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| Public Act 103-0827
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| HB4660 Enrolled | LRB103 38254 JRC 68389 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Mechanics Lien Act is amended by changing |
Sections 5, 21, and 24 as follows:
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(770 ILCS 60/5) (from Ch. 82, par. 5) |
Sec. 5. Statement of contractor and persons furnishing |
labor, services, material, fixtures, apparatus or machinery, |
forms or form work notice to owner of owner-occupied |
single-family residence waiver; size of type. |
(a) It shall be the duty of the contractor to give the |
owner, and the duty of the owner to require of the contractor, |
before the owner or the owner's his agent, architect, or |
superintendent shall pay or cause to be paid to the contractor |
or to the contractor's his order any moneys or other |
consideration due or to become due to the contractor, or make |
or cause to be made to the contractor any advancement of any |
moneys or any other consideration, a statement in writing, |
under oath or verified by affidavit, of the names and |
addresses of all parties furnishing labor, services, material, |
fixtures, apparatus or machinery, or forms or form work and of |
the amounts due or to become due to each. Merchants and dealers |
in materials only shall not be required to make statements |
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required in this Section. |
(b) The following shall apply to an owner-occupied |
single-family residence: |
(i) Each contractor shall provide the owner or the |
owner's his or her agent, either as part of the contract or |
as a separate printed statement given before the owner or |
the owner's his agent makes the first payment for labor, |
materials, fixtures, or apparatus or machinery, the |
following notice in at least 10 point boldface type: |
"THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A |
SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES, |
MATERIAL, FIXTURES, APPARATUS OR MACHINERY, OR FORMS OR |
FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO |
THE CONTRACTOR." |
If the owners of the property are persons living |
together, the aforesaid statement is conclusively presumed |
given to each such owners if given to one of them. |
(ii) (Blank). Each subcontractor who has furnished, or |
is furnishing, labor, services, material, fixtures, |
apparatus or machinery, forms or form work in order to |
preserve his lien, shall notify the occupant either |
personally or by certified mail, return receipt requested, |
addressed to the occupant or his agent at the residence |
within 60 days from his first furnishing labor, services, |
material, fixtures, apparatus or machinery, forms or form |
work, of his agreement to do so. |
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The notice shall contain the name and address of the |
subcontractor or material man, the date he started to work |
or to deliver materials, the type of work done and to be |
done or the type of labor, services, material, fixtures, |
apparatus or machinery, forms or form work delivered and |
to be delivered, and the name of the contractor requesting |
the work. The notice shall also contain the following |
warning: |
"NOTICE TO OWNER |
The subcontractor providing this notice has performed |
work for or delivered material to your home improvement |
contractor. These services or materials are being used in |
the improvements to your residence and entitle the |
subcontractor to file a lien against your residence if the |
labor, services, material, fixtures, apparatus or |
machinery, forms or form work are not paid for by your home |
improvement contractor. A lien waiver will be provided to |
your contractor when the subcontractor is paid, and you |
are urged to request this waiver from your contractor when |
paying for your home improvements." |
(iii) (Blank). The statement and the notices required |
by subdivisions (b)(i) and (b)(ii) of this Section shall |
be in at least 10 point boldface type. For purposes of this |
Section, notice by certified mail is considered served at |
the time of its mailing. Any notice given pursuant to |
subdivision (b)(ii) of this Section after 60 days by the |
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subcontractor, however, shall preserve his or her lien, |
but only to the extent that the owner has not been |
prejudiced by payments made before receipt of the notice. |
(Source: P.A. 94-627, eff. 1-1-06.)
