HB4658 Summary

• Allows owners to make payments directly to subcontractors on behalf of contractors under construction contracts.

• Grants owners an additional 25 days to obtain lender approval of payment applications if required by the owner's lending agreement before the payment is deemed approved.

• Clarifies that withholding up to 5% retainage, if permitted by contract, does not constitute approval of the payment application.

• Makes the Act subject to all rights and obligations under the Illinois Mechanics Lien Act.

• Applies to construction contracts entered after the effective date, excluding public works projects and single/multi-family residential properties with 12 or fewer units.