Blog Post
08/30/2019
By James Rohlfing

Effective August 20, 2019, Illinois law provides that a maximum of 10 percent retainage may be withheld from payments under private construction contracts and, after the contract is one-half complete, retainage must be reduced to 5 percent and kept at 5 percent for the remainder of the contract.  With this new law, Illinois joins the vast majority of states that have enacted laws pertaining to retainage on construction contracts.  Like almost every other state, Illinois’ retainage restrictions are unique to Illinois and, therefore, parties to Illinois construction c

Blog Post
04/23/2019
By James Rohlfing

A bill pending in the Illinois legislature (HB2838) exemplifies a nationwide trend in the construction industry to hold a contractor who has a direct contract with an owner (“Direct Contractor”) liable for the unpaid wage and fringe benefit obligations of its subcontractors on a private project.

Blog Post
01/02/2019
By James Rohlfing

Public Private Partnerships or, as they are commonly known, P3s or PPPs, are a method of involving private parties in some or all of the financing, design, construction and operation of traditionally public building or infrastructure projects.  Recently, P3s have become a more popular means of constructing or financing public projects.  They have received more attention because some states, such as Illinois, are short on public funds and long on the need to repair crumbling infrastructure and deliver necessary public buildings.  A P3 might entail a private entity participatin

Blog Post
07/13/2018
By James Rohlfing

Illinois is the most recent in a number of states to consider legislation that modifies the practice of withholding payments from contractors and subcontractors as retainage.  The practice of retainage has been regulated by the vast majority of states for public projects, private projects or both.  In its last session, the Illinois legislature passed SB 3052, which restricts retainage. Now it is up to Governor Bruce Rauner to decide if Illinois should join those states restricting retainage on construction projects.  

Blog Post
03/26/2018
By James Rohlfing

Illinois is considering joining the growing ranks of states that restrict retainage withheld on private or public construction projects.  Illinois Senate Bill 3052, invalidating contract clauses calling for retainage in excess of 5% for most privately funded construction projects, was passed by the Senate Judiciary Committee on March 13, 2018.  The bill will become law only if passed by the full Senate and House and signed by the Governor.  The retainage proposal presents an opportunity to examine the practice of retainage in the construction industry.