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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_HB2724eng HB2724 Engrossed LRB9102003MWpc 1 AN ACT to amend the Public Construction Bond Act by 2 changing Section 1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Public Construction Bond Act is amended 6 by changing Section 1 as follows: 7 (30 ILCS 550/1) (from Ch. 29, par. 15) 8 Sec. 1. Except as otherwise provided by this Act, all 9 officials, boards, commissions or agents of this State, or of 10 any political subdivision thereof in making contracts for 11 public work of any kind costing over $5,000 to be performed 12 for the State, or a political subdivision thereof shall 13 require every contractor for thesuchwork to furnish, supply 14 and deliver a bond to the State, or to the political 15 subdivision thereof entering into thesuchcontract, as the 16 case may be, with good and sufficient sureties. The amount of 17 thesuchbond shall be fixed by thesuchofficials, boards, 18 commissions, commissioners or agents, and thesuchbond, 19 among other conditions, shall be conditioned for the 20 completion of the contract, for the payment of material used 21 in thesuchwork and for all labor performed in thesuch22 work, whether by subcontractor or otherwise. 23 If the contract is for emergency repairs as provided in 24 the Illinois Procurement Code, proof of payment for all 25 labor, materials, apparatus, fixtures, and machinery may be 26 furnished in lieu of the bond required by this Section. If 27 the contractor does not furnish a bond or proof of payment, 28 payment to the contractor may be withheld for up to 120 days 29 after completion of the project to allow any subcontractors 30 to enforce the provisions of the Mechanics Lien Act. 31 Each such bond is deemed to contain the following HB2724 Engrossed -2- LRB9102003MWpc 1 provisions whether such provisions are inserted in such bond 2 or not: 3 "The principal and sureties on this bond agree that all 4 the undertakings, covenants, terms, conditions and agreements 5 of the contract or contracts entered into between the 6 principal and the State or any political subdivision thereof 7 will be performed and fulfilled and to pay all persons, firms 8 and corporations having contracts with the principal or with 9 subcontractors, all just claims due them under the provisions 10 of such contracts for labor performed or materials furnished 11 in the performance of the contract on account of which this 12 bond is given, when such claims are not satisfied out of the 13 contract price of the contract on account of which this bond 14 is given, after final settlement between the officer, board, 15 commission or agent of the State or of any political 16 subdivision thereof and the principal has been made." 17 The bond required by this Section may be acquired from 18 the company, agent or broker of the contractor's choice. The 19 bond and sureties shall be subject to the right of reasonable 20 approval or disapproval, including suspension, by the State 21 or political subdivision thereof concerned. 22 When other than motor fuel tax funds, federal-aid funds, 23 or other funds received from the State are used, a political 24 subdivision may allow the contractor to provide a 25 non-diminishing irrevocable bank letter of credit, in lieu of 26 the bond required by this Section, on contracts under 27 $100,000 to comply with the requirements of this Section. 28 Any such bank letter of credit shall contain all provisions 29 required for bonds by this Section. 30 (Source: P.A. 89-518, eff. 1-1-97.) 31 Section 99. Effective date. This Act takes effect upon 32 becoming law.