State of Illinois
90th General Assembly

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[ Introduced ][ House Amendment 001 ]


      625 ILCS 5/3-617          from Ch. 95 1/2, par. 3-617
          Amends the Illinois Vehicle  Code  to  make  a  technical
HB1059 Engrossed                               LRB9003739DPcc
 1        AN  ACT  to  amend  the Illinois Highway Code by changing
 2    Section 4-103.
 3        WHEREAS, Project Labor Agreements  promote  labor  peace,
 4    stability,  and uninterrupted performance in the construction
 5    of public works; therefore
 6        Be it enacted by the People of  the  State  of  Illinois,
 7    represented in the General Assembly:
 8        Section  5.  The  Illinois  Highway  Code  is  amended by
 9    changing Section 4-103 as follows:
10        (605 ILCS 5/4-103) (from Ch. 121, par. 4-103)
11        Sec. 4-103.  Any contracts that may be entered  into  for
12    the  construction  of  highways shall be let after due public
13    advertisement to the lowest responsible bidder,  or  bidders,
14    upon  terms and conditions to be fixed by the Department, and
15    the Department shall also require the successful  bidder,  or
16    bidders,  to  furnish  good  and  sufficient  bonds to insure
17    proper and prompt completion of such work in accordance  with
18    the  provisions of such contracts, provided that neither this
19    Section nor  any  other  provision  of  this  Code  shall  be
20    construed  to  prohibit  a  contract  for the construction of
21    highways  let  by  the  Department,   or   subject   to   the
22    Department's  supervision  and  approval,  from requiring the
23    contractor who is the successful bidder on the  contract  and
24    its  subcontractors,  as  a condition for performing the work
25    under the contract, to enter into or  agree  to  observe  the
26    terms of a project labor agreement establishing the terms and
27    conditions  of  employment  for  the  laborers, mechanics, or
28    workers performing  the  work  with  the  labor  organization
29    having jurisdiction over the type of work performed.
30        Partial   payments  may  be  made  for  the  work  as  it
31    progresses provided that the Department retains an amount  as
HB1059 Engrossed            -2-                LRB9003739DPcc
 1    required  by  the Standard Specifications for Road and Bridge
 2    construction.
 3        At the request of the contractor and with the approval of
 4    the Department the retainage of the contract may be deposited
 5    under  a  trust  agreement   with   an   Illinois   financial
 6    institution,  whose  deposits  are  insured  by  an agency or
 7    instrumentality   of   the   federal   government,   of   the
 8    contractor's choice  and  subject  to  the  approval  of  the
 9    Department.
10        The contractor shall receive any interest thereon.
11        Pursuant  to  application  by  the  contractor,  a  trust
12    agreement  by  the  financial  institution and the Department
13    shall contain as a minimum, the following provisions:
14        a.  The amount to be deposited subject to the trust;
15        b.  The terms  and  conditions  of  payment  in  case  of
16    default of the contractor;
17        c.  The   termination   of   the   trust  agreement  upon
18    completion of the contract.
19        The contractor shall be  responsible  for  obtaining  the
20    written consent of the financial institution trustee, and any
21    costs or service fees shall be borne by the contractor.
22        The  trust  agreement  may,  at  the  discretion  of  the
23    Department   and  upon  request  of  the  contractor,  become
24    operative at  the  time  of  the  first  partial  payment  in
25    accordance with existing statutes and Department procedures.
26        The  provisions  of  this  Section  shall  apply  to  all
27    contracts  in  effect on and after the effective date of this
28    amendatory Act of 1981.
29    (Source: P.A. 84-1263.)

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