IL HB1404

Amends the Public Construction Bond Act to apply a uniform $50,000 threshold for both state and political subdivision public work contracts requiring contractor bonds, eliminating the previous separate $5,000 threshold for political subdivisions.

Requires contractors on bonds issued by the Capital Development Board or public higher education institution boards to respond within 15 working days to default notices and either complete the work through a jointly-selected contractor or pay up to the bond's penal sum for completion costs exceeding the contract balance.

Allows sureties up to 30 working days (unless otherwise agreed) to advise the State or political subdivision of their chosen course of action, with the State permitted to continue work at the surety's expense if completion contractor is not ready within 15 working days.

Permits political subdivisions using non-state or non-federal funds to accept non-diminishing irrevocable bank letters of credit in lieu of surety bonds for contracts under $100,000.

Prohibits the State from requiring cash bonds or letters of credit in addition to surety bonds on state construction contracts.