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Public Act 91-0647
SB812 Enrolled LRB9105554MWgc
AN ACT in relation to public construction contracts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Public Construction Contract Act.
Section 5. Definitions. As used in this Act:
"Contractor" means a person who contracts with a
governmental entity to improve real property or to perform or
manage construction. "Contractor" does not mean a person
licensed under the Illinois Architecture Practice Act of
1989, the Illinois Professional Land Surveyor Act of 1989, or
the Professional Engineering Practice Act of 1989.
"Governmental entity" means a county, a municipality, a
township, a public educational institution, a special
district, or any political subdivision thereof.
"Governmental entity" does not include the Metropolitan Water
Reclamation District.
"Improve" means to build, alter, repair, or demolish an
improvement on, connected with, or beneath the surface of any
real property; to excavate, clear, grade, fill, or landscape
any real property; to construct driveways or roadways; or to
perform labor on improvements.
"Improvement" includes, but is not limited to, all or any
part of any building, structure, erection, alteration,
demolition, excavation, clearing, grading, filling,
landscaping, trees, shrubbery, driveways, or roadways on real
property.
"Person" means an individual, corporation, partnership,
association, governmental entity, or any other legal entity.
"Real property" means the real estate that is improved,
including, but not limited to, lands, leaseholds, tenements,
hereditaments, and improvements placed on the real estate.
Section 10. Contract requirements. If a contract
between a contractor and a governmental entity for an
improvement exceeds $75,000, all of the following provisions
apply to that contract:
(1) If a contractor discovers one or both of the
following physical conditions at the surface or subsurface of
the site, the contractor must notify the governmental entity
of the condition, in writing, before disturbing the
condition:
(A) A subsurface or latent physical condition at
the site differing materially from conditions indicated
in the contract.
(B) An unknown physical condition at the site of an
unusual nature differing materially from the conditions
ordinarily encountered and generally recognized as
inhering in work of the kind provided for in the
contract.
(2) If the governmental entity receives notice from the
contractor under subdivision (1), the governmental entity
must promptly investigate the physical condition.
(3) If the governmental entity determines that the
physical condition (i) does materially differ from the
conditions indicated in the contract or ordinarily
encountered in the work of the kind provided for in the
contract and (ii) will cause an increase or decrease in the
costs or time needed to perform the contract, the
governmental entity must make an equitable adjustment to and
modify the contract in writing.
(4) The contractor may not make a claim for additional
costs or time because of a physical condition at the site,
unless the contractor has provided notice to the governmental
entity under subdivision (1).
(5) The contractor may not make a claim for an
adjustment after the contractor has received a final payment
under the contract.
Section 15. Arbitration. A contractor and governmental
entity may, by mutual agreement, arbitrate the contractor's
entitlement to recover the actual increase in contract time
or costs incurred because of a physical condition at the
site. The judgment rendered may be entered in any court
having jurisdiction over the matter.
Section 20. Incorporation into contract. The provisions
of Section 10 of this Act are incorporated into and
considered a part of every contract for improvements between
a contractor and governmental entity.
Section 25. Limitation. Nothing in this Act limits the
rights or remedies otherwise available to a contractor or
governmental entity under any other law or under the
Constitution of the State of Illinois.
Section 99. Effective date. This Act takes effect upon
becoming law.
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