|
| | SB3023 Enrolled | | LRB098 17607 HEP 52719 b |
|
|
1 | | AN ACT concerning civil law.
|
2 | | Be it enacted by the People of the State of Illinois,
|
3 | | represented in the General Assembly:
|
4 | | Section 5. The Mechanics Lien Act is amended by changing |
5 | | Sections 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; |
8 | | attachment of lien; agreement to waive; when not enforceable.
|
9 | | (a) Any person who shall by any contract or contracts, |
10 | | express or
implied, or partly expressed or implied, with the |
11 | | owner of a lot or
tract of land, or with one whom the owner has |
12 | | authorized or knowingly
permitted to contract, to improve the |
13 | | lot or tract of land or for the purpose of improving the tract |
14 | | of land, or to manage a
structure under construction thereon, |
15 | | is known under this Act as a contractor and has a lien upon the |
16 | | whole of such lot or tract of land and upon adjoining or |
17 | | adjacent lots or tracts of land of such owner constituting the |
18 | | same premises and occupied or used in connection with such lot |
19 | | or tract of land as a place of residence or business; and in |
20 | | case the contract relates to 2 or more buildings, on 2 or more |
21 | | lots or tracts of land, upon all such lots and tracts of land |
22 | | and improvements thereon for the amount due to him or her for |
23 | | the material, fixtures, apparatus, machinery, services or |
|
| | SB3023 Enrolled | - 2 - | LRB098 17607 HEP 52719 b |
|
|
1 | | labor, and interest at the rate of 10% per annum from the date |
2 | | the same is due. This lien extends to an estate in fee, for |
3 | | life, for years, or any other estate or any right of redemption |
4 | | or other interest that the owner may have in the lot or tract |
5 | | of land at the time of making such contract or may subsequently |
6 | | acquire and this lien attaches as of the date of the contract. |
7 | | (b) As used in subsection (a) of this Section, "improve" |
8 | | means to furnish labor, services, material, fixtures, |
9 | | apparatus or
machinery, forms or form work in the process of |
10 | | construction where
cement, concrete or like material is used |
11 | | for the purpose of or in the
building, altering, repairing or |
12 | | ornamenting any house or other building,
walk or sidewalk, |
13 | | whether the walk or sidewalk is on the land or bordering
|
14 | | thereon, driveway, fence or improvement or appurtenances to the |
15 | | lot or
tract of land or connected therewith, and upon, over or |
16 | | under a sidewalk,
street or alley adjoining; or fill, sod or |
17 | | excavate such lot or tract of
land, or do landscape work |
18 | | thereon or therefor; or raise or lower any house
thereon or |
19 | | remove any house thereto, or remove any house or other |
20 | | structure
therefrom, or perform any services or incur any |
21 | | expense as an architect,
structural engineer, professional |
22 | | engineer, land surveyor or
property manager in, for or on a lot |
23 | | or tract of land for any such purpose;
or drill any water well |
24 | | thereon; or furnish or perform labor or services as
|
25 | | superintendent, time keeper, mechanic, laborer or otherwise, |
26 | | in the
building, altering, repairing or ornamenting of the |
|
| | SB3023 Enrolled | - 3 - | LRB098 17607 HEP 52719 b |
|
|
1 | | same; or furnish
material, fixtures, apparatus, machinery, |
2 | | labor or services, forms or form
work used in the process of |
3 | | construction where concrete, cement or like
material is used, |
4 | | or drill any water well on the order of his agent,
architect, |
5 | | structural engineer or superintendent having charge of the
|
6 | | improvements, building, altering, repairing or ornamenting the |
7 | | same. |
8 | | (c) The taking of additional
security by the contractor or |
9 | | sub-contractor is not a waiver of any
right of lien which he |
10 | | may have by virtue of this Act, unless made a
waiver by express |
11 | | agreement of the parties and the waiver is not
prohibited by |
12 | | this Act.
