State of Illinois
91st General Assembly
Legislation

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91_HB2724enr

 
HB2724 Enrolled                                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 the such work to furnish, supply
14    and  deliver  a  bond  to  the  State,  or  to  the political
15    subdivision thereof entering into the such contract,  as  the
16    case may be, with good and sufficient sureties. The amount of
17    the  such  bond shall be fixed by the such officials, boards,
18    commissions, commissioners or  agents,  and  the  such  bond,
19    among   other   conditions,  shall  be  conditioned  for  the
20    completion of the contract, for the payment of material  used
21    in  the  such  work  and  for all labor performed in the such
22    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.
27        Each  such  bond  is  deemed  to  contain  the  following
28    provisions  whether such provisions are inserted in such bond
29    or not:
30        "The principal and sureties on this bond agree  that  all
31    the undertakings, covenants, terms, conditions and agreements
 
HB2724 Enrolled            -2-                 LRB9102003MWpc
 1    of  the  contract  or  contracts  entered  into  between  the
 2    principal  and the State or any political subdivision thereof
 3    will be performed and fulfilled and to pay all persons, firms
 4    and corporations having contracts with the principal or  with
 5    subcontractors, all just claims due them under the provisions
 6    of  such contracts for labor performed or materials furnished
 7    in the performance of the contract on account of  which  this
 8    bond  is given, when such claims are not satisfied out of the
 9    contract price of the contract on account of which this  bond
10    is  given, after final settlement between the officer, board,
11    commission  or  agent  of  the  State  or  of  any  political
12    subdivision thereof and the principal has been made."
13        The bond required by this Section may  be  acquired  from
14    the company, agent or broker of the contractor's choice.  The
15    bond and sureties shall be subject to the right of reasonable
16    approval  or  disapproval, including suspension, by the State
17    or political subdivision thereof concerned.
18        When other than motor fuel tax funds, federal-aid  funds,
19    or  other funds received from the State are used, a political
20    subdivision  may  allow   the   contractor   to   provide   a
21    non-diminishing irrevocable bank letter of credit, in lieu of
22    the  bond  required  by  this  Section,  on  contracts  under
23    $100,000  to  comply  with  the requirements of this Section.
24    Any such bank letter of credit shall contain  all  provisions
25    required for bonds by this Section.
26    (Source: P.A. 89-518, eff. 1-1-97.)

27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.

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