IL SB0074

Creates the State Agency Retainage Act, allowing state agencies to withhold a percentage of contractor payments when satisfactory progress has not been achieved on construction projects

Limits retainage to a maximum of 10% of the contract amount until the project is 50% complete, then caps retainage at 5% for the remainder of the contract

Requires retainage decisions to be made on a case-by-case basis, based on past performance assessment, and prohibits withholding funds without cause

Mandates prompt payment of all retained amounts upon completion of all contract requirements

Exempts retainage withheld under this new Act from the State Prompt Payment Act, which otherwise governs timely payments for goods and services furnished to the state