|
13 | | (d) An agreement to waive any right to enforce or claim any |
14 | | lien under this Act , or an agreement to subordinate the lien, |
15 | | where the agreement is in anticipation of and in consideration |
16 | | for the awarding of a contract or subcontract, either express |
17 | | or implied, to perform work or supply materials for an |
18 | | improvement upon real property is against public policy and |
19 | | unenforceable. This Section does not prohibit release of lien |
20 | | under subsection (b) of Section 35 of this Act , nor does it |
21 | | prohibit an agreement to subordinate a mechanics lien to a |
22 | | mortgage lien that secures a construction loan if that |
23 | | agreement is made after more than 50% of the loan has been |
24 | | disbursed to fund improvements to the property or prohibit |
25 | | subordination 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; |
3 | | notice; size of type; service of notice; amount of lien; |
4 | | default by contractor.
|
5 | | (a) Subject to the provisions of Section 5, every mechanic,
|
6 | | worker or other person who shall furnish any labor, services, |
7 | | material, fixtures, apparatus or
machinery, forms or form work |
8 | | for the
contractor, or shall furnish any material to be |
9 | | employed in the process
of construction as a means for |
10 | | assisting in the erection of the building
or improvement in |
11 | | what is commonly termed form or form work where
concrete, |
12 | | cement or like material is used in whole or in part, shall be
|
13 | | known under this Act as a sub-contractor, and shall have a lien |
14 | | for the
value thereof, with interest on such amount from the |
15 | | date the same is
due, from the same time, on the same property |
16 | | as provided for the
contractor, and, also, as against the |
17 | | creditors and assignees, and
personal and legal |
18 | | representatives of the contractor, on the material,
fixtures, |
19 | | apparatus or machinery furnished, and on the moneys or other
|
20 | | considerations due or to become due from the owner under the |
21 | | original
contract. |
22 | | (b) If the legal effect of a provision in any contract |
23 | | between the owner and
contractor or contractor and |
24 | | subcontractor is that no lien or claim may be filed or |
25 | | maintained by any
one and the waiver is not prohibited by this |
|
| | SB3023 Enrolled | - 5 - | LRB098 17607 HEP 52719 b |
|
|
1 | | Act , or that such contractor's lien shall be subordinated to |
2 | | the interests of any other party, and the provision is not |
3 | | prohibited by this Act, such provision shall be
binding if made |
4 | | as part of an agreement not prohibited by this Act. such |
5 | | provision shall be
binding; but the only admissible evidence
|
6 | | thereof as against a subcontractor or material supplier, shall |
7 | | be proof of
actual notice thereof to him or her before his or |
8 | | her contract is entered into. Such subordination provision |
9 | | shall not be binding on the subcontractor unless set forth in |
10 | | its entirety in writing in the contract between the contractor |
11 | | and subcontractor or material supplier.
|
12 | | (c) It shall be the duty of each subcontractor who has |
13 | | furnished, or is
furnishing, labor, services, material, |
14 | | fixtures, apparatus or machinery, forms or form work for an |
15 | | existing owner-occupied single
family residence, in order to |
16 | | preserve his lien, to notify the occupant
either personally or |
17 | | by certified mail, return receipt requested,
addressed to the |
18 | | occupant or his agent of the residence within 60 days
from his |
19 | | first furnishing labor, services, material, fixtures, |
20 | | apparatus or machinery, forms or form work, that he is |
21 | | supplying labor, services, material, fixtures, apparatus or |
22 | | machinery, forms or form work provided, however, that any |
23 | | notice given after 60
days by the subcontractor shall preserve |
24 | | his lien, but only to the
extent that the owner has not been |
25 | | prejudiced by payments made prior to
receipt of the notice. The |
26 | | notification shall include a warning to the
owner that before |
|
| | SB3023 Enrolled | - 6 - | LRB098 17607 HEP 52719 b |
|
|
1 | | any payment is made to the contractor, the owner
should receive |
2 | | a waiver of lien executed by each subcontractor who has
|
3 | | furnished labor, services, material, fixtures, apparatus or |
4 | | machinery, forms or form work.
|
5 | | The notice shall contain the name and address of the |
6 | | subcontractor or
material man, the date he started to work or |
7 | | to deliver materials, the
type of work done and to be done or |
8 | | the type of materials delivered and
to be delivered, and the |
9 | | name of the contractor requesting the work.
