SPRINGFIELD- Small businesses may soon have better opportunities at acquiring and maintaining contracts with the Illinois Department of Transportation, thanks to a proposal the legislators approved Thursday.
House Bill 4477, which passed the Senate 56-0, requires contracts using the services of a subcontractor to include terms for making advanced payments to the subcontractor for preliminary spending purposes, such as purchasing tools and machinery for a project.
“The goal is to promote small business participation in state contracts,” State Senator Napoleon Harris (D-Harvey) said. “Subcontractors are often in a position where they’re waiting far too long for a payment. That’s unacceptable.”
Small contracting firms struggle to take on subcontracts due to payment delays from prime contractors. Mobilization payments to a subcontractor would be based on the total value of the subcontract on a tiered scale.
The legislation was approved in both chambers and will head to the governor.
Share on Facebook
Share on Twitter
Illinois Legislative Black Caucus Foundation to award scholarships at Scholarship Reception
June 30, 2017
ILBCF Announces 2017 Legislative Research Fellows
January 27, 2017
Illinois Legislative Black Caucus hoping to crackdown on violence, looting