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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Mechanics Lien Act is amended by changing | |||||||||||||||||||||
5 | Sections 5 and 21 as follows:
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6 | (770 ILCS 60/5) (from Ch. 82, par. 5) | |||||||||||||||||||||
7 | Sec. 5. Statement of contractor and persons furnishing | |||||||||||||||||||||
8 | labor, services, material, fixtures, apparatus or machinery, | |||||||||||||||||||||
9 | forms or form work notice to owner of owner-occupied | |||||||||||||||||||||
10 | single-family residence waiver; size of type . | |||||||||||||||||||||
11 | (a) It shall be the duty of the contractor to give the | |||||||||||||||||||||
12 | owner, and the duty of the owner to require of the contractor, | |||||||||||||||||||||
13 | before the owner or the owner's his agent, architect, or | |||||||||||||||||||||
14 | superintendent shall pay or cause to be paid to the contractor | |||||||||||||||||||||
15 | or to the contractor's his order any moneys or other | |||||||||||||||||||||
16 | consideration due or to become due to the contractor, or make | |||||||||||||||||||||
17 | or cause to be made to the contractor any advancement of any | |||||||||||||||||||||
18 | moneys or any other consideration, a statement in writing, | |||||||||||||||||||||
19 | under oath or verified by affidavit, of the names and | |||||||||||||||||||||
20 | addresses of all parties furnishing labor, services, material, | |||||||||||||||||||||
21 | fixtures, apparatus or machinery, or forms or form work and of | |||||||||||||||||||||
22 | the amounts due or to become due to each. Merchants and dealers | |||||||||||||||||||||
23 | in materials only shall not be required to make statements |
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1 | required in this Section. | ||||||
2 | (b) The following shall apply to an owner-occupied | ||||||
3 | single-family residence: | ||||||
4 | (i) Each contractor shall provide the owner or the | ||||||
5 | owner's his or her agent, either as part of the contract or | ||||||
6 | as a separate printed statement given before the owner or | ||||||
7 | the owner's his agent makes the first payment for labor, | ||||||
8 | materials, fixtures, or apparatus or machinery, the | ||||||
9 | following notice in at least 10 point boldface type : | ||||||
10 | "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A | ||||||
11 | SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES, | ||||||
12 | MATERIAL, FIXTURES, APPARATUS OR MACHINERY, OR FORMS OR | ||||||
13 | FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO | ||||||
14 | THE CONTRACTOR." | ||||||
15 | If the owners of the property are persons living | ||||||
16 | together, the aforesaid statement is conclusively presumed | ||||||
17 | given to each such owners if given to one of them. | ||||||
18 | (ii) (Blank). Each subcontractor who has furnished, or | ||||||
19 | is furnishing, labor, services, material, fixtures, | ||||||
20 | apparatus or machinery, forms or form work in order to | ||||||
21 | preserve his lien, shall notify the occupant either | ||||||
22 | personally or by certified mail, return receipt requested, | ||||||
23 | addressed to the occupant or his agent at the residence | ||||||
24 | within 60 days from his first furnishing labor, services, | ||||||
25 | material, fixtures, apparatus or machinery, forms or form | ||||||
26 | work, of his agreement to do so. |
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1 | The notice shall contain the name and address of the | ||||||
2 | subcontractor or material man, the date he started to work | ||||||
3 | or to deliver materials, the type of work done and to be | ||||||
4 | done or the type of labor, services, material, fixtures, | ||||||
5 | apparatus or machinery, forms or form work delivered and | ||||||
6 | to be delivered, and the name of the contractor requesting | ||||||
7 | the work. The notice shall also contain the following | ||||||
8 | warning: | ||||||
9 | "NOTICE TO OWNER | ||||||
10 | The subcontractor providing this notice has performed | ||||||
11 | work for or delivered material to your home improvement | ||||||
12 | contractor. These services or materials are being used in | ||||||
13 | the improvements to your residence and entitle the | ||||||
14 | subcontractor to file a lien against your residence if the | ||||||
15 | labor, services, material, fixtures, apparatus or | ||||||
16 | machinery, forms or form work are not paid for by your home | ||||||
17 | improvement contractor. A lien waiver will be provided to | ||||||
18 | your contractor when the subcontractor is paid, and you | ||||||
19 | are urged to request this waiver from your contractor when | ||||||
20 | paying for your home improvements." | ||||||
21 | (iii) (Blank). The statement and the notices required | ||||||
22 | by subdivisions (b)(i) and (b)(ii) of this Section shall | ||||||
23 | be in at least 10 point boldface type. For purposes of this | ||||||
24 | Section, notice by certified mail is considered served at | ||||||
25 | the time of its mailing. Any notice given pursuant to | ||||||
26 | subdivision (b)(ii) of this Section after 60 days by the |
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1 | subcontractor, however, shall preserve his or her lien, | ||||||
2 | but only to the extent that the owner has not been | ||||||
3 | prejudiced by payments made before receipt of the notice. | ||||||
4 | (Source: P.A. 94-627, eff. 1-1-06.)
