Illinois licenses construction contractors at the state level, which requires the purchase of a contractor license bond. Additionally, some Illinois municipalities have local licensing and bonding requirements.
Illinois’s “Little Miller Act” requires performance bonds and payment bonds from contractors working on state-funded public works projects estimated to be above a certain threshold level in terms of value. Some local government entities and many private project owners also have performance and payment bonding requirements. Bid bonds may also be required by project owners that award construction contracts through a competitive bidding process.
In addition to these bonds, which are by far the most common Illinois construction bonds, both public and private project owners may require others, such as:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
