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91_SB0976
LRB9101061KSsb
1 AN ACT to amend the Illinois Highway Code by changing
2 Section 4-103.
3 WHEREAS, Project Labor Agreements promote labor peace,
4 stability, and uninterrupted performance in the construction
5 of public works; therefore
6 Be it enacted by the People of the State of Illinois,
7 represented in the General Assembly:
8 Section 5. The Illinois Highway Code is amended by
9 changing Section 4-103 as follows:
10 (605 ILCS 5/4-103) (from Ch. 121, par. 4-103)
11 Sec. 4-103. Any contracts that may be entered into for
12 the construction of highways shall be let after due public
13 advertisement to the lowest responsible bidder, or bidders,
14 upon terms and conditions to be fixed by the Department, and
15 the Department shall also require the successful bidder, or
16 bidders, to furnish good and sufficient bonds to insure
17 proper and prompt completion of such work in accordance with
18 the provisions of such contracts, provided that neither this
19 Section nor any other provision of this Code shall be
20 construed to prohibit a contract for the construction of
21 highways let by the Department, or subject to the
22 Department's supervision and approval, from requiring the
23 contractor who is the successful bidder on the contract and
24 its subcontractors, as a condition for performing the work
25 under the contract, to enter into or agree to observe the
26 terms of a project labor agreement establishing the terms and
27 conditions of employment for the laborers, mechanics, or
28 workers performing the work with the labor organization
29 having jurisdiction over the type of work performed.
30 Partial payments may be made for the work as it
31 progresses provided that the Department retains an amount as
-2- LRB9101061KSsb
1 required by the Standard Specifications for Road and Bridge
2 construction.
3 At the request of the contractor and with the approval of
4 the Department the retainage of the contract may be deposited
5 under a trust agreement with an Illinois financial
6 institution, whose deposits are insured by an agency or
7 instrumentality of the federal government, of the
8 contractor's choice and subject to the approval of the
9 Department.
10 The contractor shall receive any interest thereon.
11 Pursuant to application by the contractor, a trust
12 agreement by the financial institution and the Department
13 shall contain as a minimum, the following provisions:
14 a. The amount to be deposited subject to the trust;
15 b. The terms and conditions of payment in case of
16 default of the contractor;
17 c. The termination of the trust agreement upon
18 completion of the contract.
19 The contractor shall be responsible for obtaining the
20 written consent of the financial institution trustee, and any
21 costs or service fees shall be borne by the contractor.
22 The trust agreement may, at the discretion of the
23 Department and upon request of the contractor, become
24 operative at the time of the first partial payment in
25 accordance with existing statutes and Department procedures.
26 The provisions of this Section shall apply to all
27 contracts in effect on and after the effective date of this
28 amendatory Act of 1981.
29 (Source: P.A. 84-1263.)