State of Illinois
91st General Assembly
Legislation

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91_SB0812eng

 
SB812 Engrossed                                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        "Improve" means to build, alter, repair, or  demolish  an
17    improvement on, connected with, or beneath the surface of any
18    real  property; to excavate, clear, grade, fill, or landscape
19    any real property; to construct driveways or roadways; or  to
20    perform labor on improvements.
21        "Improvement" includes, but is not limited to, all or any
22    part   of  any  building,  structure,  erection,  alteration,
23    demolition,   excavation,   clearing,    grading,    filling,
24    landscaping, trees, shrubbery, driveways, or roadways on real
25    property.
26        "Person"  means  an individual, corporation, partnership,
27    association, governmental entity, or any other legal entity.
28        "Real property" means the real estate that  is  improved,
29    including,  but not limited to, lands, leaseholds, tenements,
30    hereditaments, and improvements placed on the real estate.
 
SB812 Engrossed             -2-                LRB9105554MWgc
 1        Section  10.  Contract  requirements.   If   a   contract
 2    between  a  contractor  and  a  governmental  entity  for  an
 3    improvement  exceeds $75,000, all of the following provisions
 4    apply to that contract:
 5        (1)  If  a  contractor  discovers  one  or  both  of  the
 6    following physical conditions at the surface or subsurface of
 7    the site, the contractor must notify the governmental  entity
 8    of the condition, in writing, before disturbing the site:
 9             (A)  A  subsurface  or  latent physical condition at
10        the site differing materially from  conditions  indicated
11        in the contract.
12             (B)  An unknown physical condition at the site of an
13        unusual  nature  differing materially form the conditions
14        ordinarily  encountered  and  generally   recognized   as
15        inhering  in  work  of  the  kind  provided  for  in  the
16        contract.
17        (2)  If  the governmental entity receives notice from the
18    contractor under subdivision  (1),  the  governmental  entity
19    must promptly investigate the physical condition.
20        (3)  If  the  governmental  entity  determines  that  the
21    physical  condition  (i)  does  materially  differ  from  the
22    conditions   indicated   in   the   contract   or  ordinarily
23    encountered in the work of  the  kind  provided  for  in  the
24    contract  and  (ii) will cause an increase or decrease in the
25    costs  or  time  needed  to   perform   the   contract,   the
26    governmental  entity must make an equitable adjustment to and
27    modify the contract in writing.
28        (4)  The contractor may not make a claim  for  additional
29    costs  or  time  because of a physical condition at the site,
30    unless the contractor has provided notice to the governmental
31    entity under subdivision (1).
32        (5)  The  contractor  may  not  make  a  claim   for   an
33    adjustment  after the contractor has received a final payment
34    under the contract.
 
SB812 Engrossed             -3-                LRB9105554MWgc
 1        Section 15.  Arbitration.  A contractor and  governmental
 2    entity  may,  by mutual agreement, arbitrate the contractor's
 3    entitlement to recover the actual increase in  contract  time
 4    or  costs  incurred  because  of  a physical condition at the
 5    site.  The judgment rendered may  be  entered  in  any  court
 6    having jurisdiction over the matter.

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

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

15        Section 99.  Effective date.  This Act takes effect  upon
16    becoming law.

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