Construction One-Minute Read: Illinois Restricts Retainage On Private Construction Projects
Every private construction project in Illinois will be affected by a new law, effective immediately. The Contractor Prompt Payment Act (815 ILCS 603/1, et seq.) was amended to restrict the use of retainage on construction projects. Specifically, no construction contract may withhold more than 10 percent in retainage prior to 50 percent completion of the contract. When a construction contract is 50 percent complete, retainage must be reduced to no more than 5 percent […]