All Roll Calls
Yes: 429 • No: 133
IllinoisHB1224104th General Assembly (2025–2026)HouseWALLET
GOVT CONTRACT RETAINAGE
Sponsored By: William "Will" Davis (Democratic)
Became Law
state government administrationassignmentsexecutive
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
More public contracts must be bonded
Starting June 1, 2027, most State and local public works over $150,000 must have a surety bond. In that same period, Transportation and the Toll Highway Authority require bonds only on contracts over $500,000. On and after January 1, 2029, every public works contract over $50,000 must be bonded. Bonds must be from an Illinois‑licensed insurer rated A or higher and must cover completion and payment to workers and suppliers.
Lower retainage and clearer progress rules
Starting June 1, 2027, retainage is capped at 10% before 50% completion and 5% after that. Agencies may hold retainage only when progress is not satisfactory, as defined in the contract, and this applies to contracts signed on or after June 1, 2027. Contractors can withhold from a subcontractor only up to the amount the agency held for that subcontractor. These limits apply to bonded work. The 10%/5% cap does not apply to the Transportation Department, and the attribution rule does not apply to the Toll Highway Authority.
Letters of credit and emergency bond relief
Starting June 1, 2027, local governments may accept a non‑diminishing bank letter of credit instead of a bond on contracts under $100,000 when no State, federal‑aid, or motor fuel tax funds are used. Any letter of credit must include the same protections as a bond. The Transportation Department may run a five‑year pilot letting low‑risk projects under $500,000 use a bank letter of credit. For emergency repairs under the Procurement Code, contractors may show proof of payment instead of a bond. Also, State construction contractors cannot be forced to post extra cash bonds or letters of credit on top of the required surety bond, unless an allowed exception applies.
More transparency and payment protection for subs
Starting June 1, 2027, Transportation and the Toll Highway Authority must publish key contract facts. They show defaults, award and adjusted values, unpaid amounts, bidder lists and bid amounts, surety names, payment claim totals, and each contractor’s annual State‑contract revenue for each project. Also, every required bond is deemed to cover payment to subcontractors and suppliers when valid claims are not paid from the contract price after final settlement.
Sponsors & Cosponsors
Sponsor
William "Will" Davis
Democratic • House
Cosponsors
Dagmara Avelar
Democratic • House
Diane Blair-Sherlock
Democratic • House
Harry Benton
Democratic • House
La Shawn K. Ford
Democratic • House
Lakesia Collins
Democratic • Senate
Laura M. Murphy
Democratic • Senate
Matt Hanson
Democratic • House
Mattie Hunter
Democratic • Senate
Napoleon Harris, III
Democratic • Senate
Nicholas K. Smith
Democratic • House
Rita Mayfield
Democratic • House
Willie Preston
Democratic • Senate
Roll Call Votes
House vote • 6/1/2025
Senate Floor Amendment No. 3 House Concurs
Yes: 86 • No: 28
House vote • 6/1/2025
Senate Committee Amendment No. 1 House Concurs
Yes: 86 • No: 28
House vote • 5/31/2025
Senate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee;
Yes: 5 • No: 0
House vote • 5/31/2025
Motion Prevailed to Suspend Rule
Yes: 73 • No: 39
Senate vote • 5/31/2025
Third Reading - Passed;
Yes: 56 • No: 0
House vote • 5/31/2025
Senate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee;
Yes: 5 • No: 0
Senate vote • 5/30/2025
Senate Floor Amendment No. 3 Recommend Do Adopt Executive;
Yes: 12 • No: 0
Senate vote • 5/28/2025
Do Pass as Amended Executive;
Yes: 13 • No: 0
House vote • 4/9/2025
Third Reading - Short Debate - Passed
Yes: 79 • No: 35
House vote • 4/7/2025
House Floor Amendment No. 3 Recommends Be Adopted State Government Administration Committee;
Yes: 5 • No: 3
House vote • 2/19/2025
Do Pass / Short Debate State Government Administration Committee;
Yes: 9 • No: 0
Actions Timeline
Public Act . . . . . . . . . 104-0168
8/15/2025HouseEffective Date June 1, 2027
8/15/2025HouseGovernor Approved
8/15/2025HouseSent to the Governor
6/24/2025HouseAdded as Alternate Co-Sponsor Sen. Laura M. Murphy
6/1/2025SenatePassed Both Houses
6/1/2025HouseHouse Concurs
6/1/2025HouseSenate Floor Amendment No. 3 House Concurs 086-028-000
6/1/2025HouseSenate Committee Amendment No. 1 House Concurs 086-028-000
6/1/2025HouseMotion Prevailed to Suspend Rule 073-039-000
5/31/2025HouseMotion Filed to Suspend House Rule(s) for Immediate Consideration Rep. Bob Morgan
5/31/2025HouseSenate Floor Amendment No. 3 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000
5/31/2025HouseSenate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee; 005-000-000
5/31/2025HouseSenate Floor Amendment No. 3 Motion to Concur Referred to Rules Committee
5/31/2025HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
5/31/2025HouseSenate Floor Amendment No. 3 Motion Filed Concur Rep. William "Will" Davis
5/31/2025HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. William "Will" Davis
5/31/2025HouseAdded as Alternate Co-Sponsor Sen. Napoleon Harris, III
5/31/2025SenatePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 3
5/31/2025HouseArrived in House
5/31/2025HouseAlternate Chief Co-Sponsor Changed to Sen. Mattie Hunter
5/31/2025SenateAlternate Chief Co-Sponsor Changed to Sen. Lakesia Collins
5/31/2025SenateAdded as Alternate Chief Co-Sponsor Sen. Lakesia Collins
5/31/2025SenateAdded as Alternate Chief Co-Sponsor Sen. Mattie Hunter
5/31/2025SenateSenate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a)
5/31/2025Senate
Bill Text
Engrossed
Enrolled
House Amendment 1
House Amendment 2
House Amendment 3
Introduced
Senate Amendment 1
Senate Amendment 2
Senate Amendment 3