prompt Payment Act. Prohibits the withholding of a retainage from progress payments or final payments in excess of 5% of the payment. Effective immediately.
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| | A BILL FOR |
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| | SB3052 | | LRB100 19273 JLS 34539 b |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Contractor Prompt Payment Act is amended by |
| 5 | | adding Section 20 as follows:
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| 6 | | (815 ILCS 603/20 new) |
| 7 | | Sec. 20. Retainage; 5% limit. A provision in a construction |
| 8 | | contract that permits the withholding of retainage from a |
| 9 | | progress payment or final payment in an amount that exceeds 5% |
| 10 | | of that payment is against public policy and unenforceable.
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| 11 | | Section 99. Effective date. This Act takes effect upon |
| 12 | | becoming law.
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