The notice shall |
10 | | also contain the following warning:
|
11 | | "NOTICE TO OWNER
|
12 | | The subcontractor providing this notice has performed work |
13 | | for or
delivered material to your home improvement contractor. |
14 | | These services or
materials are being used in the improvements |
15 | | to your residence and entitle
the subcontractor to file a lien |
16 | | against your residence if the services or
materials are not |
17 | | paid for by your home improvement contractor. A lien
waiver |
18 | | will be provided to your contractor when the subcontractor is |
19 | | paid,
and you are urged to request this waiver from your |
20 | | contractor when paying
for your home improvements."
|
21 | | Such warning shall be in at least 10 point bold face type. |
22 | | For
purposes of this Section, notice by certified mail is |
23 | | considered served
at the time of its mailing.
|
24 | | (d) In no case, except as hereinafter provided, shall the |
25 | | owner be
compelled to pay a greater sum for or on account of |
26 | | the completion of
such house, building or other improvement |
|
| | SB3023 Enrolled | - 7 - | LRB098 17607 HEP 52719 b |
|
|
1 | | than the price or sum
stipulated in said original contract or |
2 | | agreement, unless payment be
made to the contractor or to his |
3 | | order, in violation of the rights and
interests of the persons |
4 | | intended to be benefited by this Act: Provided,
if it shall |
5 | | appear to the court that the owner and contractor
fraudulently, |
6 | | and for the purpose of defrauding sub-contractors fixed an
|
7 | | unreasonably low price in their original contract for the |
8 | | erection or
repairing of such house, building or other |
9 | | improvement, then the court
shall ascertain how much of a |
10 | | difference exists between a fair price for
labor, services, |
11 | | material, fixtures, apparatus or machinery, forms or form work |
12 | | used in said house, building or other improvement,
and the sum |
13 | | named in said original contract, and said difference shall
be |
14 | | considered a part of the contract and be subject to a lien. But |
15 | | where
the contractor's statement, made as provided in Section |
16 | | 5, shows the
amount to be paid to the sub-contractor, or party |
17 | | furnishing material,
or the sub-contractor's statement, made |
18 | | pursuant to Section 22, shows
the amount to become due for |
19 | | material; or notice is given to the owner,
as provided in |
20 | | Sections 24 and 25, and thereafter such sub-contract
shall be |
21 | | performed, or material to the value of the amount named in such
|
22 | | statements or notice, shall be prepared for use and delivery, |
23 | | or
delivered without written protest on the part of the owner |
24 | | previous to
such performance or delivery, or preparation for |
25 | | delivery, then, and in
any of such cases, such sub-contractor |
26 | | or party furnishing or preparing
material, regardless of the |
|
| | SB3023 Enrolled | - 8 - | LRB098 17607 HEP 52719 b |
|
|
1 | | price named in the original contract, shall
have a lien |
2 | | therefor to the extent of the amount named in such
statements |
3 | | or notice. In case of default or abandonment by the
contractor, |
4 | | the sub-contractor or party furnishing material, shall have
and |
5 | | may enforce his lien to the same extent and in the same manner |
6 | | that
the contractor may under conditions that arise as provided |
7 | | for in
Section 4 of this Act, and shall have and may exercise |
8 | | the same rights
as are therein provided for the contractor.
|
9 | | (e) Any provision in a contract, agreement, or |
10 | | understanding,
when payment from a contractor to a |
11 | | subcontractor or supplier is
conditioned upon receipt of the |
12 | | payment from any other party including a
private or public |
13 | | owner, shall not be a defense by the
party responsible for |
14 | | payment to a claim brought under Section 21, 22, 23,
or 28 of |
15 | | this Act against the party. For the purpose of this Section,
|
16 | | "contractor" also includes subcontractor or supplier. The |
17 | | provisions of
Public Act 87-1180 shall be construed as
|
18 | | declarative 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 |
21 | | becoming law.
|