IL HB1227

Defines "retainage" or "retained funds" as money earned by contractors or subcontractors for satisfactory work but withheld until contract completion.

Requires retained funds to be placed in an escrow account with interest accruing to the contractor.

Mandates payment of retainage and accrued interest to the contractor upon final completion and acceptance of work.

Exempts telecommunications carriers as defined in Section 13-202 of the Public Utilities Act and their affiliates from the retainage escrow requirements.