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
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.