State of Illinois
91st General Assembly
Legislation

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91_SB0812enr

 
SB812 Enrolled                                 LRB9105554MWgc

 1        AN ACT in relation to public construction contracts.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 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    "Governmental entity" does not include the Metropolitan Water
17    Reclamation District.
18        "Improve"  means  to build, alter, repair, or demolish an
19    improvement on, connected with, or beneath the surface of any
20    real property; to excavate, clear, grade, fill, or  landscape
21    any  real property; to construct driveways or roadways; or to
22    perform labor on improvements.
23        "Improvement" includes, but is not limited to, all or any
24    part  of  any  building,  structure,  erection,   alteration,
25    demolition,    excavation,    clearing,   grading,   filling,
26    landscaping, trees, shrubbery, driveways, or roadways on real
27    property.
28        "Person" means an individual,  corporation,  partnership,
29    association, governmental entity, or any other legal entity.
30        "Real  property"  means the real estate that is improved,
31    including, but not limited to, lands, leaseholds,  tenements,
 
SB812 Enrolled             -2-                 LRB9105554MWgc
 1    hereditaments, and improvements placed on the real estate.

 2        Section   10.  Contract   requirements.   If  a  contract
 3    between  a  contractor  and  a  governmental  entity  for  an
 4    improvement exceeds $75,000, all of the following  provisions
 5    apply to that contract:
 6        (1)  If  a  contractor  discovers  one  or  both  of  the
 7    following physical conditions at the surface or subsurface of
 8    the  site, the contractor must notify the governmental entity
 9    of  the  condition,  in  writing,   before   disturbing   the
10    condition:
11             (A)  A  subsurface  or  latent physical condition at
12        the site differing materially from  conditions  indicated
13        in the contract.
14             (B)  An unknown physical condition at the site of an
15        unusual  nature  differing materially from the conditions
16        ordinarily  encountered  and  generally   recognized   as
17        inhering  in  work  of  the  kind  provided  for  in  the
18        contract.
19        (2)  If  the governmental entity receives notice from the
20    contractor under subdivision  (1),  the  governmental  entity
21    must promptly investigate the physical condition.
22        (3)  If  the  governmental  entity  determines  that  the
23    physical  condition  (i)  does  materially  differ  from  the
24    conditions   indicated   in   the   contract   or  ordinarily
25    encountered in the work of  the  kind  provided  for  in  the
26    contract  and  (ii) will cause an increase or decrease in the
27    costs  or  time  needed  to   perform   the   contract,   the
28    governmental  entity must make an equitable adjustment to and
29    modify the contract in writing.
30        (4)  The contractor may not make a claim  for  additional
31    costs  or  time  because of a physical condition at the site,
32    unless the contractor has provided notice to the governmental
33    entity under subdivision (1).
 
SB812 Enrolled             -3-                 LRB9105554MWgc
 1        (5)  The  contractor  may  not  make  a  claim   for   an
 2    adjustment  after the contractor has received a final payment
 3    under the contract.

 4        Section 15.  Arbitration.  A contractor and  governmental
 5    entity  may,  by mutual agreement, arbitrate the contractor's
 6    entitlement to recover the actual increase in  contract  time
 7    or  costs  incurred  because  of  a physical condition at the
 8    site.  The judgment rendered may  be  entered  in  any  court
 9    having jurisdiction over the matter.

10        Section 20.  Incorporation into contract.  The provisions
11    of   Section  10  of  this  Act  are  incorporated  into  and
12    considered a part of every contract for improvements  between
13    a contractor and governmental entity.

14        Section  25.  Limitation.  Nothing in this Act limits the
15    rights or remedies otherwise available  to  a  contractor  or
16    governmental   entity  under  any  other  law  or  under  the
17    Constitution of the State of Illinois.

18        Section 99.  Effective date.  This Act takes effect  upon
19    becoming law.

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