IMSCA Identifies 127 Bills that may Impact the Illinois Construction Industry

IMSCA has reviewed nearly 6,000 bills that were introduced this year and identified 127 bills that may impact the Illinois construction industry. Most notably — and the top legislative priority this year — is SB 1636, sponsored by Sen. John Mulroe and HB 2916, sponsored by Rep. Luis Arroyo.

The withholding of retainage creates an imbalance of power between owners/developers and contractors. SB 1636/HB 2916 seeks to correct this imbalance and create a more level playing field between all parties in a construction contract. Our legislation amends the Contractor Prompt Payment Act and allows retainage to be withheld at a rate of 10% for the first half of a construction project, but must reduce that to 5% once the project is 50% completed. Some contractors wait for more than a year after completing work until payment is finally received. This bill will only apply to private, commercial and construction projects.

IMSCA staff needs your help! Support and vote yes on SB 1636/HB 2916. Reach out to your legislators by letter or phone call, meet with them in their district offices, or attend an event. Explain to them the importance of adopting retainage reform and how your personal experiences have hurt you and/or your business’s bottom line. Reach out to your union business agents or other trade and professional organizations and ask them to support our efforts.

Passage of this legislation will ease contractors’ cash flow burdens, free up capital, and permit contractors — especially smaller subcontractors — to perform more work, rather than wait for payment. Illinois needs to adopt SB 1636/HB 2916 to help create new development in Illinois.

IMSCA staff looks forward to representing the Illinois subcontracting industry in Springfield this session. We are confident that by working alongside our members, IMSCA will have another legislatively successful year.