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5 | (770 ILCS 60/21) (from Ch. 82, par. 21) | ||||||
6 | Sec. 21. Subcontractor Sub-contractor defined; lien of | ||||||
7 | subcontractor sub-contractor ; notice; size of type; service of | ||||||
8 | notice; amount of lien; default by contractor. | ||||||
9 | (a) Subject to the provisions of Section 5, every | ||||||
10 | mechanic, worker , or other person who shall furnish any labor, | ||||||
11 | services, material, fixtures, apparatus or machinery, or forms | ||||||
12 | or form work for the contractor, or shall furnish any material | ||||||
13 | to be employed in the process of construction as a means for | ||||||
14 | assisting in the erection of the building or improvement in | ||||||
15 | what is commonly termed form or form work where concrete, | ||||||
16 | cement , or like material is used in whole or in part, shall be | ||||||
17 | known under this Act as a subcontractor sub-contractor , and | ||||||
18 | shall have a lien for the value thereof, with interest on such | ||||||
19 | amount from the date the same is due, from the same time, on | ||||||
20 | the same property as provided for the contractor, and, also, | ||||||
21 | as against the creditors and assignees, and personal and legal | ||||||
22 | representatives of the contractor, on the material, fixtures, | ||||||
23 | or apparatus or machinery furnished, and on the moneys or | ||||||
24 | other considerations due or to become due from the owner under | ||||||
25 | the original contract. |
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1 | (b) If the legal effect of a provision in any contract | ||||||
2 | between the owner and contractor or contractor and | ||||||
3 | subcontractor is that no lien or claim may be filed or | ||||||
4 | maintained, or that such contractor's lien shall be | ||||||
5 | subordinated to the interests of any other party, and the | ||||||
6 | provision is not prohibited by this Act, such provision shall | ||||||
7 | be binding if made as part of an agreement not prohibited by | ||||||
8 | this Act. | ||||||
9 | (c) It shall be the duty of each subcontractor who has | ||||||
10 | furnished, or is furnishing, labor, services, material, | ||||||
11 | fixtures, apparatus or machinery, or forms or form work for an | ||||||
12 | existing owner-occupied single family residence, in order to | ||||||
13 | preserve the subcontractor's his lien, to notify the occupant | ||||||
14 | either personally or by certified mail, return receipt | ||||||
15 | requested, addressed to the occupant or the occupant's his | ||||||
16 | agent of the residence within 60 days from the subcontractor's | ||||||
17 | his first furnishing labor, services, material, fixtures, | ||||||
18 | apparatus or machinery, or forms or form work, that the | ||||||
19 | subcontractor he is supplying labor, services, material, | ||||||
20 | fixtures, apparatus or machinery, or forms or form work | ||||||
21 | provided, however, that any notice given after 60 days by the | ||||||
22 | subcontractor shall preserve the subcontractor's his lien, but | ||||||
23 | only to the extent that the owner has not been prejudiced by | ||||||
24 | payments made prior to receipt of the notice. The notification | ||||||
25 | shall include a warning to the owner that before any payment is | ||||||
26 | made to the contractor, the owner should receive a waiver of |
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1 | lien executed by each subcontractor who has furnished labor, | ||||||
2 | services, material, fixtures, apparatus or machinery, or forms | ||||||
3 | or form work. | ||||||
4 | The notice shall contain the name and address of the | ||||||
5 | subcontractor or material supplier man , the date the | ||||||
6 | subcontractor or material supplier he started to work or to | ||||||
7 | deliver materials, the type of work done and to be done or the | ||||||
8 | type of labor, services, materials , fixtures, apparatus or | ||||||
9 | machinery, or forms or form work delivered and to be | ||||||
10 | delivered, and the name of the contractor requesting the work. | ||||||
11 | The notice shall also contain the following warning: | ||||||
12 | "NOTICE TO OWNER | ||||||
13 | The subcontractor providing this notice has performed work | ||||||
14 | for or delivered material to your home improvement contractor. | ||||||
15 | These services or materials are being used in the improvements | ||||||
16 | to your residence and entitle the subcontractor to file a lien | ||||||
17 | against your residence if the labor, services , or materials , | ||||||
18 | fixtures, apparatus or machinery, or forms or form work are | ||||||
19 | not paid for by your home improvement contractor. A lien | ||||||
20 | waiver will be provided to your contractor when the | ||||||
21 | subcontractor is paid, and you are urged to request this | ||||||
22 | waiver from your contractor when paying for your home | ||||||
23 | improvements." | ||||||
24 | Such warning shall be in at least 10 point bold face type. | ||||||
25 | For purposes of this Section, notice by certified mail is | ||||||
26 | considered served at the time of its mailing. |
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1 | (d) In no case, except as hereinafter provided, shall the | ||||||
2 | owner be compelled to pay a greater sum for or on account of | ||||||
3 | the completion of such house, building , or other improvement | ||||||
4 | than the price or sum stipulated in said original contract or | ||||||
5 | agreement, unless payment be made to the contractor or to the | ||||||
6 | contractor's his order, in violation of the rights and | ||||||
7 | interests of the persons intended to be benefited by this Act: | ||||||
8 | Provided, if it shall appear to the court that the owner and | ||||||
9 | contractor fraudulently, and for the purpose of defrauding | ||||||
10 | subcontractors sub-contractors fixed an unreasonably low price | ||||||
11 | in their original contract for the erection or repairing of | ||||||
12 | such house, building , or other improvement, then the court | ||||||
13 | shall ascertain how much of a difference exists between a fair | ||||||
14 | price for labor, services, material, fixtures, apparatus or | ||||||
15 | machinery, or forms or form work used in said house, building | ||||||
16 | or other improvement, and the sum named in said original | ||||||
17 | contract, and said difference shall be considered a part of | ||||||
18 | the contract and be subject to a lien. But where the | ||||||
19 | contractor's statement, made as provided in Section 5, shows | ||||||
20 | the amount to be paid to the subcontractor sub-contractor , or | ||||||
21 | party furnishing material, or the subcontractor's | ||||||
22 | sub-contractor's statement, made pursuant to Section 22, shows | ||||||
23 | the amount to become due for material; or notice is given to | ||||||
24 | the owner, as provided in Sections 24 and 25, and thereafter | ||||||
25 | such subcontractor sub-contract shall be performed, or | ||||||
26 | material to the value of the amount named in such statements or |
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