South Cook News

William "Will" Davis introduced HB1224 in the Illinois House on Jan. 9, 2025, during the general assembly session 104, according to the Illinois General Assembly.

According to the Illinois General Assembly site, the legislature summarized the bill's official text as follows: "Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the amount of any and all draw amounts submitted and approved under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract of the amount of any and all draw amounts submitted and approved under the terms of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act."

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill, known as the State Agency Retainage Act, establishes guidelines for when and how state agencies in Illinois can withhold retainage, or a portion of contract payments, to ensure satisfactory progress on construction projects. Retainage can only be withheld when a contractor or subcontractor fails to make satisfactory progress, as determined by the agency based on past performance and future expectations. The retainage amount cannot exceed 10% of approved draw amounts until the contract is 50% completed and 5% thereafter. It also stipulates that retainage cannot be withheld excessively or without cause. The act prohibits contractors from withholding retainage from subcontractors unless it correlates with the state agency's actions. Payments are to be made promptly upon contract completion, and the act takes effect July 1, 2026.

Davis graduated from Southern Illinois University in 1989 with a BA.

William "Will" Davis is currently serving in the Illinois State House, representing the state's 30th House District. He replaced previous state representative Harold Murphy in 2003.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Bill Number	Date Introduced	Short Description
HB1224	01/09/2025	Creates the State Agency Retainage Act. Provides that, if a State agency determines that satisfactory progress has not been achieved by a contractor or subcontractor during any period for which a payment is to be made, a percentage of the payment may be retained by the State agency. Prohibits the amount of retainage under the Act from exceeding 10% of the amount of any and all draw amounts submitted and approved under the terms of the contract until the contract is 50% completed. Prohibits retainage of more than 5% of the contract of the amount of any and all draw amounts submitted and approved under the terms of the contract for the duration of the contract. Authorizes retainage to be adjusted as the contract approaches completion to recognize better than expected performance, the ability to rely on alternative safeguards, and other factors. Further provides that on completion of all contract requirements, amounts retained under the Act must be paid promptly. Defines the terms "retainage" and "State agency". Amends the State Prompt Payment Act. Specifies that the State Prompt Payment Act does not apply to retainage withheld under the State Agency Retainage Act.