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91_HB2724enr
HB2724 Enrolled LRB9102003MWpc
1 AN ACT to amend the Public Construction Bond Act by
2 changing Section 1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Construction Bond Act is amended
6 by changing Section 1 as follows:
7 (30 ILCS 550/1) (from Ch. 29, par. 15)
8 Sec. 1. Except as otherwise provided by this Act, all
9 officials, boards, commissions or agents of this State, or of
10 any political subdivision thereof in making contracts for
11 public work of any kind costing over $5,000 to be performed
12 for the State, or a political subdivision thereof shall
13 require every contractor for the such work to furnish, supply
14 and deliver a bond to the State, or to the political
15 subdivision thereof entering into the such contract, as the
16 case may be, with good and sufficient sureties. The amount of
17 the such bond shall be fixed by the such officials, boards,
18 commissions, commissioners or agents, and the such bond,
19 among other conditions, shall be conditioned for the
20 completion of the contract, for the payment of material used
21 in the such work and for all labor performed in the such
22 work, whether by subcontractor or otherwise.
23 If the contract is for emergency repairs as provided in
24 the Illinois Procurement Code, proof of payment for all
25 labor, materials, apparatus, fixtures, and machinery may be
26 furnished in lieu of the bond required by this Section.
27 Each such bond is deemed to contain the following
28 provisions whether such provisions are inserted in such bond
29 or not:
30 "The principal and sureties on this bond agree that all
31 the undertakings, covenants, terms, conditions and agreements
HB2724 Enrolled -2- LRB9102003MWpc
1 of the contract or contracts entered into between the
2 principal and the State or any political subdivision thereof
3 will be performed and fulfilled and to pay all persons, firms
4 and corporations having contracts with the principal or with
5 subcontractors, all just claims due them under the provisions
6 of such contracts for labor performed or materials furnished
7 in the performance of the contract on account of which this
8 bond is given, when such claims are not satisfied out of the
9 contract price of the contract on account of which this bond
10 is given, after final settlement between the officer, board,
11 commission or agent of the State or of any political
12 subdivision thereof and the principal has been made."
13 The bond required by this Section may be acquired from
14 the company, agent or broker of the contractor's choice. The
15 bond and sureties shall be subject to the right of reasonable
16 approval or disapproval, including suspension, by the State
17 or political subdivision thereof concerned.
18 When other than motor fuel tax funds, federal-aid funds,
19 or other funds received from the State are used, a political
20 subdivision may allow the contractor to provide a
21 non-diminishing irrevocable bank letter of credit, in lieu of
22 the bond required by this Section, on contracts under
23 $100,000 to comply with the requirements of this Section.
24 Any such bank letter of credit shall contain all provisions
25 required for bonds by this Section.
26 (Source: P.A. 89-518, eff. 1-1-97.)
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.
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