Latest modifications to Illinois regulation will impression the way in which faculty districts administer their summer time building tasks. The Public Development Bond Act has been amended efficient January 1, 2024, to extend the edge at which efficiency and cost bonds are required. The Act has additionally been amended to restrict the quantity of retainage that may be withheld on public works tasks. A separate change to the Felony Code that took impact final yr elevated the edge at which change orders have to be authorized by a public physique or its designee.
The Public Development Bond Act (30 ILCS 550) requires faculty districts and different public our bodies to acquire efficiency and cost bonds for building tasks over a specified greenback quantity. Beforehand, the edge was any public works challenge over $50,000. As of January 1, P.A. 103-0570 elevated this threshold to tasks exceeding $150,000. Public our bodies could require efficiency and cost bonds for tasks beneath the $150,000 threshold, offered they accomplish that by decision or ordinance. This provision is ready to run out on January 1, 2029, at which era the edge will revert to tasks exceeding $50,000.
A brand new provision has additionally been inserted into the Public Development Bond Act concerning the retainage on public building tasks over $150,000. Previous to 50% completion of a challenge, the retainage withheld by a public physique on any cost could not exceed 10%. Upon 50% completion, the retainage have to be lowered to five%, and not more than 5% of any future cost could also be withheld. This identical requirement applies to contractor funds to subcontractors.
Lastly, the edge for acquiring approval for change orders was elevated efficient final yr. P.A. 102-1119 amended the Illinois Felony Code (720 ILCS 5). Article 33E of the Felony Code offers with public contracts. Part 9 makes it a category 4 felony for any particular person employed by a public physique and approved to approve change orders to knowingly grant a change order with out first acquiring a written dedication from the general public physique or its designee that the circumstances giving rise to the necessity for the change order weren’t fairly foreseeable on the time the contract was signed, or that the change is germane to the unique contract, or that the change order is in the most effective curiosity of the general public physique. Beforehand, this requirement utilized to any change order or sequence of change orders that elevated or decreased the price of a public contract by greater than $10,000 or that altered the time of completion by greater than 30 days. Now, the edge for acquiring approval is a change order or sequence of change orders rising or lowering the fee by greater than $25,000 or altering the time of completion by greater than 180 days.
