Bill > HB3631

This bill amends the Capital Development Board Act to establish a mechanism for direct payment to subcontractors on state-funded construction projects when prime contractors fail to pay them in a timely manner. The legislation recognizes that subcontractors are crucial to public construction projects and that payment delays can negatively impact their financial stability. Under the new provisions, the Capital Development Board may pay subcontractors directly if they submit verified documentation of completed work, the prime contractor has not paid within 30 days of receiving payment from the Board, and the subcontractor has provided written notice of non-payment. The bill requires the Board to notify the prime contractor and allow a 10-day period to dispute the claim. If no valid dispute is raised, the Board will pay the subcontractor, with the amount deducted from future payments to the prime contractor. Additionally, prime contractors who consistently fail to pay subcontractors may face penalties, including payment withholdings, potential suspension from bidding on future state contracts for up to three years, and the requirement to follow rules established by the Board for claim submission and dispute resolution.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3631&GAID=18&DocTypeID=HB&SessionID=114&GA=104