Surety bonds • Illinois
Illinois Public Construction Bonds: Public Construction Bond Act Requirements
Under the Illinois Public Construction Bond Act, contractors on public work for the state and its political subdivisions generally must provide performance and payment bonds on contracts costing over $150,000. IDOT and Illinois Tollway public works contracts need bonds above $500,000, and local governments may require bonds on smaller contracts. Public Act 104-0168 changes these thresholds in future years.
This guide covers the current thresholds, local options, scheduled changes, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
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Current thresholds
| Public owner | Bond required when |
|---|---|
| State and political subdivisions (general) | Public work costs over $150,000 |
| IDOT and Illinois State Toll Highway Authority | Public works contract costs more than $500,000 |
| Local governmental units | May require bonds by ordinance or resolution on contracts of $150,000 or less |
Scheduled changes
Public Act 104-0168 (Public Construction Bond Act) takes effect June 1, 2027 and changes the general threshold for state and political subdivision public work to contracts costing over $50,000 starting January 1, 2029. Check the current text of the Act before bidding.
Who the bonds protect
The performance bond protects the public owner, and the payment bond protects subcontractors and suppliers who furnish labor or materials. Claimants should follow the Act’s notice deadlines carefully and get legal advice early.
How much Illinois contract bonds cost
Performance and payment bonds are usually priced together, commonly about 0.5% to 3% of the contract amount based on the contractor’s finances and experience (NASBP).
Illinois public construction bond FAQs
When are public construction bonds required in Illinois?
Generally on public work for the state and political subdivisions costing over $150,000, and on IDOT and Tollway contracts over $500,000.
Can Illinois local governments require bonds on small contracts?
Yes, by ordinance or resolution, on contracts of $150,000 or less.
Are the Illinois thresholds changing?
Public Act 104-0168 lowers the general threshold to $50,000 starting January 1, 2029.
Related guides
- Illinois surety bonds
- Performance bonds
- Payment bonds
- Ohio public improvement bond
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
- Iowa public works bond
- Oklahoma public works bond
- South Carolina public works bond
- Alabama public works bond
- Tennessee public works bond
- Washington public works bond
- Michigan public works bond
- Pennsylvania public works bond
- New Jersey public works bond
Important information
Compensation. The link in the partner quote box near the top of this page is sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your Illinois public project, and a licensed agent will help you set up bonding.
