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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Mechanics Lien Act is amended by changing | |||||||||||||||||||
5 | Section 21 as follows:
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6 | (770 ILCS 60/21) (from Ch. 82, par. 21)
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7 | Sec. 21. Sub-contractor defined; lien of sub-contractor; | |||||||||||||||||||
8 | notice; size of type; service of notice; amount of lien; | |||||||||||||||||||
9 | default by contractor.
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10 | (a) Subject to the provisions of Section 5, every mechanic,
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11 | worker or other person who shall furnish any labor, services, | |||||||||||||||||||
12 | material, fixtures, apparatus or
machinery, forms or form work | |||||||||||||||||||
13 | for the
contractor, or shall furnish any material to be | |||||||||||||||||||
14 | employed in the process
of construction as a means for | |||||||||||||||||||
15 | assisting in the erection of the building
or improvement in | |||||||||||||||||||
16 | what is commonly termed form or form work where
concrete, | |||||||||||||||||||
17 | cement or like material is used in whole or in part, shall be
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18 | known under this Act as a sub-contractor, and shall have a lien | |||||||||||||||||||
19 | for the
value thereof, with interest on such amount from the | |||||||||||||||||||
20 | date the same is
due, from the same time, on the same property | |||||||||||||||||||
21 | as provided for the
contractor, and, also, as against the | |||||||||||||||||||
22 | creditors and assignees, and
personal and legal | |||||||||||||||||||
23 | representatives of the contractor, on the material,
fixtures, |
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1 | apparatus or machinery furnished, and on the moneys or other
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2 | considerations due or to become due from the owner under the | ||||||
3 | original
contract. | ||||||
4 | (b) If the legal effect of any contract between the owner | ||||||
5 | and
contractor is that no lien or claim may be filed or | ||||||
6 | maintained by any
one and the waiver is not prohibited by this | ||||||
7 | Act, or that such contractor's lien shall be subordinated to | ||||||
8 | the interests of any other party, such provision shall be
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9 | binding; but the only admissible evidence
thereof as against a | ||||||
10 | subcontractor or material supplier, shall be proof of
actual | ||||||
11 | notice thereof to him or her before his or her contract is | ||||||
12 | entered into. Such subordination provision shall not be binding | ||||||
13 | on the subcontractor unless set forth in its entirety in | ||||||
14 | writing in the contract between the contractor and | ||||||
15 | subcontractor or material supplier.
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16 | (c) It shall be the duty of each subcontractor who has | ||||||
17 | furnished, or is
furnishing, labor, services, material, | ||||||
18 | fixtures, apparatus or machinery, forms or form work for an | ||||||
19 | existing owner-occupied single
family residence, in order to | ||||||
20 | preserve his lien, to notify the occupant
either personally or | ||||||
21 | by certified mail, return receipt requested,
addressed to the | ||||||
22 | occupant or his agent of the residence within 60 days
from his | ||||||
23 | first furnishing labor, services, material, fixtures, | ||||||
24 | apparatus or machinery, forms or form work, that he is | ||||||
25 | supplying labor, services, material, fixtures, apparatus or | ||||||
26 | machinery, forms or form work provided, however, that any |
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1 | notice given after 60
days by the subcontractor shall preserve | ||||||
2 | his lien, but only to the
extent that the owner has not been | ||||||
3 | prejudiced by payments made prior to
receipt of the notice. The | ||||||
4 | notification shall include a warning to the
owner that before | ||||||
5 | any payment is made to the contractor, the owner
should receive | ||||||
6 | a waiver of lien executed by each subcontractor who has
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7 | furnished labor, services, material, fixtures, apparatus or | ||||||
8 | machinery, forms or form work.
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9 | The notice shall contain the name and address of the | ||||||
10 | subcontractor or
material man, the date he started to work or | ||||||
11 | to deliver materials, the
type of work done and to be done or | ||||||
12 | the type of materials delivered and
to be delivered, and the | ||||||
13 | name of the contractor requesting the work.
