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| | HB4660 Enrolled | | LRB103 38254 JRC 68389 b |
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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, 21, and 24 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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1 | | notice, shall be prepared for use and delivery, or delivered |
2 | | without written protest on the part of the owner previous to |
3 | | such performance or delivery, or preparation for delivery, |
4 | | then, and in any of such cases, such subcontractor |
5 | | sub-contractor or party furnishing or preparing material, |
6 | | regardless of the price named in the original contract, shall |
7 | | have a lien therefor to the extent of the amount named in such |
8 | | statements or notice. In case of default or abandonment by the |
9 | | contractor, the subcontractor sub-contractor or party |
10 | | furnishing material, shall have and may enforce the |
11 | | subcontractor's his lien to the same extent and in the same |
12 | | manner that the contractor may under conditions that arise as |
13 | | provided for in Section 4 of this Act, and shall have and may |
14 | | exercise the same rights as are therein provided for the |
15 | | contractor. |
16 | | (e) Any provision in a contract, agreement, or |
17 | | understanding, when payment from a contractor to a |
18 | | subcontractor or supplier is conditioned upon receipt of the |
19 | | payment from any other party including a private or public |
20 | | owner, shall not be a defense by the party responsible for |
21 | | payment to a claim brought under Section 21, 22, 23, or 28 of |
22 | | this Act against the party. For the purpose of this Section, |
23 | | "contractor" also includes subcontractor or supplier. The |
24 | | provisions of Public Act 87-1180 shall be construed as |
25 | | declarative of existing law and not as a new enactment. |
26 | | (Source: P.A. 98-764, eff. 7-16-14.)
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| | HB4660 Enrolled | - 9 - | LRB103 38254 JRC 68389 b |
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1 | | (770 ILCS 60/24) (from Ch. 82, par. 24) |
2 | | Sec. 24. Written notice by subcontractor sub-contractor ; |
3 | | service; when notice not necessary; form of notice. |
4 | | (a) Subcontractors Sub-contractors , or parties furnishing |
5 | | labor, materials, fixtures, apparatus, machinery, or services, |
6 | | may at any time after making his or her contract with the |
7 | | contractor, and shall within 90 days after the completion |
8 | | thereof, or, if extra or additional work or material is |
9 | | delivered thereafter, within 90 days after the date of |
10 | | completion of such extra or additional work or final delivery |
11 | | of such extra or additional material, cause a written notice |
12 | | of his or her claim and the amount due or to become due |
13 | | thereunder, to be provided to the owner of record or the owner |
14 | | of record's agent or architect, or the superintendent having |
15 | | charge of the building or improvement and to the lending |
16 | | agency, if known, with the written notice to be sent by : (i) |
17 | | registered or certified mail, with return receipt requested ; |
18 | | (ii) a nationally recognized delivery company with tracking |
19 | | service; or (iii) personal service. Notice shall be considered |
20 | | served at the time the written notice is placed with the |
21 | | delivery service or in the mail. The , and delivery limited to |
22 | | addressee only, to or personally served on the owner of record |
23 | | or his agent or architect, or the superintendent having charge |
24 | | of the building or improvement and to the lending agency, if |
25 | | known; and such notice shall not be necessary when the sworn |