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(770 ILCS 60/21) (from Ch. 82, par. 21) |
Sec. 21. Subcontractor Sub-contractor defined; lien of |
subcontractor sub-contractor; notice; size of type; service of |
notice; amount of lien; default by contractor. |
(a) Subject to the provisions of Section 5, every |
mechanic, worker, or other person who shall furnish any labor, |
services, material, fixtures, apparatus or machinery, or forms |
or form work for the contractor, or shall furnish any material |
to be employed in the process of construction as a means for |
assisting in the erection of the building or improvement in |
what is commonly termed form or form work where concrete, |
cement, or like material is used in whole or in part, shall be |
known under this Act as a subcontractor sub-contractor, and |
shall have a lien for the value thereof, with interest on such |
amount from the date the same is due, from the same time, on |
the same property as provided for the contractor, and, also, |
as against the creditors and assignees, and personal and legal |
representatives of the contractor, on the material, fixtures, |
or apparatus or machinery furnished, and on the moneys or |
other considerations due or to become due from the owner under |
the original contract. |
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(b) If the legal effect of a provision in any contract |
between the owner and contractor or contractor and |
subcontractor is that no lien or claim may be filed or |
maintained, or that such contractor's lien shall be |
subordinated to the interests of any other party, and the |
provision is not prohibited by this Act, such provision shall |
be binding if made as part of an agreement not prohibited by |
this Act. |
(c) It shall be the duty of each subcontractor who has |
furnished, or is furnishing, labor, services, material, |
fixtures, apparatus or machinery, or forms or form work for an |
existing owner-occupied single family residence, in order to |
preserve the subcontractor's his lien, to notify the occupant |
either personally or by certified mail, return receipt |
requested, addressed to the occupant or the occupant's his |
agent of the residence within 60 days from the subcontractor's |
his first furnishing labor, services, material, fixtures, |
apparatus or machinery, or forms or form work, that the |
subcontractor he is supplying labor, services, material, |
fixtures, apparatus or machinery, or forms or form work |
provided, however, that any notice given after 60 days by the |
subcontractor shall preserve the subcontractor's his lien, but |
only to the extent that the owner has not been prejudiced by |
payments made prior to receipt of the notice. The notification |
shall include a warning to the owner that before any payment is |
made to the contractor, the owner should receive a waiver of |
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lien executed by each subcontractor who has furnished labor, |
services, material, fixtures, apparatus or machinery, or forms |
or form work. |
The notice shall contain the name and address of the |
subcontractor or material supplier man, the date the |
subcontractor or material supplier he started to work or to |
deliver materials, the type of work done and to be done or the |
type of labor, services, materials, fixtures, apparatus or |
machinery, or forms or form work delivered and to be |
delivered, and the name of the contractor requesting the work. |
The notice shall also contain the following warning: |
"NOTICE TO OWNER |
The subcontractor providing this notice has performed work |
for or delivered material to your home improvement contractor. |
These services or materials are being used in the improvements |
to your residence and entitle the subcontractor to file a lien |
against your residence if the labor, services, or materials, |
fixtures, apparatus or machinery, or forms or form work are |
not paid for by your home improvement contractor. A lien |
waiver will be provided to your contractor when the |
subcontractor is paid, and you are urged to request this |
waiver from your contractor when paying for your home |
improvements." |
Such warning shall be in at least 10 point bold face type. |
For purposes of this Section, notice by certified mail is |
considered served at the time of its mailing. |
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(d) In no case, except as hereinafter provided, shall the |
owner be compelled to pay a greater sum for or on account of |
the completion of such house, building, or other improvement |
than the price or sum stipulated in said original contract or |
agreement, unless payment be made to the contractor or to the |
contractor's his order, in violation of the rights and |
interests of the persons intended to be benefited by this Act: |
Provided, if it shall appear to the court that the owner and |
contractor fraudulently, and for the purpose of defrauding |
subcontractors sub-contractors fixed an unreasonably low price |
in their original contract for the erection or repairing of |
such house, building, or other improvement, then the court |
shall ascertain how much of a difference exists between a fair |
price for labor, services, material, fixtures, apparatus or |
machinery, or forms or form work used in said house, building |
or other improvement, and the sum named in said original |
contract, and said difference shall be considered a part of |
the contract and be subject to a lien. But where the |
contractor's statement, made as provided in Section 5, shows |
the amount to be paid to the subcontractor sub-contractor, or |
party furnishing material, or the subcontractor's |
sub-contractor's statement, made pursuant to Section 22, shows |
the amount to become due for material; or notice is given to |
the owner, as provided in Sections 24 and 25, and thereafter |
such subcontractor sub-contract shall be performed, or |
material to the value of the amount named in such statements or |
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notice, shall be prepared for use and delivery, or delivered |
without written protest on the part of the owner previous to |
such performance or delivery, or preparation for delivery, |
then, and in any of such cases, such subcontractor |
sub-contractor or party furnishing or preparing material, |
regardless of the price named in the original contract, shall |
have a lien therefor to the extent of the amount named in such |
statements or notice. In case of default or abandonment by the |
contractor, the subcontractor sub-contractor or party |
furnishing material, shall have and may enforce the |
subcontractor's his lien to the same extent and in the same |
manner that the contractor may under conditions that arise as |
provided for in Section 4 of this Act, and shall have and may |
exercise the same rights as are therein provided for the |
contractor. |
(e) Any provision in a contract, agreement, or |
understanding, when payment from a contractor to a |
subcontractor or supplier is conditioned upon receipt of the |
payment from any other party including a private or public |
owner, shall not be a defense by the party responsible for |
payment to a claim brought under Section 21, 22, 23, or 28 of |
this Act against the party. For the purpose of this Section, |
"contractor" also includes subcontractor or supplier. The |
provisions of Public Act 87-1180 shall be construed as |
declarative of existing law and not as a new enactment. |
(Source: P.A. 98-764, eff. 7-16-14.)
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