Harris: Subcontractors should be paid on time

harris holman squareSPRINGFIELD- 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.

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