What are the prompt payment rules for construction in Illinois?
Last reviewed July 5, 2026
In Illinois, general contractors must pay subcontractors within 15 days after receiving payment from the owner. If they don't pay on time, they may face penalties. Also, Illinois law requires a written notice for late payments after 30 days.
Key points
- 15-day payment rule for subs after GC gets paid
- Penalties for late payments apply
- Written notice needed for late payments after 30 days
Make sure to track payment timelines closely to avoid penalties. Illinois law emphasizes prompt payment, so having a solid process for managing pay apps and ensuring timely payment to subs is key. Check the Illinois Prompt Payment Act for specifics on penalties and requirements.
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Alloovium helps track compliance with payment deadlines and manage documentation.
See how it worksRelated questions
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General information for US construction professionals — not legal advice. Lien deadlines, retainage caps and notice rules vary by state; verify with the state statute or a construction attorney.