Full Text of HB0743 95th General Assembly
HB0743eng 95TH GENERAL ASSEMBLY
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HB0743 Engrossed |
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LRB095 06522 LCT 26624 b |
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| AN ACT concerning construction contracts.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Contractor Prompt Payment Act. | 6 |
| Section 5. Definitions. In this Act: | 7 |
| (a) "Billing" means, in accordance with the terms and | 8 |
| definitions of
the applicable contract, any invoice, bill or | 9 |
| other request for periodic payment, final payment, payment of | 10 |
| change order or request for release of retainage. | 11 |
| (b) "Construction contract" means a contract or | 12 |
| subcontract, entered into after the effective date of this Act, | 13 |
| for the design, construction, alteration, improvement, or | 14 |
| repair of Illinois real property, except for contracts that | 15 |
| require the expenditure of public funds and contracts for the | 16 |
| design, construction, alteration, improvement, or repair of | 17 |
| single family residences. | 18 |
| (c) "Contractor" and "subcontractor" shall have the | 19 |
| meanings ascribed to them by the Illinois Mechanics Lien Act | 20 |
| and cases decided under that Act. | 21 |
| Section 10. Construction contracts. All construction | 22 |
| contracts shall be deemed to provide the following unless they |
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HB0743 Engrossed |
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LRB095 06522 LCT 26624 b |
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| expressly exclude the provisions of this Act: | 2 |
| (1) If a contractor has performed in accordance with the | 3 |
| provisions of a construction contract and the billing has been | 4 |
| approved by the owner or the owner's agent, the owner shall pay | 5 |
| the amount due to the contractor pursuant to the billing not | 6 |
| more than 15 calendar days after the approval. The billing | 7 |
| shall be deemed approved 25 days after the owner receives it | 8 |
| unless the owner provides, before the end of the 25-day period, | 9 |
| a written statement of the amount withheld and the reason for | 10 |
| withholding payment. If the owner finds that a portion of the | 11 |
| work not in accordance with the contract, payment may be | 12 |
| withheld for the reasonable value of that portion only. Payment | 13 |
| shall be made for any portion of the contract for which the | 14 |
| work has been performed in accordance with the provisions of | 15 |
| the contract. | 16 |
| (2) If a subcontractor has performed in accordance with the | 17 |
| provisions of his or her contract with the contractor or | 18 |
| subcontractor and the work has been accepted by the owner, the | 19 |
| owner's agent, or the contractor, the contractor shall pay to | 20 |
| his or her subcontractor and the subcontractor shall pay to his | 21 |
| or her subcontractor, within 15 calendar days of the | 22 |
| contractor's receipt from the owner or the subcontractor's | 23 |
| receipt from the contractor of each periodic payment, final | 24 |
| payment, or receipt of retainage monies, the full amount | 25 |
| received for the work of the subcontractor based on the work | 26 |
| completed or the services rendered under the construction |
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HB0743 Engrossed |
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LRB095 06522 LCT 26624 b |
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| contract. | 2 |
| Section 15. Interest; suspension of performance. | 3 |
| (a) If a payment due pursuant to the provisions of this Act | 4 |
| is not made in a timely manner, the delinquent party shall be | 5 |
| liable for the amount of money owed under the construction | 6 |
| contract, plus interest at a rate equal to 10% per annum. | 7 |
| (b) A contractor or subcontractor who is not paid as | 8 |
| required by this Act may, after providing 7 calendar days' | 9 |
| written notice to the party failing to make the required | 10 |
| payment, suspend performance of a construction contract | 11 |
| without penalty for breach of contract, until the payment | 12 |
| required pursuant to this Act is made.
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| Section 99. Effective date. This Act shall take effect upon | 14 |
| becoming law.
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