Retainage Limits Under Proposed Amendments to the Illinois Contractor Prompt Payment Act
The Illinois Senate is considering a bill to amend the Illinois Contractor Prompt Payment Act (the "Act") affecting when and how (1) owners pay prime contractors and (2) prime contractors pay their subcontractors.
If enacted, this bill (HB 0344) will:
This bill has already passed in the Illinois House. The Senate Assignments Committee is now considering this bill.
If enacted into law, this bill will limit how much retainage owners and prime contractors may hold and when they may withhold it. This bill will also affect (1) construction lenders' relationships with their borrowers and (2) sureties' relationships with the contractors and subcontractors they bond.
If you would like to comment on this bill:
If enacted, this bill (HB 0344) will:
- Limit retainage on private construction projects to a maximum of 5 percent of payments to prime contractors and subcontractors.
- Limit retainage after 50 percent completion to a maximum of 2.5 percent.
This bill has already passed in the Illinois House. The Senate Assignments Committee is now considering this bill.
If enacted into law, this bill will limit how much retainage owners and prime contractors may hold and when they may withhold it. This bill will also affect (1) construction lenders' relationships with their borrowers and (2) sureties' relationships with the contractors and subcontractors they bond.
If you would like to comment on this bill:
- Contact your Illinois State Senator and the members of the Senate Assignments Committee; and
- Contact the government affairs staff of interested trade associations like these:
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