SB3023 EnrolledLRB098 17607 HEP 52719 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Mechanics Lien Act is amended by changing
5Sections 1 and 21 as follows:
 
6    (770 ILCS 60/1)  (from Ch. 82, par. 1)
7    Sec. 1. Contractor defined; amount of lien; waiver of lien;
8attachment of lien; agreement to waive; when not enforceable.
9    (a) Any person who shall by any contract or contracts,
10express or implied, or partly expressed or implied, with the
11owner of a lot or tract of land, or with one whom the owner has
12authorized or knowingly permitted to contract, to improve the
13lot or tract of land or for the purpose of improving the tract
14of land, or to manage a structure under construction thereon,
15is known under this Act as a contractor and has a lien upon the
16whole of such lot or tract of land and upon adjoining or
17adjacent lots or tracts of land of such owner constituting the
18same premises and occupied or used in connection with such lot
19or tract of land as a place of residence or business; and in
20case the contract relates to 2 or more buildings, on 2 or more
21lots or tracts of land, upon all such lots and tracts of land
22and improvements thereon for the amount due to him or her for
23the material, fixtures, apparatus, machinery, services or

 

 

SB3023 Enrolled- 2 -LRB098 17607 HEP 52719 b

1labor, and interest at the rate of 10% per annum from the date
2the same is due. This lien extends to an estate in fee, for
3life, for years, or any other estate or any right of redemption
4or other interest that the owner may have in the lot or tract
5of land at the time of making such contract or may subsequently
6acquire and this lien attaches as of the date of the contract.
7    (b) As used in subsection (a) of this Section, "improve"
8means to furnish labor, services, material, fixtures,
9apparatus or machinery, forms or form work in the process of
10construction where cement, concrete or like material is used
11for the purpose of or in the building, altering, repairing or
12ornamenting any house or other building, walk or sidewalk,
13whether the walk or sidewalk is on the land or bordering
14thereon, driveway, fence or improvement or appurtenances to the
15lot or tract of land or connected therewith, and upon, over or
16under a sidewalk, street or alley adjoining; or fill, sod or
17excavate such lot or tract of land, or do landscape work
18thereon or therefor; or raise or lower any house thereon or
19remove any house thereto, or remove any house or other
20structure therefrom, or perform any services or incur any
21expense as an architect, structural engineer, professional
22engineer, land surveyor or property manager in, for or on a lot
23or tract of land for any such purpose; or drill any water well
24thereon; or furnish or perform labor or services as
25superintendent, time keeper, mechanic, laborer or otherwise,
26in the building, altering, repairing or ornamenting of the

 

 

SB3023 Enrolled- 3 -LRB098 17607 HEP 52719 b

1same; or furnish material, fixtures, apparatus, machinery,
2labor or services, forms or form work used in the process of
3construction where concrete, cement or like material is used,
4or drill any water well on the order of his agent, architect,
5structural engineer or superintendent having charge of the
6improvements, building, altering, repairing or ornamenting the
7same.
8    (c) The taking of additional security by the contractor or
9sub-contractor is not a waiver of any right of lien which he
10may have by virtue of this Act, unless made a waiver by express
11agreement of the parties and the waiver is not prohibited by
12this Act.
13    (d) An agreement to waive any right to enforce or claim any
14lien under this Act, or an agreement to subordinate the lien,
15where the agreement is in anticipation of and in consideration
16for the awarding of a contract or subcontract, either express
17or implied, to perform work or supply materials for an
18improvement upon real property is against public policy and
19unenforceable. This Section does not prohibit release of lien
20under subsection (b) of Section 35 of this Act, nor does it
21prohibit an agreement to subordinate a mechanics lien to a
22mortgage lien that secures a construction loan if that
23agreement is made after more than 50% of the loan has been
24disbursed to fund improvements to the property or prohibit
25subordination of the lien, except as provided in Section 21.
26(Source: P.A. 94-627, eff. 1-1-06.)
 

 

 

SB3023 Enrolled- 4 -LRB098 17607 HEP 52719 b

1    (770 ILCS 60/21)  (from Ch. 82, par. 21)
2    Sec. 21. Sub-contractor defined; lien of sub-contractor;
3notice; size of type; service of notice; amount of lien;
4default by contractor.
5    (a) Subject to the provisions of Section 5, every mechanic,
6worker or other person who shall furnish any labor, services,
7material, fixtures, apparatus or machinery, forms or form work
8for the contractor, or shall furnish any material to be
9employed in the process of construction as a means for
10assisting in the erection of the building or improvement in
11what is commonly termed form or form work where concrete,
12cement or like material is used in whole or in part, shall be
13known under this Act as a sub-contractor, and shall have a lien
14for the value thereof, with interest on such amount from the
15date the same is due, from the same time, on the same property
16as provided for the contractor, and, also, as against the
17creditors and assignees, and personal and legal
18representatives of the contractor, on the material, fixtures,
19apparatus or machinery furnished, and on the moneys or other
20considerations due or to become due from the owner under the
21original contract.
22    (b) If the legal effect of a provision in any contract
23between the owner and contractor or contractor and
24subcontractor is that no lien or claim may be filed or
25maintained by any one and the waiver is not prohibited by this

