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92_SB1882eng SB1882 Engrossed LRB9215844JMmb 1 AN ACT concerning public construction. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Public Construction Bond Act is amended 5 by changing Section 1 as follows: 6 (30 ILCS 550/1) (from Ch. 29, par. 15) 7 Sec. 1. Except as otherwise provided by this Act, all 8 officials, boards, commissions or agents of this State, or of 9 any political subdivision thereof in making contracts for 10 public work of any kind costing over $5,000 to be performed 11 for the State, or a political subdivision thereof shall 12 require every contractor for the work to furnish, supply and 13 deliver a bond to the State, or to the political subdivision 14 thereof entering into the contract, as the case may be, with 15 good and sufficient sureties. The amount of the bond shall be 16 fixed by the officials, boards, commissions, commissioners or 17 agents, and the bond, among other conditions, shall be 18 conditioned for the completion of the contract, for the 19 payment of material used in the work and for all labor 20 performed in the work, whether by subcontractor or otherwise. 21 If the contract is for emergency repairs as provided in 22 the Illinois Procurement Code, proof of payment for all 23 labor, materials, apparatus, fixtures, and machinery may be 24 furnished in lieu of the bond required by this Section. 25 Each such bond is deemed to contain the following 26 provisions whether such provisions are inserted in such bond 27 or not: 28 "The principal and sureties on this bond agree that all 29 the undertakings, covenants, terms, conditions and agreements 30 of the contract or contracts entered into between the 31 principal and the State or any political subdivision thereof SB1882 Engrossed -2- LRB9215844JMmb 1 will be performed and fulfilled and to pay all persons, firms 2 and corporations having contracts with the principal or with 3 subcontractors, all just claims due them under the provisions 4 of such contracts for labor performed or materials furnished 5 in the performance of the contract on account of which this 6 bond is given, when such claims are not satisfied out of the 7 contract price of the contract on account of which this bond 8 is given, after final settlement between the officer, board, 9 commission or agent of the State or of any political 10 subdivision thereof and the principal has been made." 11 The bond required by this Section may be acquired from 12 the company, agent or broker of the contractor's choice. 13 Except in a political subdivision of this State with a 14 population over 1,000,000, the form of the bond may be, at 15 the contractor's choosing, a cash bond, letter of credit, or 16 surety bond. The bond and sureties shall be subject to the 17 right of reasonable approval or disapproval, including 18 suspension, by the State or political subdivision thereof 19 concerned. 20 When other than motor fuel tax funds, federal-aid funds, 21 or other funds received from the State are used, a political 22 subdivision may allow the contractor to provide a 23 non-diminishing irrevocable bank letter of credit, in lieu of 24 the bond required by this Section, on contracts under 25 $100,000 to comply with the requirements of this Section. 26 Any such bank letter of credit shall contain all provisions 27 required for bonds by this Section. 28 (Source: P.A. 91-456, eff. 8-6-99.)