IL HB3185

Amends the State Prompt Payment Act to extend subcontractor and material supplier payment protections currently applicable to Department of Transportation contracts to also cover Capital Development Board construction contracts

Contractors on Department of Transportation or Capital Development Board projects cannot offset, decrease, or diminish payments to subcontractors or material suppliers without reasonable cause

Contractors who refuse to make prompt payment within 10 business days or 15 calendar days must provide written notice identifying the contract, reason for refusal, value withheld, and remedial actions required

Contractors who fail to pay subcontractors without reasonable cause face 2% monthly interest penalties and potential debarment from state public construction contracts for one year or six months for repeat violations

Adds the Capital Development Board alongside the Department of Transportation in definitions of "reasonable cause" for withholding payment, including references to liquidated damages, penalties, and claims