 

 

SB3023 Enrolled- 5 -LRB098 17607 HEP 52719 b

1Act, or that such contractor's lien shall be subordinated to
2the interests of any other party, and the provision is not
3prohibited by this Act, such provision shall be binding if made
4as part of an agreement not prohibited by this Act. such
5provision shall be binding; but the only admissible evidence
6thereof as against a subcontractor or material supplier, shall
7be proof of actual notice thereof to him or her before his or
8her contract is entered into. Such subordination provision
9shall not be binding on the subcontractor unless set forth in
10its entirety in writing in the contract between the contractor
11and subcontractor or material supplier.
12    (c) It shall be the duty of each subcontractor who has
13furnished, or is furnishing, labor, services, material,
14fixtures, apparatus or machinery, forms or form work for an
15existing owner-occupied single family residence, in order to
16preserve his lien, to notify the occupant either personally or
17by certified mail, return receipt requested, addressed to the
18occupant or his agent of the residence within 60 days from his
19first furnishing labor, services, material, fixtures,
20apparatus or machinery, forms or form work, that he is
21supplying labor, services, material, fixtures, apparatus or
22machinery, forms or form work provided, however, that any
23notice given after 60 days by the subcontractor shall preserve
24his lien, but only to the extent that the owner has not been
25prejudiced by payments made prior to receipt of the notice. The
26notification shall include a warning to the owner that before

 

 

SB3023 Enrolled- 6 -LRB098 17607 HEP 52719 b

1any payment is made to the contractor, the owner should receive
2a waiver of lien executed by each subcontractor who has
3furnished labor, services, material, fixtures, apparatus or
4machinery, forms or form work.
5    The notice shall contain the name and address of the
6subcontractor or material man, the date he started to work or
7to deliver materials, the type of work done and to be done or
8the type of materials delivered and to be delivered, and the
9name of the contractor requesting the work. The notice shall
10also contain the following warning:
11
"NOTICE TO OWNER
12    The subcontractor providing this notice has performed work
13for or delivered material to your home improvement contractor.
14These services or materials are being used in the improvements
15to your residence and entitle the subcontractor to file a lien
16against your residence if the services or materials are not
17paid for by your home improvement contractor. A lien waiver
18will be provided to your contractor when the subcontractor is
19paid, and you are urged to request this waiver from your
20contractor when paying for your home improvements."
21    Such warning shall be in at least 10 point bold face type.
22For purposes of this Section, notice by certified mail is
23considered served at the time of its mailing.
24    (d) In no case, except as hereinafter provided, shall the
25owner be compelled to pay a greater sum for or on account of
26the completion of such house, building or other improvement

 

 

SB3023 Enrolled- 7 -LRB098 17607 HEP 52719 b

1than the price or sum stipulated in said original contract or
2agreement, unless payment be made to the contractor or to his
3order, in violation of the rights and interests of the persons
4intended to be benefited by this Act: Provided, if it shall
5appear to the court that the owner and contractor fraudulently,
6and for the purpose of defrauding sub-contractors fixed an
7unreasonably low price in their original contract for the
8erection or repairing of such house, building or other
9improvement, then the court shall ascertain how much of a
10difference exists between a fair price for labor, services,
11material, fixtures, apparatus or machinery, forms or form work
12used in said house, building or other improvement, and the sum
13named in said original contract, and said difference shall be
14considered a part of the contract and be subject to a lien. But
15where the contractor's statement, made as provided in Section
165, shows the amount to be paid to the sub-contractor, or party
17furnishing material, or the sub-contractor's statement, made
18pursuant to Section 22, shows the amount to become due for
19material; or notice is given to the owner, as provided in
20Sections 24 and 25, and thereafter such sub-contract shall be
21performed, or material to the value of the amount named in such
22statements or notice, shall be prepared for use and delivery,
23or delivered without written protest on the part of the owner
24previous to such performance or delivery, or preparation for
25delivery, then, and in any of such cases, such sub-contractor
26or party furnishing or preparing material, regardless of the

 

 

SB3023 Enrolled- 8 -LRB098 17607 HEP 52719 b

1price named in the original contract, shall have a lien
2therefor to the extent of the amount named in such statements
3or notice. In case of default or abandonment by the contractor,
4the sub-contractor or party furnishing material, shall have and
5may enforce his lien to the same extent and in the same manner
6that the contractor may under conditions that arise as provided
7for in Section 4 of this Act, and shall have and may exercise
8the same rights as are therein provided for the contractor.
9    (e) Any provision in a contract, agreement, or
10understanding, when payment from a contractor to a
11subcontractor or supplier is conditioned upon receipt of the
12payment from any other party including a private or public
13owner, shall not be a defense by the party responsible for
14payment to a claim brought under Section 21, 22, 23, or 28 of
15this Act against the party. For the purpose of this Section,
16"contractor" also includes subcontractor or supplier. The
17provisions of Public Act 87-1180 shall be construed as
18declarative of existing law and not as a new enactment.
19(Source: P.A. 94-615, eff. 1-1-06; 94-627, eff. 1-1-06.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.