Illinois General Assembly - Full Text of SB1961
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Full Text of SB1961  93rd General Assembly

SB1961eng 93rd General Assembly


SB1961 Engrossed                     LRB093 08428 BDD 08650 b

 1        AN ACT concerning procurement.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The Illinois Procurement Code is amended by
 5    changing Section 30-25 as follows:

 6        (30 ILCS 500/30-25)
 7        Sec. 30-25.  Retention of a percentage of contract price.
 8    Whenever Any contract entered into by a  construction  agency
 9    for  the repair, remodeling, renovation, or construction of a
10    building or structure, for the construction or maintenance of
11    a highway, as those terms are defined in  Article  2  of  the
12    Illinois  Highway  Code,  or for the reclamation of abandoned
13    lands as  those  terms  are  defined  in  Article  I  of  the
14    Abandoned  Mined  Lands and Water Reclamation Act may provide
15    provides for the retention of a percentage not to  exceed  5%
16    of  the  contract price until final completion and acceptance
17    of the work., Upon the request of the contractor and with the
18    approval of the construction agency, the amount  so  retained
19    may  be  deposited  under  a trust agreement with an Illinois
20    bank or financial institution of the contractor's choice  and
21    subject  to  the  approval  of  the construction agency.  The
22    contractor  shall  receive  any  interest  on  the  deposited
23    amount.  Upon  application  by  the  contractor,  the   trust
24    agreement   must   contain,   at  a  minimum,  the  following
25    provisions:
26             (1)  the amount  to  be  deposited  subject  to  the
27        trust;
28             (2)  the  terms and conditions of payment in case of
29        default by the contractor;
30             (3)  the termination of  the  trust  agreement  upon
31        completion of the contract; and
SB1961 Engrossed            -2-      LRB093 08428 BDD 08650 b
 1             (4)  the   contractor   shall   be  responsible  for
 2        obtaining the written consent of the bank trustee and for
 3        any costs or service fees.
 4        The  trust  agreement  may,  at  the  discretion  of  the
 5    construction agency  and  upon  request  of  the  contractor,
 6    become  effective at the time of the first partial payment in
 7    accordance with existing statutes and rules.
 8    (Source: P.A. 90-572, eff. date - See Sec. 99-5.)