Illinois HB1224 establishes the State Agency Retainage Act, allowing state agencies to retain a percentage of payments to contractors if satisfactory.
Illinois HB1224, known as the State Agency Retainage Act, allows state agencies to withhold a portion of payments to contractors if they determine that satisfactory progress has not been made. The retainage cannot exceed 5% of the total contract amount until the contract reaches 50% completion, and it can be adjusted based on performance and other factors. The withheld funds must be paid promptly upon completion of all contract requirements. The Act also clarifies that retainage does not include funds withheld due to violations of laws.
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