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Illinois: State-by-State Summary of Prompt Payment

Illinois

Owner to Prime Contractor (Private): 15 days after approval of invoice. Invoice is deemed approved 25 days after receipt unless owner notifies prime contractor otherwise

Prime Contractor to Subcontractor (Private): 15 days after receipt of payment from owner.

Interest/Penalties (Private): Interest at a rate of 10% per annum.

Owner to Prime Contractor (Public): Local governments: must approve invoice within the later of 30 days after receipt or 30 days after receipt of goods or services. Payment is due 30 days after approval; State government: 60 days of receipt of invoice.

Prime Contractor to Subcontractor (Public): 15 days of receipt of payment from a local government owner; the earlier of 10 business days or 15 calendar days after receipt of payment from a state government owner.

Interest/Penalties (Public): Prime contractors: interest at a rate of 1% per month; Subcontractor: interest at a rate of 2% per month.

Pay-If-Paid Permissible: Yes.

Disclaimer: This information was published on July 1, 2020. Please contact Josh Levy, Eric Meier or Samantha Schacht for modifications made by Illinois since that date. Visit our 50-State Construction Law Map for information on other states.