IL HB4418

Creates the Government Contract Retainage Act to regulate how governmental units (state agencies and local government units) handle money withheld from construction contracts.

Defines "retainage" as a portion of contract payment withheld for a specified period to ensure contractors complete projects as specified.

Requires interest to accrue monthly on retainage withheld by governmental units at the rate set by the State Treasurer for the Local Government Investment Pool Fund Daily Rates.

Mandates retainage be paid within 60 days of being withheld (including accrued interest), except retainage from the final pay period must be paid within 120 days.