Full Text of HB0344 96th General Assembly
HB0344sam002 96TH GENERAL ASSEMBLY
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Sen. Carole Pankau
Filed: 5/15/2009
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| AMENDMENT TO HOUSE BILL 344
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| AMENDMENT NO. ______. Amend House Bill 344 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Contractor Prompt Payment Act is amended by | 5 |
| changing Sections 5 and 10 as follows: | 6 |
| (815 ILCS 603/5)
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| Sec. 5. Definitions. In this Act: | 8 |
| (a) "Payment application" means, in accordance with the | 9 |
| terms and definitions of
the applicable contract, any invoice, | 10 |
| bill or other request for periodic payment, final payment, | 11 |
| payment of change order or request for release of retainage | 12 |
| from the contractor to the owner. | 13 |
| (b) "Construction contract" means a contract or | 14 |
| subcontract, entered into after the effective date of this Act, | 15 |
| for the design, construction, alteration, improvement, or | 16 |
| repair of Illinois real property, except for contracts that |
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| require the expenditure of public funds and contracts for the | 2 |
| design, construction, alteration, improvement, or repair of | 3 |
| single family residences or multiple family residences with 12 | 4 |
| or fewer units in a single building. | 5 |
| (c) "Contractor" and "subcontractor" shall have the | 6 |
| meanings ascribed to them by the Illinois Mechanics Lien Act | 7 |
| and cases decided under that Act.
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| (d) "Retainage" means funds that are earned by the | 9 |
| contractor but not paid until some agreed upon date, such as | 10 |
| the completion of the job. | 11 |
| (Source: P.A. 95-567, eff. 8-31-07.) | 12 |
| (815 ILCS 603/10)
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| Sec. 10. Construction contracts. | 14 |
| (a) All construction contracts shall be deemed to provide | 15 |
| the following: | 16 |
| (1) If a contractor has performed in accordance with | 17 |
| the provisions of a construction contract and the payment | 18 |
| application has been approved by the owner or the owner's | 19 |
| agent, the owner shall pay the amount due to the contractor | 20 |
| pursuant to the payment application not more than 15 | 21 |
| calendar days after the approval. The payment application | 22 |
| shall be deemed approved 25 days after the owner receives | 23 |
| it unless the owner provides, before the end of the 25-day | 24 |
| period, a written statement of the amount withheld and the | 25 |
| reason for withholding payment. If the owner finds that a |
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| portion of the work not in accordance with the contract, | 2 |
| payment may be withheld for the reasonable value of that | 3 |
| portion only. Payment shall be made for any portion of the | 4 |
| contract for which the work has been performed in | 5 |
| accordance with the provisions of the contract. | 6 |
| Instructions or notification from an owner to his or her | 7 |
| lender or architect to process or pay a payment application | 8 |
| does not constitute approval of the payment application | 9 |
| under this Act. | 10 |
| (2) If a subcontractor has performed in accordance with | 11 |
| the provisions of his or her contract with the contractor | 12 |
| or subcontractor and the work has been accepted by the | 13 |
| owner, the owner's agent, or the contractor, the contractor | 14 |
| shall pay to his or her subcontractor and the subcontractor | 15 |
| shall pay to his or her subcontractor, within 15 calendar | 16 |
| days of the contractor's receipt from the owner or the | 17 |
| subcontractor's receipt from the contractor of each | 18 |
| periodic payment, final payment, or receipt of retainage | 19 |
| monies, the full amount received for the work of the | 20 |
| subcontractor based on the work completed or the services | 21 |
| rendered under the construction contract.
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| (b) Under a construction contract, it is unlawful to | 23 |
| withhold retainage on materials required for completion of the | 24 |
| construction contract that are delivered to a job site and are | 25 |
| billed in accordance with the periodic payments in the | 26 |
| construction contract. |
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| (Source: P.A. 95-567, eff. 8-31-07.)
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.".
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