SPRINGFIELD – Legislation introduced by State Senator Ram Villivalam that will ensure subcontractors receive payments for their work in a timely manner was signed into law last Friday.

“With this legislation, we’re making the payment process as seamless and transparent as possible, while also ensuring that smaller contractors receive their payments on time.” Villivalam (D-Chicago) said. “Waiting on funds for too long can make or break small businesses.”

Senate Bill 104 would require that subcontractors be paid within ten business days after the prime contractor receives payment. The overwhelming majority of prime contractors receive electronic payments from the state, reducing the need for time when the subcontractors are waiting to be paid their share for work already performed.

Additionally, IDOT will be required to publish a searchable database on its website containing the names and owed balances of subcontractors for each pay period, ensuring transparency and accessibility in the payment process.

This legislation takes effect immediately.