IL HB5035

Amends the Public Construction Bond Act to require surety bonds from contractors on public works projects costing over $50,000, with sureties rated at least A- by major rating agencies.

Allows the Department of Transportation to implement a 5-year pilot program permitting contractors to provide non-diminishing irrevocable bank letters of credit instead of surety bonds on contracts under $500,000 classified as low-risk scope of work.

Establishes specific requirements for surety responses to contractor defaults within 15 working days, with sureties required to either complete the work through a completing contractor or pay reasonable costs to complete the work up to the bond's penal sum.

Clarifies that State construction contractors cannot be required to post cash bonds or letters of credit in addition to surety bonds, except as otherwise provided in the Section.

Expands the definition of "material," "labor," "apparatus," "fixtures," and "machinery" to include rented items and tools on the construction site used in performance of the contract.