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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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