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A. Except as otherwise provided in subsection (B), a contract for the construction of any public improvement or other public work may include terms providing for retainage. Such terms may be included in such contracts when the chief procurement officer determines that their inclusion is in the best interest of the City, to reasonably ensure the contractor's proper and complete performance of the work covered by the contract and the contractor's complete compliance with the terms and conditions of the contract.
B. Terms providing for retainage shall not be included, unless the contract is funded by a source that requires retainage, when:
1. The contract is federally funded and is subject to regulation governing prompt payment to disadvantaged business enterprise participants in the contract;
2. Quantities and delivery are indefinite at the time of advertisement and the contract will be paid on a unit price basis; or
3. The contract provides for participation goals, as authorized by law, for minority-owned business enterprises or women-owned business enterprises, as these terms are defined in 2-92-670.
C. When terms providing for retainage are included in a contract, the following requirements shall apply:
1. The retainage amount shall be determined by the chief procurement officer and shall be specified at the time of advertisement. The retainage amount shall not be more than five percent of the contract amount, including the value of all change orders.
2. The retainage amount shall be retained from the various periodic payment estimates according to a schedule specified in the contract that in the judgment of the chief procurement officer will serve to adequately protect the city, taking into account the term, value and other elements of the contract.
3. Upon substantial completion of the public work, as determined by the chief procurement officer, and prior to computation of the final quantities, a portion, specified in the contract, of the retainage amount shall be released to the contractor.
4. Notwithstanding subsection (C)(3) of this section, the chief procurement officer may from time to time release amounts to the contractor from the retainage amount for retainage owed by the contractor to certain subcontractors upon receipt of appropriate documentation from the contractor showing that all the tasks called for in the subcontract have been satisfactorily completed. The contractor must pay all retainage owed to each subcontractor for satisfactory completion of the subcontractor's accepted work promptly after the portion of the retainage amount is released by the chief procurement officer.
5. Upon (i) final acceptance of the work, (ii) the contractor's compliance with the contract's conditions for payment and performance of the work covered by the contract in accordance with the terms and conditions thereof and compliance with all other terms and conditions of the contract, (iii) payment to all subcontractors, workers, employees, suppliers and material men for work performed and materials supplied, and (iv) computation of the final quantities of work, the retainage amount, less any damages or other amounts that the chief procurement officer determines should be deducted, shall be paid to the contractor as final payment.
(Prior code § 26-13; Amend Coun. J. 5-18-94, p. 51426; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 2-7-07, p. 97531, § 1; Amend Coun. J. 6-28-17, p. 51149, § 1)
That the final estimates and final payment on all contracts passed by the city council, which said contracts are in an original amount in excess of $50,000.00, be submitted to the committee on finance by the various departments and said final payments not be paid except on approval of the city council.
(Prior code § 26-13.1)
It shall be the duty of the chief procurement officer to insert in any contract let for any public improvement or other construction, water or sewer work, a condition to the effect that the chief procurement officer may, whenever he shall have reason to believe that the contractor has neglected or failed to pay any subcontractor, workman, or employee for work performed on or about any public improvement or other construction, water or sewer work contracted for, order and direct that no further vouchers or estimates be issued and no further payments be made upon such contract, until he shall be satisfied that such subcontractors, workmen and employees have been fully paid.
Whenever the chief procurement officer shall notify the contractor by notice personally served, or by leaving a copy thereof at the contractor's last known place of abode, that no further vouchers or estimates will be issued or payments made on the contract until the subcontractors, workmen, and employees have been paid, and the contractor shall neglect or refuse, for the space of ten days after such notice shall have been served, to pay such subcontractors, workmen, or employees, the city may apply any money due, or that may become due, under the contract to the payment of such subcontractors, workmen, and employees without other or further notice to said contractor. The failure of the city, however, to retain and apply any of such monies, or of the chief procurement officer to order or direct that no vouchers or estimates shall issue or further payments be made shall not, nor shall the paying over of such reserved percentage without such subcontractor, workman, or employee being first paid, in any way affect the liability of the contractor or of his sureties to the city or to any such subcontractor, workman, or employee upon any bond given in connection with such contract.
(Prior code § 26-14; Amend Coun. J. 7-19-00, p. 38206, § 1)
No payment shall be made on any public improvement, construction, water or sewer contract for any work, labor, or materials not specified therein, except as otherwise provided in this chapter. Whenever it shall be the opinion of the chief procurement officer, that, in order properly to complete such contract, extra work, labor or materials not provided for therein will have to be furnished or alterations will have to be made in the plans or specifications requiring additional expenditures not provided for in such contract, the chief procurement officer shall submit a report in writing to the city council, or place in the contract records on file an explanation setting forth fully what extra work, labor or materials, or alterations in the plans or specifications, are desired, the necessity therefor, and the estimated additional expenditure required for such extras or alterations. All such payments must be pursuant to contract modifications executed in accordance with the provisions of this chapter and of the "Municipal Purchasing Act For Cities of 500,000 or More Population", codified at 65 ILCS 5/8-10-1 et seq., as amended.
No extra work, labor, or materials, or alterations in the plans or specifications which will involve the expenditure of any money over and above the amount fixed as the contract price in and by such contract shall be ordered or authorized by the chief procurement officer, unless the express authority of the city council be first procured for such extras or alterations and for the expenditure of the amount to be paid therefor.
(Prior code § 26-15; Amend Coun. J. 7-19-00, p. 38206, § 1)
The Chief Procurement Officer shall advertise in such daily newspaper or newspapers published in the City as he may select, inviting proposals for the following contract:
For the publication in any newspaper published in the English language, being published at least five times a week, of those matters and things required by law or any ordinance of the City to be published in a newspaper.
All such bids shall be received, opened and acted upon in conformity with the Municipal Purchasing Act for cities of 500,000 or more population, 65 ILCS 5/8-10-1 et seq., as amended.
No advertisement for any City printing whatsoever shall be given or let to any newspaper in the City which in its columns has taught, or teaches, advocates, or abets any measures, or any people, who have for their object the overthrow by force or illegal means, of the laws of the nation, the state, or the City.
Nothing in this section shall be held to apply to any printing, notices or advertisements of the Board of Local Improvements.
(Prior code § 26-16; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 11-26-19, p. 11390, Art. X, § 1)
Contracts may be made with any county in the state, or with the trustees of any town or village in Cook County, for the care and custody of prisoners in the house of correction, at a price not less than $.25 per day for each prisoner. All such contracts shall extend for the care of such prisoners until the expiration of their terms of sentence. Under such contracts the labor of every such prisoner shall be the property of, and for the benefit of the city.
(Prior code § 26-24)
Nothing contained in this chapter shall be deemed to apply to the letting of contracts and accepting of bids for the construction of local improvements pursuant to Article 84 of the Revised Cities and Villages Act of the State of Illinois.
(Prior code § 26-25)
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