HB1224

GOVT CONTRACT RETAINAGE

Complete·8/15/25

Illinois HB1224 establishes the State Agency Retainage Act, allowing state agencies to withhold a percentage of payments from contractors if.

HB1224 creates the State Agency Retainage Act, which permits state agencies to retain a portion of payments from contractors or subcontractors if satisfactory progress is not made. The retainage amount cannot exceed 10% of the total draw amounts until the contract is 50% completed and may be adjusted based on performance and other factors. Upon contract completion, retained amounts must be promptly paid. The Act also amends the State Prompt Payment Act to exclude retainage withheld under this Act.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.

Sponsors

DDDDDDDDDDDDD
13
0
Democratic CaucusRepublican Caucus

Roll Call Votes

86 Yea

DDDDDDDDDDRRDDDDDDDDDDDDDDDRDDDDDDRDDDDDDDDDDDDDDDDDDDDDDDDDRDDDRDDRDDDDRDDDDDDDDRDDDD

28 Nay

RRRRRRRRRRRRRRRRRRRRRRRRRRRR

1 Not Voting

R

Calendar

May 30, 2025

6:30 PM

Executive Committee Hearing

May 28, 2025

2:00 PM

Executive Committee Hearing

History

Aug 15, 2025

House

Governor Approved

Aug 15, 2025

House

Effective Date June 1, 2027

Aug 15, 2025

House

Public Act . . . . . . . . . 104-0168