The notice shall | ||||||
14 | also contain the following warning:
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15 | "NOTICE TO OWNER
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16 | The subcontractor providing this notice has performed work | ||||||
17 | for or
delivered material to your home improvement contractor. | ||||||
18 | These services or
materials are being used in the improvements | ||||||
19 | to your residence and entitle
the subcontractor to file a lien | ||||||
20 | against your residence if the services or
materials are not | ||||||
21 | paid for by your home improvement contractor. A lien
waiver | ||||||
22 | will be provided to your contractor when the subcontractor is | ||||||
23 | paid,
and you are urged to request this waiver from your | ||||||
24 | contractor when paying
for your home improvements."
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25 | Such warning shall be in at least 10 point bold face type. | ||||||
26 | For
purposes of this Section, notice by certified mail is |
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1 | considered served
at the time of its mailing.
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2 | (d) In no case, except as hereinafter provided, shall the | ||||||
3 | owner be
compelled to pay a greater sum for or on account of | ||||||
4 | the completion of
such house, building or other improvement | ||||||
5 | than the price or sum
stipulated in said original contract or | ||||||
6 | agreement, unless payment be
made to the contractor or to his | ||||||
7 | order, in violation of the rights and
interests of the persons | ||||||
8 | intended to be benefited by this Act: Provided,
if it shall | ||||||
9 | appear to the court that the owner and contractor
fraudulently, | ||||||
10 | and for the purpose of defrauding sub-contractors fixed an
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11 | unreasonably low price in their original contract for the | ||||||
12 | erection or
repairing of such house, building or other | ||||||
13 | improvement, then the court
shall ascertain how much of a | ||||||
14 | difference exists between a fair price for
labor, services, | ||||||
15 | material, fixtures, apparatus or machinery, forms or form work | ||||||
16 | used in said house, building or other improvement,
and the sum | ||||||
17 | named in said original contract, and said difference shall
be | ||||||
18 | considered a part of the contract and be subject to a lien. But | ||||||
19 | where
the contractor's statement, made as provided in Section | ||||||
20 | 5, shows the
amount to be paid to the sub-contractor, or party | ||||||
21 | furnishing material,
or the sub-contractor's statement, made | ||||||
22 | pursuant to Section 22, shows
the amount to become due for | ||||||
23 | material; or notice is given to the owner,
as provided in | ||||||
24 | Sections 24 and 25, and thereafter such sub-contract
shall be | ||||||
25 | performed, or material to the value of the amount named in such
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26 | statements or notice, shall be prepared for use and delivery, |
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1 | or
delivered without written protest on the part of the owner | ||||||
2 | previous to
such performance or delivery, or preparation for | ||||||
3 | delivery, then, and in
any of such cases, such sub-contractor | ||||||
4 | or party furnishing or preparing
material, regardless of the | ||||||
5 | price named in the original contract, shall
have a lien | ||||||
6 | therefor to the extent of the amount named in such
statements | ||||||
7 | or notice. In case of default or abandonment by the
contractor, | ||||||
8 | the sub-contractor or party furnishing material, shall have
and | ||||||
9 | may enforce his lien to the same extent and in the same manner | ||||||
10 | that
the contractor may under conditions that arise as provided | ||||||
11 | for in
Section 4 of this Act, and shall have and may exercise | ||||||
12 | the same rights
as are therein provided for the contractor.
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13 | (e) Any provision in a contract, agreement, or | ||||||
14 | understanding,
when payment from a contractor to a | ||||||
15 | subcontractor or supplier is
conditioned upon receipt of the | ||||||
16 | payment from any other party including a
private or public | ||||||
17 | owner, shall not be a defense by the
party responsible for | ||||||
18 | payment to a claim brought under Section 21, 22, 23,
or 28 of | ||||||
19 | this Act or for breach of contract against the party. For the | ||||||
20 | purpose of this Section,
"contractor" also includes | ||||||
21 | subcontractor or supplier. The provisions of
Public Act 87-1180 | ||||||
22 | shall be construed as
declarative of existing law and not as a | ||||||
23 | new enactment.
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24 | (Source: P.A. 94-615, eff. 1-1-06; 94-627, eff. 1-1-06.)
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25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
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